Mumbai: Domestic equity markets opened higher on Thursday amid hopes of a US-Iran peace deal and a better-than-expected June earnings season so far.

The Sensex started the session at 78,782.43, up 200 points or 0.25 per cent. The Nifty opened at 24,632.65, gaining 8 points or 0.03 per cent.

Sectorally, IT, chemicals, pharmaceuticals and healthcare stocks traded higher in early deals, with Nifty IT, Nifty Chemicals, Nifty Pharma and Nifty 500 Healthcare rising by up to 0.50 per cent. On the other hand, Nifty Cement, Nifty Metal, Nifty Auto and Nifty Realty declined by up to 0.52 per cent.

Among Nifty constituents, Trent, Mahindra & Mahindra, NTPC, Power Grid, Bajaj Finance, TMPV, Bharti Airtel, ONGC, Hindalco Industries, JSW Steel, Kotak Mahindra Bank, Maruti Suzuki, Tata Steel and Bajaj Auto were among the top losers in early trade.

Analysts said the August monetary policy had limited influence on the market trend. The broad takeaway from the policy, they noted, was that a rate hike remains some time away, so interest-elastic sectors are unlikely to be driven primarily by interest-rate expectations in the near term. However, sectors such as financials and automobiles have continued to perform well on the back of other fundamental factors.

Experts pointed to first-quarter results from financials—particularly NBFCs—and automobile companies as signalling sustained growth supported by buoyant demand. Strong sectors such as pharmaceuticals and telecom have also reported encouraging results with indications of further improvement ahead, they said.

On the institutional front, foreign institutional investors (FIIs) turned net sellers on Wednesday, offloading Indian equities worth Rs 943 crore. Domestic institutional investors (DIIs) continued to provide support, purchasing equities worth Rs 2,883 crore.

Market sentiment was also influenced by reports of a proposed agreement involving Iran and Oman aimed at easing US-Iran tensions. According to those reports, the arrangement could include provisions related to shipping through the Strait of Hormuz.

On the commodities front, international benchmark Brent crude slipped 0.51 per cent to remain below the $80 per barrel mark, while US West Texas Intermediate (WTI) crude declined 0.77 per cent to $74.64 a barrel.

The higher open reflected a combination of geopolitical optimism and confidence in the ongoing earnings season, even as sectoral performance remained mixed and global oil prices eased.