Sensex, Nifty: Why stock market is rising today after Trump's Iran deal comment 

Benchmark stock indices Sensex and Nifty climbed over 1 per cent each in Friday's trade as a last-moment cancellation of strikes on Iran by the US, and the US President Donald Trump's comments on progress in the Iran deal sent Brent oil prices tumbling below $90 a barrel mark, giving Asian stocks a big lift. 

At 9.21 am, the BSE Sensex was trading at 74,836.85, up 1,004.30 points or 1.36 per cent. Nifty was quoting at 23,440.70, up 279.10 points or 1.21 per cent. "A decisive move above 23,500 could accelerate momentum towards 23,700 and higher levels," said Rajesh Palviya, Head of Research, Axis Direct.

Fear gauge India VIX, which suggests the volatility in the market over the next 30 days, fell 5.7 per cent to 14.72. The rally was so strong that 47 of 50 Nifty stocks were trading higher, with private lenders HDFC Bank and ICICI Bank taking the lead, rising 1.4-1.6 per cent.

Asian markets such as Korea and Japan jumped up to 7 per cent. Mainland China and Hong Kong also saw strong buying. India was no exception.

"Global market sentiment took a massive bullish turn after US President Donald Trump announced that back - channel talks with Iran have progressed to the highest level and been approved. By dialing back immediate threats of military action, the sudden cooling of geopolitical tensions triggered an aggressive wave of short - covering and dip - buying across Wall Street, marking its best single - day performance in over two months," Bajaj Broking noted.

Dow Jones ended 1.86 per cent higher at 50,848.75. S&P500 rose 1.75 per cent to 7,394.30. Tech-heavy Nasdaq Composite even jumped 2.54 per cent to 25,809.66. Following the development, Kospi climbed 7.66 per cent to 8,358.33. Japan's Nikkei was up 3.77 per cent at 66,640. Markets across Hong Kong and mainland China advanced 1.3-1.6 per cent each. Brent futures for August delivery stood at $89.30 per barrel, down 1.19 per cent. Indian stocks may take cue.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments said: "In keeping with his ludicrous inconsistency, President Trump backed off from his threat to ' hit Iran very hard tonight' and declared that “ we are close to a great settlement to end the war “. How the agreement will pan out remains to be seen. But the good news is that Brent is sharply down to $ 89 with potential for more downside if the agreement becomes real."  

Iran's Foreign Ministry spokesperson Esmail Baghaei told state television that Iran had not yet reached a final conclusion on any agreement. "Iran has not yet reached a final conclusion regarding an agreement," he said, acknowledging that much of the proposed text had already been agreed while accusing Washington of making "excessive demands" and introducing "new requests" during the negotiations. He said Iran would not "give way under pressure" or "depart from its red lines."