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Markets trade higher in early deals on US-Iran deal hopes
May-21-2026

Indian equity benchmarks made gap-up start on Thursday tracking positive cues from global peers amid rising optimism over a possible peace agreement between the US and Iran. Soon, markets trimmed some of their gains but were trading higher, with notable gains of around half a percent in early deals. Buying was witnessed in Capital Goods, Industrials and Realty stocks, while market participants booked profits in IT stocks after recent rally. Some support came as the government data showed that production growth in eight core infrastructure sectors rose 1.7% in April, driven by higher output of steel, cement and electricity, from 1% in the same month last year and 1.2% in March. Traders took note of report that the Reserve Bank will conduct a $5 billion USD-INR buy and sell swap auction on May 26 to inject long-term liquidity in the banking system. However, upside remained capped amid foreign fund outflows. As per NSE data, foreign institutional investors (FII) sold shares worth Rs 1,597.35 crore on Wednesday.

On the global front, Asian markets were trading mostly higher after U.S. President Donald Trump said that negotiations with Iran were in their final stages, supporting expectations of a peace deal to end the Middle East conflict. Japans Nikkei 225 jumped after its Exports rose at the fastest pace since January, rising 14.8% in April, driven by surge in semiconductor shipments. South Korea’s KOSPI surged after Samsung Electronics workers suspended a planned strike and Nvidia posted stronger-than-expected results.

The BSE Sensex is currently trading at 75666.99, up by 348.60 points or 0.46% after trading in a range of 75475.92 and 75945.79. There were 24 stocks advancing against 6 stocks declining on the index.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.75%, Industrials up by 1.58%, Realty up by 1.43%, Power up by 1.13% and Basic Materials up by 1.09%, while IT down by 0.02% was the sole losing index on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.99%, Interglobe Aviation up by 2.50%, Asian Paints up by 1.30%, Tata Steel up by 1.11% and Eternal up by 1.07%. On the flip side, Infosys down by 0.52%, Bajaj Finance down by 0.24%, Bajaj Finserv down by 0.12%, TCS down by 0.12% and Titan Company down by 0.11% were the top losers.

Meanwhile, with an aim of strengthening India’s global economic partnerships, India and Italy have decided to elevate their relationship to a special strategic partnership and strengthen cooperation in trade, investment, and new technologies, following talks between Prime Minister Narendra Modi and his Italian counterpart, Giorgia Meloni.

Ahead of bilateral talks, PM Modi called on Italian President Sergio Mattarella and discussed different aspects relating to India-Italy friendship, including trade, investment and cultural linkages. They also discussed collaboration in areas such as AI, critical minerals, space and nuclear energy. Earlier, Modi said that his visit would focus on ways to strengthen cooperation between India and Italy, with particular attention to the India-Middle East-Europe Economic Corridor (IMEC).

India and Italy have witnessed growing economic engagement in recent years, with bilateral trade reaching Euro 14.25 billion in 2025. India's exports stood at Euro 8.55 billion, while Italian exports to India were recorded at Euro 5.70 billion in 2025, marking an increase of 9.42 per cent over 2024. The two countries have set a target of annual bilateral trade of Euro 20 billion by 2029. Italy is India's fourth-largest trading partner in the European Union and has identified India as one of the priority countries under its global trade strategy.

The CNX Nifty is currently trading at 23793.15, up by 134.15 points or 0.57% after trading in a range of 23728.05 and 23859.90. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.53%, Apollo Hospital up by 3.01%, Bharat Electronics up by 2.98%, Interglobe Aviation up by 2.38% and Max Healthcare Inst up by 2.29%. On the flip side, ONGC down by 0.39%, Tata Consumer Products down by 0.38%, Nestle down by 0.32%, Infosys down by 0.23% and Bajaj Finance down by 0.19% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 2155.59 points or 3.48% to 61,960.00, Taiwan Weighted jumped 1508.4 points or 3.63% to 41,529.22, KOSPI rose 557.41 points or 7.18% to 7,766.36, Straits Times advanced 14.56 points or 0.29% to 5,059.47, Hang Seng added 8.88 points or 0.03% to 25,660.00 and Shanghai Composite was up by 0.19 points to 4,162.37, while Jakarta Composite plunged 161.13 points or 2.62% to 6,157.37.
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