Indian equity markets extended their winning streak into a third consecutive session, with the benchmark Nifty 50 and Sensex sustaining levels above critical technical resistance.
The rally, which capped a holiday-shortened week, was supported by modest gains across mid- and small-cap segments as investor sentiment improved on the back of falling crude oil prices and positive developments in US-Iran diplomatic talks.
The broader market remained upbeat, with the Nifty reclaiming and sustaining key support levels that had previously acted as resistance.
This technical breakout has reinforced bullish momentum, particularly in sectors sensitive to input costs and geopolitical stability.
The decline in global oil prices has provided a tailwind for domestic equities, reducing inflationary pressures and improving corporate margin expectations.
Geopolitical tensions in the Strait of Hormuz have shown signs of easing, with diplomatic efforts between the US and Iran progressing.
This de-escalation has reduced shipping risk uncertainty, which had previously weighed on global trade routes and energy markets.
Oman's diplomatic opacity on Hormuz fees had deepened shipping risk uncertainty earlier in the week, but recent developments suggest a potential path toward stability.
Iran's previous threats of a forceful response to tankers deviating from approved routes in the Strait of Hormuz have not materialized into significant disruptions, allowing markets to price in a lower risk premium.