Updates for markets open

May 21 (Reuters) - Indian shares opened higher on Thursday, supported by a sharp drop in oil prices as investors assessed signs that the U.S. may be nearing a deal with Iran to end the Middle East conflict.

The benchmark Nifty 50 .NSEI rose 0.72% to 23,830.05 and the BSE Sensex .BSESN gained 0.55% to 75,732.42, as of 9:15 a.m. IST.

All 16 major sectors logged gains. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 0.7% each.

Other Asian markets .MIAPJ0000PUS gained 2.9%. U.S. President Donald Trump said on Wednesday that negotiations with Iran were in their final stages, supporting expectations of a peace deal to end the Middle East conflict.

Meanwhile, two Chinese oil tankers exited the Strait of Hormuz on Wednesday, shipping data showed, a tentative sign of easing pressure in the Gulf.

Brent crude LCOc1 fell 5.6% on Wednesday and was up 0.8% in Thursday trade, hovering near $106 a barrel. O/R