Sensex Up 736 Points, Rupee Hits One-Month High As Oil Prices Tumble

Indian equity benchmarks extended gains for a second consecutive session on Monday as improving global risk sentiment following the United States-Iran peace agreement boosted investor confidence. Softer crude oil prices, a stronger rupee and expectations of easing foreign outflows supported buying across sectors, although profit-booking at higher levels trimmed some of the day's gains.

The BSE Sensex rose 736 points to close at 76,264, while the NSE Nifty 50 advanced 231 points to settle at 23,854. The Nifty Bank index gained 384 points to end at 57,199, while the Nifty Midcap index outperformed the benchmarks, climbing 782 points to close at 61,550.

Market breadth remained robust, with advancing shares outnumbering declining stocks by nearly four-to-one on the NSE. Fourteen Nifty constituents gained more than 2%, led by Larsen & Toubro, Reliance Industries, Mahindra & Mahindra and Maruti Suzuki.

The rally was broad-based, with all major sectoral indices, except pharma and healthcare, ending in positive territory. Realty stocks led the gains, with the Nifty Realty index surging nearly 4%. Auto, metal and consumer durables indices rose around 2% each. Banking stocks also remained key contributors to the market's advance.

Among individual stocks, Shriram Finance, Trent, HDFC Life, Eicher Motors and Bajaj Finserv emerged as the top gainers, while NTPC, ONGC, Bajaj Auto, ICICI Bank and Hindalco Industries were among the laggards.

The Nifty IT index snapped its eight-session losing streak, aided by a nearly 3% rise in Coforge and gains across select technology stocks. Oil marketing companies also attracted buying interest after Brent crude prices fell more than 5%, while upstream oil producers came under pressure due to concerns over lower realisations.

Crude, Rupee Support Sentiment

Investor sentiment improved significantly after Washington and Tehran confirmed a framework agreement to end hostilities and reopen the Strait of Hormuz, easing concerns over global energy supply disruptions.

The rupee strengthened sharply, ending 40 paise higher at 94.71 against the US dollar, compared with Friday's close of 95.11.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, the rupee gained on expectations that normalisation of crude flows through the Strait of Hormuz would reduce pressure on India's import bill, improve current account expectations and support capital market sentiment. He added that sustained positive developments could pave the way for further appreciation in the domestic currency in the coming weeks.

Vinod Nair, Head of Research at Geojit Investments, said the interim US-Iran peace agreement has significantly improved investor sentiment and triggered a broad-based recovery in equities. He noted that crude oil prices falling below $85 per barrel have eased inflation concerns, improved earnings visibility for FY27 and strengthened the outlook for growth-oriented sectors such as autos, industrials, capital goods and real estate.

Technical View

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty witnessed a phase of consolidation after opening with a significant gap-up but managed to hold above the crucial 23,800 level.

According to De, the near-term sentiment remains positive as long as the index sustains above 23,800. He expects the Nifty to move towards the 24,000-24,200 zone in the coming sessions, while a break below 23,800 could trigger a phase of consolidation and cap immediate upside momentum.

Apart from equities, gold prices remained supported despite improving risk sentiment. Trivedi said investors continue to monitor progress on the proposed June 19 agreement and the upcoming US Federal Reserve policy meeting. He expects gold to trade in the ₹1,51,500-₹1,55,500 range in the near term while diplomatic negotiations remain on track.

With crude prices easing, the rupee strengthening and geopolitical risks moderating, market participants will now closely track the formalisation of the US-Iran agreement and upcoming global central bank commentary for further direction.