Mumbai: Indian equity markets opened the week on a strong note, with the BSE Sensex climbing more than 400 points and the Nifty 50 moving above the 24,100 mark, driven by optimism surrounding progress in U.S.-Iran peace talks, easing crude oil prices and renewed foreign investor interest.
The benchmark indices gained around 0.5% in early trade, while broader market indices also advanced. Market sentiment improved after the first round of U.S.-Iran negotiations in Switzerland resulted in progress toward a roadmap for a final agreement within 60 days, raising hopes of reduced geopolitical tensions in the Middle East.
A key factor supporting the rally was the decline in crude oil prices. Brent crude slipped below recent highs as investors anticipated improved stability in the region and fewer disruptions to global energy supplies. Lower oil prices are particularly beneficial for India, one of the world’s largest crude oil importers, as they help reduce inflationary pressures and improve the country’s trade balance.
Another major contributor to the market’s rise was buying interest in heavyweight stocks. Shares of Reliance Industries gained after investors reacted positively to developments surrounding the company’s businesses, including the proposed IPO of Jio Platforms, which is expected to be one of India’s largest public offerings.
Information technology stocks also supported the rally, recovering from recent weakness and emerging as one of the best-performing sectors during the session. Positive global market cues and improved risk appetite encouraged investors to return to growth-oriented sectors.
Market participants were further encouraged by strong foreign institutional investor (FII) activity. Foreign investors reportedly purchased Indian equities worth nearly ₹4,859 crore in the previous session, marking the strongest inflow since February and reinforcing confidence in domestic markets.
Analysts believe the progress in U.S.-Iran negotiations has reduced concerns about disruptions in the Strait of Hormuz and global energy supplies. However, they caution that factors such as monsoon performance, inflation trends and global interest rate expectations will continue to influence market direction in the coming weeks.
With geopolitical tensions easing and crude oil prices retreating, investors are increasingly optimistic that Indian markets could sustain their recovery, provided global conditions remain stable.
