Sensex jumps over 850 points, Nifty nears 24,000 as oil prices tumble on Iran peace deal hopes – Firstpost

Indian equity benchmarks rallied sharply in early trade on Monday after global crude oil prices fell below $100 per barrel for the first time in more than two weeks, boosting investor sentiment amid hopes of easing geopolitical tensions in West Asia.

The benchmark BSE Sensex surged 856.77 points, or 1.14 per cent, to 76,272.12 by 9:27 am, while the Nifty 50 climbed 255.90 points, or 1.08 per cent, to 23,975.20.

The rally came after US President Donald Trump said on Saturday that Washington and Iran
had “largely negotiated” a memorandum of understanding aimed at ending the ongoing conflict and reopening the Strait of Hormuz — a key global energy shipping route that handled nearly one-fifth of the world’s oil and LNG trade before the war escalated.

Brent crude futures fell nearly 5.8 per cent to around $97.50 a barrel, while WTI crude slipped below the psychologically important $100 mark, easing concerns over imported inflation and fuel costs for oil-dependent economies such as India.

Financials, autos lead broad-based rally

All 16 major sectoral indices traded in positive territory during early trade, with banking, financial and automobile stocks emerging as the biggest gainers.

Among Sensex constituents, Mahindra & Mahindra rose 2.44 per cent, while HDFC Bank gained 2.36 per cent. Shares of Bajaj Finance climbed 2.22 per cent and InterGlobe Aviation advanced 1.82 per cent.

Other notable gainers included Bajaj Finserv, Kotak Mahindra Bank, Larsen & Toubro and Maruti Suzuki India.

On the broader market front, the Nifty Midcap 100 index rose around 0.7 per cent, while the Nifty Smallcap 100 index advanced 1 per cent, reflecting improved risk appetite among investors.

Oil decline seen as positive for Indian markets

Analysts said falling crude oil prices are likely to provide relief to India’s inflation outlook, fiscal position and current account balance.

India imports more than 85 per cent of its crude oil requirements, making domestic equities highly sensitive to fluctuations in global energy prices. A sustained correction in oil prices could ease pressure on the rupee and reduce concerns over input cost inflation across sectors such as aviation, paints, logistics and consumer goods.

The easing in oil prices also lifted Asian markets, with the MSCI Asia-Pacific index rising about 1.3 per cent in early trade.

However, market participants remain cautious as the Trump administration later sought to temper expectations of an immediate breakthrough in the three-month-long conflict, indicating that negotiations were still ongoing.

IT stocks lag despite market rally

Despite the broader rally, information technology stocks remained subdued. Shares of Tata Consultancy Services slipped 0.5 per cent, while Sun Pharmaceutical Industries also traded marginally lower.

Meanwhile, investors will closely track further developments in West Asia, crude oil movements and foreign institutional investor flows through the week for additional market direction.