Indices jumped as aggressive short covering, easing geopolitical concerns in the West Asia, a sharp decline in global crude oil prices and a strong recovery in the Indian rupee boosted the sentiment.Indian stock markets staged a strong rally on Friday, with benchmark indices surging more than 2% amid expectations of a possible diplomatic breakthrough between the US and Iran that could lead to the end of West Asia conflict.Indices jumped as aggressive short covering, easing geopolitical concerns in the West Asia, a sharp decline in global crude oil prices and a strong recovery in the Indian rupee boosted the sentiment.The benchmark BSE Sensex jumped by 1,695.40 points, or 2.30%, to close at 75,527.95, while the NSE Nifty50 advanced 461.30 points, or 1.99%, to settle at 23,622.90.The Nifty reclaimed the crucial 23,600 level and ended comfortably above it, reflecting renewed confidence among investors after recent bouts of volatility. Positive global market cues and sustained domestic institutional buying further strengthened investor sentiment throughout the trading session.While domestic institutions led by insurance companies and mutual funds pumped Rs 5,341 crore into the market, foreign investors pulled out Rs 1,082 crore on Friday.Market participants attributed the sharp rise largely to expectations of a possible diplomatic breakthrough between the US and Iran. Hopes of de-escalation in the conflict-ridden region triggered a decline in crude oil prices, a development that is particularly beneficial for India, one of the world’s largest oil-importing nations. Lower oil prices are expected to reduce inflationary pressures and improve the country’s fiscal outlook, prompting fresh buying across sectors. Supporting the bullish sentiment, the Indian rupee recorded a significant recovery, appreciating by 64 paise to close at 95.11 against the US dollar. The rupee benefited from the sharp fall in global crude prices and weakness in the American currency.The strengthening rupee also boosted investor confidence by easing concerns over imported inflation and foreign capital outflows, traders said.Story continues below this adBrent crude, which had traded near $93 per barrel in overnight dealings, fell sharply after Trump reportedly cancelled plans for additional military strikes against Iran.The rally on Dalal Street was broad-based, with all major sectoral indices ending in positive territory. Realty, financial services, PSU banks, private banks and consumer durable stocks led the gains, rising between 2 and 4%. Information technology stocks, while ending higher, underperformed the broader market and remained the session’s relative laggards.