Updates for morning trade

By Bharath Rajeswaran and Vivek Kumar M

May 29 (Reuters) - Indian shares edged higher on Friday as gains in IT stocks after Wipro expanded an artificial intelligence partnership offset caution over lingering Middle East tensions.

The benchmark Nifty 50 .NSEI rose 0.13% to 23,935.45, and the BSE Sensex .BSESN added 0.24% to 76,053.64, as of 10:17 a.m. IST.

The U.S. and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters, though U.S. President Donald Trump has yet to approve it, and Iranian state media said it had not been finalized.

Brent crude futures LCOc1 dropped to $93 per barrel, while Asian markets .MIAPJ0000PUS jumped 2% on optimism over the U.S.-Iran deal and AI rally. MKTS/GLOB

For the week, the Nifty and Sensex are up 0.9% and 0.8%, respectively.

"Markets are pausing as investors weigh the prospects for peace in the Middle East and the potential ripple effects for oil," said Hiren Dasani, chief investment officer for emerging markets at WhiteOak Capital.

"If crude settles around $85-$90 over the next nine months, the impact on corporate earnings should remain manageable and markets need confirmation of that for any sustained upmove from here," Dasani said.

On the day, ten of the 16 major sectors logged losses.

IT index .NIFTYIT rose 2.7%. Wipro WIPR.NS gained 2.2% following a partnership with ServiceNow to implement agentic AI workflows. Peers TCS TCS.NS, Infosys INFY.NS and HCLTech HCLT.NS rose between 1.7% and 4.3%.

The broader small- .NIFSMCP100 rose 0.4% while mid-caps .NIFMDCP100 traded flat.

Among stocks, hospital chains operator Max Healthcare MAXE.NS fell 1.2%, dropping 10% in five sessions after subdued quarterly earnings.

Defence firm Bharat Dynamics BARA.NS lost 7% and footwear retailer Bata India BATA.NS fell 3.5% after reporting a fall in fourth-quarter profit.

Pharmaceuticals company Supriya Lifesciences SPRL.NS climbed 16.6% and jewellery maker PC Jeweller PCJE.NS jumped 14% after both companies posted higher March quarter profit.