Sensex jumps 1,040 points, Nifty gains 317 points on US-Iran peace deal
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Peace deal lifts global risk appetite as lower crude and a stronger rupee fuel a broad-based rally across metals, autos, and financials.
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The Indian equity benchmarks opened sharply higher on Monday after a breakthrough in the Middle East eased concerns over global energy supplies and pushed crude oil prices lower. The BSE Sensex jumped 1,039.87 points, or 1.38%, to 76,567.82 in early trade, while the NSE Nifty50 gained 317.40 points, or 1.34%, to 23,940.30.
The markets reacted positively after U.S. President Donald Trump announced a peace agreement with Iran, signalling an end to hostilities and the reopening of the Strait of Hormuz. Trump, in a Truth Social post said, “Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade.”
Other reasons for markets to react positively was brrent crude falling to around $83.8 per barrel in early Asian trade. The Indian currency opened stronger today, opening 43 paise stronger against the U.S. dollar.
Shriram Finance soars nearly 5%; IndiGo, Tata Motors Passenger Vehicles gain
Among individual stocks, Shriram Finance emerged as the top gainer, rising 4.90% to ₹1,001.70. InterGlobe Aviation, which operates IndiGo, advanced 4.33% to ₹4,913.50. Tata Motors Passenger Vehicles climbed 4.19% to ₹406.35, while Eternal gained 3.88% to ₹253.25. Bajaj Finserv added 3.62% to trade at ₹1,750.20.
Amongst sectors, Nifty Metal led the gains with a rise of 3.39%, followed by Nifty Realty, up 2.56%, and Nifty Auto, which gained 2.53%. Nifty Consumer Durables climbed 2.36%, while Nifty Finserv 25/50 and Nifty Financial Services advanced 2.07% and 1.96%, respectively.
Nifty PSU Bank rose 1.43%, with Nifty Bank adding 1.16%. Nifty IT, Nifty Private Bank, Nifty FMCG and Nifty Media also traded higher. Healthcare-related counters like Nifty Pharma and Nifty Healthcare slipping 0.36% and 0.35%, respectively.
Vedanta group stocks are expected to remain in focus as four newly created entities make their market debut following the company’s demerger. Vedanta Aluminium Metal, Vedanta Oil & Gas, Vedanta Power and Vedanta Iron & Steel begin trading on Monday, marking a key milestone in the group’s restructuring exercise.
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Analysts suggest that the peace agreement bolstered investment sentiment. "Investor sentiment received a significant boost after U.S. President Donald Trump announced that the agreement is expected to be formally signed on Friday, raising hopes of a lasting de-escalation in the Middle East and improving global risk appetite," said Ponmudi R, CEO, Enrich Money.
According to him, the Indian Rupee strengthening, with the combination of lower crude oil prices and improving global sentiment has supported the currency's recovery and helped improve confidence in domestic financial markets.
