Indian Shares Rally on US-Iran Peace Deal Prospects

Indian Shares Rise as Oil Prices Drop on US-Iran Peace Deal Hopes

Indian stock markets opened higher on Monday, driven by a sharp decline in crude oil prices after the US and Iran signaled progress toward a peace agreement. Brent crude fell below $100 per barrel for the first time in more than two weeks, easing inflationary pressures on India’s import-heavy economy.

The benchmark Nifty 50 index gained 0.94% to 23,941.85, while the BSE Sensex rose 1.02% to 76,194.32. All 16 major sectoral indices traded in the green, with oil marketing companies leading the rally.

BPCL, HPCL, and Indian Oil surged between 4% and 4.5%, benefiting from lower input costs and recent hikes in diesel and petrol prices. Index heavyweights HDFC Bank and ICICI Bank added 2% and 1.3%, respectively, while Eicher Motors climbed 5.7% after posting better-than-expected quarterly profits.

The broader market also participated in the upswing, with the small-cap index advancing 1.2% and the mid-cap index up 0.7%. Analysts cautioned, however, that the Nifty could face resistance near the 24,000 level as investors await concrete developments in the peace talks.

Global sentiment improved after President Trump stated that Washington and Tehran had “largely negotiated” a memorandum of understanding that could reopen the strategic Strait of Hormuz. Asian stocks rose 1.3% in tandem.