The BSE Sensex rallied 940 points on Monday, driven by a sharp decline in global crude oil prices amid signs of progress in nuclear talks between the United States and Iran. The benchmark index closed at 62,272.68, up 1.53%, while the NSE Nifty gained 278 points to settle at 18,477. The drop in oil prices eased concerns over inflation and fiscal deficit, prompting buying across sectors.
Oil Prices Slump on Hopes of Deal
Brent crude futures fell over 3% to below $72 per barrel, their lowest in several weeks, as traders bet on a potential agreement that could lift sanctions on Iranian oil exports. Analysts said a deal could add roughly 1 million barrels per day to global supply, helping to cool prices that have been elevated due to geopolitical tensions.
Market Broadly Higher
All major sectoral indices ended in the green, with metal, banking, and auto stocks leading the rally. Reliance Industries, HDFC Bank, and ICICI Bank were among the top contributors to the Sensex gain. The market breadth was positive, with 2,100 stocks advancing versus 1,300 declining on the BSE.
Investors also drew comfort from a stable rupee and hopes of a normal monsoon in India, which could keep inflation in check. Foreign portfolio investors turned net buyers after weeks of selling, adding to the positive momentum.
Analysts caution that while the sentiment is upbeat, the sustainability of the rally depends on the actual outcome of the US-Iran talks and global interest rate trends. The next trigger for markets will be the US Federal Reserve's policy meeting later this month.
