Sensex and Nifty surged on Friday, ending the week on a strong note after reports of a possible US-Iran peace agreement raised hopes of easing disruptions to global oil supplies and triggered a sharp decline in crude oil prices.
The BSE Sensex jumped 1,695.40 points, or 2.3%, to close at 75,527.95, while the Nifty 50 advanced 461.30 points, or 1.99%, to settle at 23,622.90.
Markets opened sharply higher, with the Sensex gaining more than 900 points and the Nifty rising over 250 points in early trade, before extending gains through the session.
Investor sentiment improved after US President Donald Trump said there had been a progress in talks aimed at ending the war on Iran.
A draft agreement contains 14 provisions, including the reopening of the Strait of Hormuz within 30 days, the release of $24 billion in frozen Iranian assets and 60 days of negotiations on nuclear issues, according to Iran's semi-official Mehr news agency.
Crude oil prices fell sharply on Friday amid expectations that an agreement could lead to the reopening of the Strait of Hormuz, a critical route for global oil and gas shipments.
The rally was driven largely by the sharp decline in oil prices.
