Indian shares climb on Gulf peace deal tracking global rally
- Nifty 50 rose 0.98% to 23,853.90, while the BSE Sensex added 0.97% to 76,264.33
Indian shares closed higher on Monday, tracking a global rally, as oil prices tumbled after the U.S. and Iran said they had reached an initial agreement to end the war and resume traffic through the Strait of Hormuz.
The two will sign a memorandum of understanding in Switzerland on Friday, said Pakistani Prime Minister Shehbaz Sharif, whose country served as a mediator in the negotiations.
“Now that the Iran war appears to be nearing an end, investors have a significant source of comfort,” said Gaurav Bhandari, chief executive officer at Monarch Networth Capital.
The benchmark Nifty 50 rose 0.98% to 23,853.90, while the BSE Sensex added 0.97% to 76,264.33, gaining about 3% and 3.3%, respectively, in two sessions.
“Indian equities, in particular, could be set for a strong four-to-six months, provided monsoon risks recede,” said Gaurav Bhandari, who expects the benchmark Nifty 50 to reach the 27,000-28,000 range by year-end. The index has lost 8.7% year-to-date.
India’s 10-year bond yield fell and the rupee gained 0.41% to 94.71 per dollar.
“With the RBI’s recent measures helping stabilise the rupee, inflation remaining under control, the record $30 billion in foreign outflows in 2026 so far could start to reverse,” Monarch’s Bhandari said.
Fourteen of the 16 major sectors advanced. The broader small-caps and mid-caps rose 1.1% and 1.3%, respectively.
Infrastructure major Larsen & Toubro, which has significant revenue exposure to the Middle East, gained 3%.
Asian markets jumped 2.7%, while Brent crude dropped 5.2% to about $82.8 a barrel, its lowest level since March.
Lower oil prices are a positive for India, the world’s third-largest oil importer, as they help ease pressure on inflation, the rupee and the country’s trade deficit.
Oil-sensitive stocks rallied, with refiners BPCL, HPCL and Indian Oil, cement makers UltraTech Cement, Ambuja Cements and ACC, tyre firms MRF, CEAT and JK Tyre, and airline IndiGo all advancing.
Aurobindo Pharma fell 4.7% after the U.S. drug regulator flagged serious concerns at its unit’s facility in Telangana.
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