Sensex, Nifty trade higher after Trump signals possible Iran deal

Domestic equity markets traded higher on Tuesday in early trade amid hopes of a deescalation in the West Asia conflict after US President Donald Trump indicated a possible nuclear deal with IranSensex rose as much as 368 points or 048 per cent to hit an intraday high of 75683 in morning trade while Nifty was trading at 23758 up 110 points or 045 per centSectorally IT stocks led the gains with the Nifty IT index surging 4 per cent Similarly the Nifty MidSmall IT Telecom index advanced nearly 3 per cent while the Nifty Chemicals index rose 116 per centAmong laggards the Nifty Private Bank index slipped by 011 per cent Nifty Auto and Nifty Metal indices were also trading marginally lowerFrom the Nifty pack Hindalco Industries declined the most falling over 1 per cent followed by Coal India which slipped 093 per cent and ONGC which traded 081 per cent lower Titan Company was down around 06 per cent while Kotak Mahindra Bank and Eternal fell 054 per cent and 049 per cent respectivelyJSW Steel UltraTech Cement and Shriram Finance were also trading lower by up to 047 per cent Heavyweights HDFC Bank and ICICI Bank slipped marginallyAnalysts said concerns over elevated valuations in global AIlinked stocks were prompting investors to look at relatively attractive segments in IndiaIf FII buying gathers momentum largecap financials especially leading banks are likely to outperform given their reasonable valuations and growth potential market experts saidOn the broader macroeconomic outlook analysts said concerns related to growth inflation and currency depreciation continue to persist amid the ongoing energy crisisThey advised investors to focus on sectors that are relatively insulated from these headwinds including pharmaceuticals powerrelated companies and defence stocksCommenting on earnings analysts said fourth quarter results were encouraging and in many cases better than expected signalling that the economy had started recovering due to last years fiscal and monetary stimulus measures before being hit by the latest energy shockA quick resolution of the Strait of Hormuz crisis could help the economy recover faster and limit the extent of the slowdown expected this year they addedMarkets found support after American President Trump said he had paused a planned attack on Iran following a peace proposal from Tehran and that there was a very good chance of reaching a deal on Irans nuclear programmeIn commodities oil prices traded lower with international benchmark Brent crude declining 274 per cent to USD 10902 per barrel while US WTI crude traded 216 per cent lower at USD 10212 per barrelIn Asia markets traded mixedly Japans Nikkei and South Koreas KOSPI slipped up to 3 per cent while Hong Kongs Hang Seng traded marginally higherOvernight in the US the SampP 500 ended nearly flat down 007 per cent while the Nasdaq declined 051 per centThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever