Sensex jumped 855 points as crude slipped below $100 per barrel.
Nifty neared 24,000 while ₹5 lakh crore investor wealth was added.
US-Iran deal hopes, stronger rupee and lower volatility boosted market sentiment.
Indian benchmark indices opened sharply higher on Monday, extending gains as optimism surrounding a potential US-Iran peace agreement, a steep fall in crude oil prices and improving global sentiment lifted investor confidence. Broad-based buying across sectors pushed benchmark indices nearly 1% higher, while easing volatility and a stronger rupee added further support.
At around 9:30 am, the BSE Sensex surged nearly 855 points to 76,270, while the NSE Nifty50 gained 251 points to trade at 23,971, moving closer to the key 24,000 mark. The rally added nearly Rs 5 lakh crore to the market capitalisation of BSE-listed firms, taking the total valuation close to Rs 468 lakh crore.
1 May 2026
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Market breadth remained firmly positive. Around 2,116 stocks advanced on the NSE against only 456 declines, indicating widespread participation. Investor sentiment also improved sharply as India VIX, the market's volatility gauge, tumbled over 4% to 17.15.
Among Sensex constituents, Mahindra & Mahindra, Bajaj Finance, HDFC Bank, Larsen & Toubro, Bajaj Finserv, Eternal, Maruti Suzuki and UltraTech Cement rose around 2% each and led the gains. On the other hand, TCS, NTPC, Sun Pharma and Infosys traded with marginal losses.
Oil marketing companies also witnessed strong buying momentum. Shares of Indian Oil, BPCL and HPCL rallied over 4% after crude oil prices declined sharply.
Oil Crash Sparks Relief Rally
The biggest trigger for the market rally came from a steep decline in global crude prices after hopes of a US-Iran peace breakthrough strengthened.
Brent crude futures dropped more than 5% to trade below the psychologically important $100 per barrel mark at around $98. WTI crude futures also slipped nearly 6% to $91.30 a barrel.
The decline followed comments from US President Donald Trump, who said Washington and Iran had "largely negotiated" a memorandum of understanding on a peace agreement that could reopen the Strait of Hormuz. Reports also indicated that negotiators had agreed on broad principles of a deal.
The Strait of Hormuz remains one of the world's most critical shipping routes, handling over one-fifth of global oil and gas supplies. Any easing of tensions and resumption of normal trade flows through the route is viewed positively by global markets.
Global Markets, Rupee Add To Optimism
Global markets also traded higher amid improving risk appetite. Japan's Nikkei surged around 3% and crossed the 65,000 mark for the first time. Taiwan's benchmark index rallied more than 3%, while China's Shanghai Composite advanced nearly 1%.
Wall Street also provided positive cues. US futures indicated another firm session after major indices ended higher last week.
The Indian rupee also strengthened sharply and opened 0.37% higher at a two-week high of 95.34 against the US dollar, compared with its previous close of 95.69. The rebound followed a series of record lows witnessed in recent sessions.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said falling crude and a strengthening rupee could potentially alter market sentiment.
"We are starting the week on a positive note. Crude has dipped by $5 to below $100 on expectations that US and Iran are close to a deal. If this expected deal holds and crude drifts down, that can turn out to be a turning point for the market," he said.
He added that improving quarterly earnings and the resilience shown by domestic markets despite recent volatility reflect confidence in India's underlying economic strength.
