Mumbai: Indian stock markets began the week on a strong footing, with benchmark indices witnessing a sharp rally in early trade on Monday after a steep decline in global crude oil prices boosted investor confidence.
The upbeat sentiment followed US President Donald Trump’s announcement that Washington had reached an agreement with Iran to facilitate the reopening of the Strait of Hormuz, a crucial maritime route for global oil shipments. The development eased concerns over potential supply disruptions, triggering a fall in crude prices and lifting market sentiment worldwide.
Reflecting the positive momentum, the BSE Sensex surged by more than 1,100 points shortly after the opening bell, while the NSE Nifty climbed around 350 points as investors rushed to buy across sectors.
Energy-intensive industries, including aviation, automobiles and paints, witnessed strong buying interest amid expectations that lower crude prices could improve corporate profitability and ease inflationary pressures. Banking and financial stocks also contributed significantly to the early gains.
The foreign exchange market mirrored the optimism, with the Indian rupee recording a sharp appreciation against the US dollar. The domestic currency opened at 94.68 per dollar, strengthening by 79 paise from its previous closing level of 95.11 on Friday.
Market participants said the decline in oil prices could help reduce India’s import bill and improve macroeconomic stability, providing additional support to equities. Analysts believe easing geopolitical tensions in West Asia have reduced immediate concerns surrounding energy security, encouraging investors to shift back towards risk assets.
Global markets also responded positively to the diplomatic breakthrough, as hopes of a sustained de-escalation in the region improved the outlook for international trade and commodity supplies.
Investors will now closely watch further details surrounding the US-Iran agreement and its implementation, as well as upcoming economic data and corporate developments that could influence market direction in the coming sessions.
