Indian shares jumped at the opening bell on Monday, following a global market rally amid a sharp decline in oil prices. This market surge comes after US President Donald Trump and Iran’s deputy foreign minister reached a preliminary agreement aimed at easing tensions and reopening shipping through the Strait of Hormuz.
Pakistani Prime Minister Shehbaz Sharif, who helped mediate the peace talks, confirmed that both nations will sign an official memorandum of understanding in Switzerland this coming Friday.
Following the breakthrough news, India’s benchmark Nifty 50 index rose 1.53% to 23,984.85, while the BSE Sensex gained 1.59% to reach 76,725.27 in early morning trading. This builds on massive gains from Friday, where both indexes jumped over 2% as investor confidence returned.
Across the rest of Asia, markets rallied nearly 3%, while Brent crude oil prices fell roughly 4.5%- 4.7% to around $83 per barrel, marking their lowest level since March. Lower oil prices are generally positive for India, which relies heavily on imports and is the world’s third-largest oil buyer.
Falling crude prices directly help the Indian economy by easing inflationary pressure, supporting the rupee, and reducing the national trade deficit. All 16 major market sectors in India advanced, with mid-cap and small-cap stocks growing 1.6% each.
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Additionally, specific businesses that rely heavily on oil as a raw material, including oil marketing companies, tyre manufacturers, paint makers, and commercial airlines, saw their stock prices jump significantly due to the major drop in fuel expenses.
