Updates for morning trade

By Bharath Rajeswaran

May 21 (Reuters) - Indian shares advanced on Thursday, supported by a 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, while key corporate earnings were also on the radar.

The benchmark Nifty 50 .NSEI rose 0.63% to 23,806.6 and the BSE Sensex .BSESN gained 0.53% to 75,720.79, as of 9:55 a.m. IST.

All 16 major sectors logged gains. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 1% and 0.7%, respectively. Other Asian markets .MIAPJ0000PUS gained 3%.

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

"Markets have gained momentum as investors turn optimistic over a possible resolution of the ongoing Middle East conflict," said Aakash Shah, technical research analyst at Choice Broking.

Momentum indicators suggest bearish pressure is easing, with healthy buying interest emerging at lower levels, though the broader trend remains cautious due to lingering global uncertainties, Shah said.

Among stocks, Apollo Hospitals APLH.NS rose 2.4% to a record high, after reporting higher quarterly profit, driven by strong demand for complex medical procedures and growth in its pharmacy and digital health businesses.

Eyewear retailer Lenskart Solutions LENS.NS jumped 6% after posting about 46% year-on-year growth in revenue in the March quarter.

Aditya Birla group-owned Grasim Industries GRAS.NS rose 4.3% to a record high after its fourth-quarter loss narrowed, supported by strength in core businesses.

Electric two-wheeler maker Ola Electric OLAE.NS lost 4% after it posted lower March quarter revenue, with brokerages flagging pricing pressure and execution challenges as key concerns for growth and margins.