Iran talks, crude crash fuel midday rally; IT joins financials at the top, pharma bleeds

The stock market in India witnessed a midday rally, with the Sensex and Nifty 50 both climbing higher. As of 1.30 PM, the Sensex was at 78,719.67, up 625.03 points or 0.80 per cent, while the Nifty 50 stood at 24,588.35, up 204.75 points or 0.84 per cent. This rally was fueled by a sharp decline in crude oil prices and improved global risk sentiment following US President Donald Trump's decision to resume direct diplomatic talks with Iran.

The improvement in risk appetite led to the rupee gaining against the US dollar, trading near ₹95.1 per dollar. The broad-based rally saw 2,943 stocks advance and 1,031 decline, with 230 remaining unchanged. Over 149 stocks crossed their 52-week highs, while 43 hit their 52-week lows, indicating strong buying interest across the market.

IT companies Infosys and TCS led the gainers list, with Infosys adding 3.27 per cent to ₹1,167.10 and TCS rising 3.06 per cent to ₹2,438.00. The financial sector, however, suffered, with Sun Pharmaceutical Industries and Apollo Hospitals falling by 1.56 per cent and 1.08 per cent respectively. The healthcare sector's underperformance contrasted with the broader market gains, suggesting sector-specific challenges rather than a lack of defensiveness.

Analysts were watching the 24,600 level on the Nifty 50 as a key resistance zone, with a decisive move above it potentially paving the way for further gains. The Reserve Bank of India's upcoming Monetary Policy Committee meeting remained a key factor to watch, as rate-sensitive sectors, particularly banking and financials, were closely monitored.