Share Markets Celebrate US-Iran Peace Deal: Sensex Over 700 Points Up, Nifty Above 23,850

Investor confidence received a significant boost after Washington and Tehran announced a framework aimed at ending the four-month-long conflict in West Asia.

The Indian rupee also benefited from the easing geopolitical concerns.

Source : ABPLive

Indian equity benchmarks ended sharply higher on Monday, extending gains through the session as investors cheered the announcement of a peace agreement between the United States and Iran, a development that eased concerns over global energy supplies and boosted risk appetite across markets.

The BSE Sensex settled trading around 76,250, rallying more than 700 points, while the NSE Nifty50 rang the closing bell above 23,850, jumping over 200 points, as of 9:15 AM.

The rally was driven by a broad-based buying spree across sectors after the breakthrough in West Asia reduced fears of a prolonged conflict and triggered a sharp correction in crude oil prices.

US-Iran Peace Pact Lifts Global Sentiment

Investor confidence received a significant boost after Washington and Tehran announced a framework aimed at ending the four-month-long conflict in West Asia.

According to reports, both countries have agreed to halt military operations, while discussions on broader issues are expected to continue through diplomatic channels. The agreement has also raised hopes of smoother energy supplies through the Strait of Hormuz, a critical route for global oil shipments.

The easing of geopolitical tensions triggered a relief rally across global equity markets and improved sentiment in risk assets.

Crude Oil Slides As Hormuz Concerns Ease

One of the biggest positives for markets came from a sharp decline in crude oil prices.

Brent crude futures fell more than 3 per cent to trade near $84 per barrel, as traders welcomed the prospect of the Strait of Hormuz reopening and a reduction in supply-chain disruptions.

Lower oil prices are particularly beneficial for India, which imports the bulk of its crude requirements. A sustained decline in energy costs could ease inflationary pressures, support the rupee and improve corporate margins across multiple sectors.

Rupee Strengthens As Risk Appetite Returns

The Indian rupee also benefited from the easing geopolitical concerns.

The domestic currency strengthened against the US dollar as lower crude oil prices reduced concerns over India's import bill and improved expectations for foreign capital inflows. Currency stability added another layer of support to domestic equities.

Pharma Stocks Buck The Trend

While most sectors participated in the rally, healthcare and pharmaceutical stocks underperformed relative to the broader market.

Investors largely rotated into sectors expected to gain more directly from lower oil prices and improving economic sentiment, leaving defensive pockets of the market lagging behind.