Indian equity markets traded with a positive bias on May 26, with the Nifty Midcap 100 index hitting a fresh record high amid improving global risk sentiment and hopes of a possible diplomatic breakthrough between the United States and Iran.
At around 10:30 AM, the Nifty Midcap 100 was trading near 62,184, up 0.35%, after touching a new all-time high of 62,202 during the session. Broader markets outperformed benchmark indices, with the Nifty Smallcap 100 gaining nearly 1%, while the Nifty 50 and Sensex were up around 0.2%.
Market breadth remained firmly positive, with advancing shares on the NSE outnumbering declining stocks by nearly 2:1. Energy and metal shares led the gains, with stocks such as Vedanta, Adani Power, JSW Energy, Premier Energies and Waaree Energies featuring among the top gainers.
Investor sentiment improved after fresh developments around ongoing US-Iran negotiations raised hopes of easing geopolitical tensions in the Middle East. According to Reuters, Iran said “conclusions have been reached on many topics” in discussions around a possible memorandum with the United States, although it clarified that no final agreement is imminent yet.
US President Donald Trump also struck an optimistic tone over the weekend, saying that a deal with Iran was “largely negotiated” and that discussions were progressing, though he added there was “no rush” to finalise an agreement.
Reports over the last 12 hours further suggested that negotiations remain active despite intermittent military tensions. Trump reiterated that any agreement would need to meet core US demands, while maintaining optimism about a diplomatic resolution.
The possibility of easing tensions around Iran and the Strait of Hormuz has helped calm concerns over crude oil supply disruptions and broader geopolitical risks, aiding global equity sentiment. Oil prices had recently corrected sharply on expectations that a peace deal could reopen supply routes and reduce pressure on energy markets.
Back home, the Indian rupee also strengthened modestly against the US dollar during trade, while domestic investors continued to accumulate broader market stocks amid improving risk appetite.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.