Indian equity markets closed sharply higher on Monday, with Sensex up 1073 points and Nifty gaining 312 points. The surge was driven by optimism over a potential US-Iran peace agreement, which also caused crude oil prices to fall below $100.
The domestic equity markets closed sharply higher on Monday as improving optimism around a possible peace agreement between the United States and Iran boosted investor sentiment globally and eased concerns over energy prices. The NSE Nifty 50 index closed at 24,031.70, gaining 312.40 points or 1.32 per cent, while the BSE Sensex surged 1,073.61 points or 1.42 per cent to settle at 76,488.96.
Expert Take on Market Rally
According to market experts, investor confidence improved significantly after former US President Donald Trump stated over the weekend that a deal between the United States and Iran was "largely negotiated".
Ponmudi R said optimism surrounding a potential US-Iran agreement revived risk appetite across global markets. He said, "Indian equity markets ended the session firmly higher as optimism surrounding a potential U.S.-Iran agreement revived risk appetite across global markets. Investor sentiment improved significantly after Donald Trump stated over the weekend that a deal was "largely negotiated", encouraging markets to increasingly price in the possibility of a near-term diplomatic resolution"
He added that a more durable recovery in markets would depend on the successful implementation of a lasting peace agreement and the credible reopening of the Strait of Hormuz, which remains central to easing the ongoing energy crisis.
Impact on Oil and Rupee
The easing geopolitical concerns also led to a sharp moderation in crude oil prices. Brent crude prices fell below USD 100 per barrel and were trading at USD 98.31 per barrel at the time of filing this report, down more than 5 per cent.
The Indian rupee also strengthened against the US dollar, recovering 48 paise to trade at Rs 95.21 after weakness witnessed last week.
Sectoral Performance
On the sectoral front, almost all major NSE sectoral indices closed in positive territory except FMCG. Nifty PSU Bank emerged as one of the top gainers, rising 2.73 per cent, while Nifty Private Bank gained 2.02 per cent. Nifty Auto rose 1.66 per cent, Nifty Realty gained 1.54 per cent, and Nifty Metal advanced 0.5 per cent. Nifty Pharma ended 0.38 per cent higher while Nifty IT closed with gains of 0.28 per cent.
Precious Metals Gain
Precious metals also remained firm during the session. Gold prices rose 0.33 per cent to Rs 1,59,210 per 10 grams for 24 karat gold, while silver prices surged 1.68 per cent to Rs 2,76,410 per kilogram.
Gains in Asian Markets
Asian markets also witnessed strong gains on Monday amid improving global risk sentiment. Japan's Nikkei 225 index surged 2.76 per cent to close at 65,140, while Taiwan's weighted index jumped 3.15 per cent to 43,644 levels. Hong Kong's Hang Seng index gained 0.85 per cent to close at 25,603, while Singapore's Straits Times index ended 0.10 per cent higher at 5,073.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)
