Nifty Tops 24,100, Sensex Gains 360 Points On Easing West Asia Concerns

Indian benchmark indices opened higher on Monday, tracking gains across Asian markets after fresh progress in US-Iran peace negotiations eased concerns over a breakdown in talks and supported risk appetite globally.

At around 9:30 am, the Sensex was up 360.85 points, or 0.47%, at 77,163.75, while the Nifty 50 gained 106.40 points, or 0.44%, to trade at 24,119.50. The positive opening followed a strong indication from GIFT Nifty, which was trading nearly 80 points higher ahead of the opening bell.

The gains came after a joint statement from Qatar and Pakistan said the first round of US-Iran negotiations had ended with progress on a roadmap aimed at reaching a final agreement within 60 days.

Crude Below $80 Supports Market Mood

Investor sentiment was further aided by softer crude oil prices. Brent crude remained below the crucial $80-per-barrel mark despite lingering geopolitical uncertainty, providing relief to oil-importing economies such as India.

Broader Asian markets rose around 0.9%, while Brent crude slipped 1.3% in early trade. Lower oil prices are seen as positive for India as they help ease inflationary pressures, improve the current account balance and support the rupee.

Although reports suggested an Iranian delegation briefly walked out of talks in Switzerland following renewed comments from US President Donald Trump, negotiations are reportedly continuing through mediators, helping maintain optimism in financial markets.

IT Stocks Lead The Recovery

All 16 major sectoral indices traded in positive territory at the open, with information technology stocks leading the rebound after last week's sharp correction.

Cipla emerged as the top gainer on the Nifty, rising nearly 2%, while Tech Mahindra advanced 1.7%. Infosys, HCL Technologies and TCS gained between 1% and 1.3%.

The Nifty IT index had been the worst-performing sector last week, declining about 1% amid concerns over global technology spending following Accenture's cautious outlook. Monday's gains indicated bargain buying in the sector.

The broader market also remained firm, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.4% and 0.5%, respectively.

Rupee Strength, FII Flows Remain Key

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the market was taking comfort from the continued decline in crude prices and the appreciation of the rupee.

"Despite the confusing news coming from the West Asia talks, Brent crude is trading below $80. This market signal indicates that further flare-up in the conflict is unlikely. However, the situation remains fluid and has to be watched closely," he said.

Vijayakumar added that the rupee's recovery from 96.96 against the dollar in May to around 94.32 currently, along with easing foreign portfolio outflows, could continue to support market resilience. He noted that momentum remains concentrated in midcap and smallcap stocks due to their stronger earnings growth prospects, while Bank Nifty continues to remain fundamentally strong.