Indian equity markets extended gains in late afternoon session amid private reports indicating that Iran has made a conditional offer to US, and it ready to Abandon Nuclear Programme. Besides, traders opted to pick up fundamentally good stocks at lower levels following the recent pull back by the markets. Meanwhile, the refining companies like Reliance Industries, Chennai Petroleum and MRPL grabbed investors’ attention as reports suggested that the Chinese government has told its oil refiners to suspend exports of diesel and gasoline due to the ongoing US-Iran war. 

On the global front, all Asian equity markets were trading higher after U.S. jobs and services data beat forecasts. European equity markets were trading mostly in red as investors digested mixed earnings results and kept a close eye on oil market dynamics.

The BSE Sensex is currently trading at 79880.07, up by 763.88 points or 0.97% after trading in a range of 79201.69 and 79956.68. There were 20 stocks advancing against 10 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 3.06%, Capital Goods up by 2.31%, Utilities up by 2.25%, Industrials up by 2.25% and Power up by 2.12%, while IT down by 0.56% and TECK down by 0.21% were the only losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 4.37%, Bharat Electronics up by 4.33%, Adani Ports & SEZ up by 3.79%, Reliance Industries up by 3.41% and NTPC up by 3.10%. On the flip side, Eternal down by 1.20%, Tech Mahindra down by 1.14%, Axis Bank down by 0.72%, HCL Technologies down by 0.70% and ICICI Bank down by 0.68% were the top losers.

Meanwhile, an external member of the RBI's rate-setting panel Nagesh Kumar has said that ongoing Middle East conflict presents several short-term obstacles for Indian economy, but it is unlikely to significantly affect the country’s long-term growth prospects.

He said in the current scenario, sharp rise in crude oil prices, exports disruptions and impact on remittances have been identified as the immediate challenges on the growth front. He noted that in the immediate short run, the conflict is escalating with US-Israel strikes and oil prices are likely to harden.

Despite these risks, Kumar expressed hope that the crisis will be resolved soon, given the high stakes that the world has in the region. He said that diversification of oil sourcing could help mitigate risks. He noted that the opening up of Venezuelan oil supplies for India is also likely to be helpful, as it diversifies the options.

He added that in the event the Middle East crisis ends quickly and sanctions on Iran are lifted, India may gain from cheaper oil supplies. Looking ahead, he emphasised the need for fiscal and monetary policies to work in a coordinated manner to push India’s gross domestic product (GDP) growth on a higher trajectory.

The CNX Nifty is currently trading at 24726.80, up by 246.30 points or 1.01% after trading in a range of 24529.40 and 24761.15. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.77%, Coal India up by 4.80%, Larsen & Toubro up by 4.25%, Bharat Electronics up by 4.06% and Adani Ports & SEZ up by 3.66%. On the flip side, Tech Mahindra down by 1.24%, Eternal down by 1.20%, ICICI Bank down by 0.92%, HDFC Life Insurance down by 0.85% and SBI down by 0.83% were the top losers.

All Asian equity markets were trading higher; Nikkei 225 surged 1038.46 points or 1.88% to 55,284.00, Taiwan Weighted added 844.06 points or 2.51% to 33,672.94, Hang Seng advanced 101.52 points or 0.4% to 25,351.00, KOSPI increased 490.36 points or 8.78% to 5,583.90, Straits Times rose 26.77 points or 0.56% to 4,839.52, Shanghai Composite strengthened 26.1 points or 0.64% to 4,108.57 and Jakarta Composite gained 107.98 points or 1.41% to 7,685.04.

European equity markets were trading mostly in red; France’s CAC fell 20.73 points or 0.25% to 8,147.00 and Germany’s DAX lost 21.36 points or 0.09% to 24,184.00, while UK’s FTSE 100 increased 13.9 points or 0.13% to 10,581.55.