New Delhi, June 12 -- Domestic equity benchmark indices witnessed a strong rebound on Friday, surging nearly 1.5 per cent each, as global risk sentiment improved sharply following signals of a possible breakthrough in tensions between the United States and Iran.

The rally came after US President Donald Trump indicated that Washington and Tehran could finalise a peace agreement as early as this weekend. The optimism was further reinforced by statements from Iranian officials suggesting progress in diplomatic engagement, raising hopes of a de-escalation in the prolonged conflict and easing concerns over disruptions to global energy supplies.

Investor sentiment received a significant boost as prospects of a truce triggered a sharp decline ...