Falling crude oil prices and improving global sentiment after the Iran-US peace understanding triggered a broad-based rally across Indian equities
Indian equity markets opened sharply higher on Monday as easing geopolitical tensions in the Middle East and a steep decline in crude oil prices boosted investor sentiment across global markets.
The benchmark BSE Sensex surged more than 1,200 points at the opening bell, while the NSE Nifty reclaimed the crucial 24,000 mark during early trade. The rally followed the announcement of a peace understanding between the United States and Iran, which eased concerns over disruptions in global energy supplies and pushed Brent crude prices below USD 84 per barrel.
The 30-share Sensex jumped 1,197.32 points, or 1.58 per cent, to open at 76,725.27. The Nifty gained 361.95 points to begin the session at 23,984.85 and briefly crossed the 24,000 level in intraday trade.
The positive momentum extended beyond frontline indices, with broader markets also witnessing strong buying interest. The BSE Midcap Select Index advanced sharply, while the Smallcap Select Index gained over 1.4 per cent during early trading.
Market participants drew confidence from signals that tensions in the Gulf region may ease following the Iran-US agreement, reducing fears over energy supply disruptions through the Strait of Hormuz — one of the world’s most critical oil shipping routes.
Gift Nifty had earlier signalled a strong start, opening significantly higher than its previous close and indicating bullish sentiment ahead of the market opening.
Institutional activity also remained supportive. While Foreign Institutional Investors (FIIs) continued to remain net sellers, the pace of outflows moderated. Domestic Institutional Investors (DIIs) continued their buying streak, helping offset foreign selling pressure and providing stability to the market.
Among Sensex constituents, all 30 stocks traded in positive territory during early trade. Eternal emerged as the top gainer, followed by Asian Paints, IndiGo, Larsen & Toubro and HDFC Bank.
Market breadth remained firmly positive, with advancing stocks vastly outnumbering decliners on the NSE, reflecting broad participation in the rally.
The upbeat sentiment was mirrored across Asia. Major indices in Japan, Hong Kong, South Korea and China posted strong gains as investors welcomed the prospect of reduced geopolitical risk and lower energy costs.
Analysts said the combination of improving market breadth, easing volatility, supportive derivatives positioning and declining crude prices has strengthened the near-term outlook for equities. They added that sustained stability in oil markets could further support investor confidence and corporate earnings expectations in the coming weeks.
For all the latest updates, download PGurus App.
