Indian equity benchmarks posted strong gains at the opening bell on Monday after global investors welcomed reports of a breakthrough between the United States and Iran that could ease disruptions to global energy supplies.
The rally came alongside a sharp decline in crude oil prices, offering relief to import-dependent economies such as India and improving sentiment across Asian markets.
The BSE Sensex surged more than 1,100 points in early trade to touch 76,656.61, while the NSE Nifty 50 climbed 350.40 points to 23,973.30. Earlier in the session, the Sensex had opened above the 76,700 mark, and Nifty approached 24,000.
Real estate, cement and automobile stocks led the gains. Nifty Realty rose 2.59 per cent, while Nifty Cement advanced 2.46 per cent. Nifty Auto gained nearly 2 per cent.
Consumer durables, oil and gas, and PSU banking shares also traded firmly in the green. The broader rally was largely supported by optimism surrounding lower energy costs and improving global risk appetite.
Healthcare stocks, however, lagged behind the broader market trend. Nifty Pharma slipped 0.17 per cent, while the healthcare index was marginally lower.
Crude oil declines after Iran-US breakthrough
Investor sentiment received a boost after US President Donald Trump announced that a deal with Iran had been finalised. Trump said on Truth Social that the agreement would bring “peace and security” to the region.
He also announced the reopening of the Strait of Hormuz and the removal of the US naval blockade, developments that markets viewed as positive for global oil supplies.
International benchmark Brent crude fell nearly 5 per cent to around $83 a barrel. US benchmark West Texas Intermediate (WTI) crude dropped more than 5 per cent to around $80 per barrel.
Market participants said lower oil prices could ease inflationary pressures and improve growth prospects for economies heavily dependent on energy imports.
Experts see relief for Indian economy
Market experts said the combination of easing geopolitical tensions and softer crude prices could improve India’s macroeconomic outlook.
“With the dawn of peace in West Asia, hopefully, and the consequent sharp correction in Brent crude to below $84 in early trade, the prospects for the Indian economy and stock market have turned for the better. The GDP growth rate and CPI inflation projections for FY27 can be revised in this changed scenario to 6.9 per cent and 4.6 per cent, respectively. This will have positive implications for the stock market,” market experts said.
Banking and market expert Ajay Bagga said the developments had removed a major uncertainty that had been weighing on the global economy.
“Indian markets partly rallied on these hopes on Friday and are expected to open more than a 1% up this morning on the back of the Iran peace deal and falling oil prices,” he said.
Bagga said the US and Iran were expected to sign a memorandum of understanding in Geneva later this week. He added that the proposed arrangement could be followed by discussions on Iran’s nuclear programme, sanctions relief and other long-term issues.
At the same time, he cautioned that challenges remain.
“Israel, Iranian hardliners and US hawks who see this as an incomplete deal remain the threat,” Bagga said.
Asian markets join global rally
The positive mood extended across Asia.
Japan’s Nikkei gained nearly 5 per cent, South Korea’s KOSPI jumped more than 5 per cent and Hong Kong’s Hang Seng traded higher.
GIFT Nifty also signalled strength for Indian equities before the opening bell.
Technical analysts said domestic benchmarks remain in an uptrend as long as key support levels hold.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said daily and weekly charts reflected a bullish setup.
“Technically, on daily charts, it has formed a strong reversal pattern, and on weekly charts, it has formed a long bullish candle, which is largely positive,” he said.
According to Chouhan, 23,500 on the Nifty and 74,800 on the Sensex remain important support levels for positional traders.