Markets surged more than 1% on Monday, according to media reports, as easing geopolitical tensions linked to US–Iran talks and a sharp fall in crude oil prices boosted global investor sentiment.
The S&P BSE Sensex rose 1,073.61 points, or 1.42%, to close at 76,488.96, while the NSE Nifty50 gained 250.30 points, or 1.06%, to end at 23,969.60. The Sensex briefly crossed the 76,400 level for the first time in two weeks.
Sentiment improved after US President Donald Trump said Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that could reopen the Strait of Hormuz, a key global energy shipping route. The development raised expectations of reduced supply disruptions and lower energy costs.
Crude oil prices fell sharply, with Brent crude down 5.65% at $97.69 per barrel and West Texas Intermediate (WTI) crude declining 5.76% to $91.04 per barrel. The Indian rupee also strengthened 0.5% to 95.23 against the US dollar.
Broader markets outperformed benchmark indices, with the Nifty Midcap 100 rising 0.94% and the Nifty Smallcap 100 gaining 1.37%. The India VIX fell 6.74%, indicating easing volatility.
Among sectoral indices, Nifty PSU Bank was the top gainer, up 2.90%, followed by Nifty Financial Services, which rose 2.18%, and Nifty Private Bank, which advanced 2.09%. Nifty Auto gained 1.71%, while Nifty Realty rose 1.50%. Nifty Consumer Durables and Nifty Oil & Gas also closed higher.
On the Sensex, Bajaj Finance led gainers with a 2.80% rise. Larsen & Toubro added 2.71%, HDFC Bank gained 2.67%, Eternal Ltd advanced 2.40% and Bajaj Finserv rose 2.37%. State Bank of India, ICICI Bank and Mahindra & Mahindra also posted gains.
Among losers, Infosys slipped 0.49%, Tata Consultancy Services fell 0.41%, Sun Pharmaceutical Industries declined 0.21% and Hindustan Unilever edged down 0.07%.
Vinod Nair, head of research at Geojit Investments Ltd, said markets were driven higher by a correction in crude oil prices and expectations of progress on a US–Iran understanding.
He said large-cap stocks led the rally, supported by relatively attractive valuations, while financials outperformed on strong quarterly earnings. Auto stocks remained steady, and realty shares saw renewed buying after recent declines.
Nair added that global yields softened modestly and the rupee appeared to have stabilised, supported by comments from the Reserve Bank of India noting that the currency is undervalued, although a sustained trend is yet to be confirmed.
He said the sustainability of the rally will depend on credible de-escalation in geopolitical tensions and continued stability in crude oil prices.
Disclaimer: This content is based on media reports and market data available at the time of reporting and is for informational purposes only. Investors are advised to consult a qualified financial expert before making any investment decisions. VisionMP is not responsible for any loss arising from the use of this information.
