Iran-US Peace Deal
Cloud TV Desk: Indian equity markets witnessed a strong rally on Monday after signs of a peace agreement between Iran and the United States triggered a sharp decline in global crude oil prices, boosting investor sentiment and strengthening the Indian rupee.
The benchmark BSE Sensex surged 1,103.18 points to reach 76,631.13 in early trade, while the NSE Nifty gained 329.65 points to touch 23,952.05, marking an increase of nearly 1.4 percent. The sharp rally added approximately ₹8.25 lakh crore to investors’ wealth within a few hours of market opening.
Market analysts attributed the gains primarily to easing geopolitical tensions in the Middle East following the announcement of a peace understanding between Washington and Tehran. The development led to the reopening of the strategically important Strait of Hormuz and the lifting of restrictions on energy shipments through the route.
As oil supplies began returning to normal levels, crude prices fell significantly. Brent crude dropped 4.1 percent to around $83 per barrel, its lowest level since March. Meanwhile, U.S. West Texas Intermediate (WTI) crude declined by 4.72 percent to $80.87 per barrel.
The fall in oil prices is particularly beneficial for India, the world’s third-largest importer of crude oil. Lower energy costs are expected to reduce inflationary pressures, improve the country’s current account balance, and support economic growth.
Investor confidence was further boosted by the appreciation of the Indian rupee. The domestic currency strengthened by 60 paise against the U.S. dollar, trading at ₹94.58 per dollar during the session.
Sector-wise, almost all major indices traded in positive territory except pharmaceuticals and healthcare. Auto and real estate stocks emerged as top performers, gaining between 2 and 3 percent.
Among the leading gainers on the Nifty were Shriram Finance, InterGlobe Aviation, Bajaj Finserv, Trent, and Eternal. On the other hand, Apollo Hospitals, Cipla, NTPC, ONGC, and Hindalco Industries witnessed some selling pressure.
Experts believe that if geopolitical stability continues and crude oil prices remain under control, Indian markets could maintain their upward momentum in the coming weeks. The market had already shown strong optimism on Friday amid expectations of a potential Iran-US agreement, with the Sensex gaining 1,695 points and the Nifty rising more than 460 points.
With tensions in West Asia showing signs of easing, investors are hopeful that the positive trend in equities will continue, supported by lower energy costs and improving macroeconomic conditions.
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