Mumbai: Domestic equity markets opened sharply higher on Monday after US President Donald Trump announced that a deal with Iran had been finalised and the Strait of Hormuz would be reopened.
Sensex began the session with a surge of around 1,200 points or 1.6 per cent at 76,725.27 while Nifty opened around 360 points or 1.53 per cent higher at 23,984.85.
Sectorally, Nifty Realty surged 2.59 per cent, followed by Nifty Cement, which gained 2.46 per cent, while Nifty Auto advanced 1.92 per cent.
Other major gainers included Nifty Consumer Durables (up 1.85 per cent), Nifty Oil & Gas (up 1.83 per cent) and Nifty PSU Bank (up 1.77 per cent). However, healthcare stocks underperformed, with Nifty Pharma declining 0.17 per cent and Nifty Healthcare slipping 0.05 per cent.
According to market experts, easing tensions in West Asia and the sharp correction in crude oil prices have improved the outlook for the Indian economy and equities.
“With the dawn of peace in West Asia, hopefully, and the consequent sharp correction in Brent crude to below $84 in early trade, the prospects for the Indian economy and stock market have turned for the better. The GDP growth rate and CPI inflation projections for FY27 can be revised in this changed scenario to 6.9 per cent and 4.6 per cent, respectively. This will have positive implications for the stock market,” the experts said.
On the commodities front, international benchmark Brent crude declined nearly 5 per cent to $83.05 per barrel, while US West Texas Intermediate (WTI) crude fell 5.74 per cent to around $80 per barrel.
Asian markets also traded higher, with Japan’s Nikkei gaining more than 5 per cent, South Korea’s KOSPI rising about 5 per cent and Hong Kong’s Hang Seng advancing 0.5 per cent.
Trump said on Truth Social that the deal with Iran had been completed and would bring “peace and security” to the region.
He also announced the reopening of the Strait of Hormuz and the removal of the US naval blockade, developments that investors believe could help stabilise global energy supplies.
(IANS)
