Gulf gains: Sensex, Nifty start the week with a roar
Crude tumbles, markets rally: Indian markets hit multi-week highs as US–Iran peace deal is sealed
Indian equity markets experienced a significant surge on Monday, with the Sensex and Nifty both climbing sharply following the announcement that the United States and Iran have finalized a deal to end their 107-day war and reopen the vital Strait of Hormuz. This peace agreement, set to be formally signed on June 19, led to an immediate drop in oil prices, with Brent crude falling approximately 4.55% to $83.36 a barrel, which is beneficial for India, the world's third-largest oil importer, by easing inflationary pressures, strengthening the rupee, and reducing the trade deficit. Consequently, India's 10-year bond yield fell to its lowest point since March 25, and the rupee appreciated by 0.52% to 94.61 per dollar, while most major sectors and broader markets, including mid-caps and small-caps, also saw gains, with companies like InterGlobe Aviation, Bajaj Finance, and Larsen & Toubro among the top performers, despite a substantial year-to-date outflow of Foreign Portfolio Investor funds.
Indian equity markets experienced a significant surge on Monday, with the Sensex and Nifty both climbing sharply following the announcement that the United States and Iran have finalized a deal to end their 107-day war and reopen the vital Strait of Hormuz. This peace agreement, set to be formally signed on June 19, led to an immediate drop in oil prices, with Brent crude falling approximately 4.55% to $83.36 a barrel, which is beneficial for India, the world's third-largest oil importer, by easing inflationary pressures, strengthening the rupee, and reducing the trade deficit. Consequently, India's 10-year bond yield fell to its lowest point since March 25, and the rupee appreciated by 0.52% to 94.61 per dollar, while most major sectors and broader markets, including mid-caps and small-caps, also saw gains, with companies like InterGlobe Aviation, Bajaj Finance, and Larsen & Toubro among the top performers, despite a substantial year-to-date outflow of Foreign Portfolio Investor funds.
Indian equity markets experienced a significant surge on Monday, with the Sensex and Nifty both climbing sharply following the announcement that the United States and Iran have finalized a deal to end their 107-day war and reopen the vital Strait of Hormuz. This peace agreement, set to be formally signed on June 19, led to an immediate drop in oil prices, with Brent crude falling approximately 4.55% to $83.36 a barrel, which is beneficial for India, the world's third-largest oil importer, by easing inflationary pressures, strengthening the rupee, and reducing the trade deficit. Consequently, India's 10-year bond yield fell to its lowest point since March 25, and the rupee appreciated by 0.52% to 94.61 per dollar, while most major sectors and broader markets, including mid-caps and small-caps, also saw gains, with companies like InterGlobe Aviation, Bajaj Finance, and Larsen & Toubro among the top performers, despite a substantial year-to-date outflow of Foreign Portfolio Investor funds.
Indian equity markets opened the week on a roaring note on Monday, with both benchmark indices surging sharply after the United States and Iran finalised a deal to end their 107-day war and reopen the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world's oil supplies flow. The Sensex hit an intraday morning high of 76,821.07, up 1,293 points from Friday's close, while the Nifty climbed 388 points to as high as 24,011.40 ahead of lunch.
The peace agreement will be formally signed as a memorandum of understanding in Switzerland on June 19, and the announcement was made by US President Donald Trump on Truth Social on Sunday evening.
The most immediate market impact was a sharp fall in oil prices. Brent crude dropped approximately 4.55 per cent to $83.36 a barrel, its lowest level since March.
For India, the world's third-largest oil importer, cheaper crude directly eases pressure on inflation, the rupee, and the country's trade deficit. India's 10-year bond yield slid to its lowest since March 25, while the rupee strengthened 0.52 per cent to 94.61 per dollar.
Fourteen of the 16 major sectors advanced. Among the biggest winners on the Sensex were InterGlobe Aviation, Eternal, Bajaj Finance, Bajaj Finserv, UltraTech Cement, and Larsen & Toubro, the last of which gained 3.3 per cent, reflecting its significant revenue exposure to the Middle East.
HDFC Bank, among the heavyweights on both benchmark indices, jumped 2 per cent to lead financial sector gains.
Broader markets also advanced, with mid-caps and small-caps rising 1.4 and 1.6 per cent, respectively. Foreign Portfolio Investors (FPIs) have offloaded a record $30.7 billion in domestic equities so far this year.