Positive signs from the Iran-US peace talks boosted the Indian stock market, pushing it to its highest level in the past two weeks.
The Sensex closed at 76,488.96, surging 1,073.61 points (+1.42%).
Nifty 50 surged 312.40 points (+1.32%) to cross the crucial 24,031.70 mark.
The main reason behind the rally in the Indian market is the positive progress in the Iran-US peace talks, which has led to a sharp decline in crude oil prices.
Crude oil prices witnessed a sharp decline, with global benchmark Brent Crude falling more than 5.5% to $97.76 per barrel.
This is the first time in the past two weeks that Brent Crude prices have fallen below the $100 mark.
The fall in crude oil prices is benefiting India, as the country imports more than 80% of its crude oil needs. Lower crude prices will help reduce the country’s fiscal deficit and also support the government in controlling inflation.
Monday also brought positive news for the Indian rupee, which strengthened by 35 paise to close at 95.25 against the US dollar.
Photo: @ BSEINDIA
- Adani Power led the rally, with its shares surging an impressive 6.41% on Monday.
- In the auto sector, Eicher Motors shares witnessed a strong surge of 6.19%.
- Hindustan Petroleum shares gained 5.86% following the sharp decline in crude oil prices.
- Adani Enterprises recorded a strong recovery of 4.87% on Monday.
- GAIL India shares rose 4.91% on Monday, mainly due to optimism surrounding Iran-US talks over reopening the Strait of Hormuz.
- Sammaan Capital, a financial sector company, gained 4.40% on Monday.
Among the top five gainers in Monday’s stock market rally, three were oil and gas companies. The main reason behind this surge is the positive developments in the ongoing Iran-US conflict talks, where both countries have reportedly agreed on several key points, although no final deal has been reached yet.
If a final deal is reached between Iran and the US, Indian oil and gas stocks could witness a strong rally.
These are the companies that operate in India’s largest oil and gas sector.
Reliance Industries, ONGC, Indian Oil (IOC), Bharat Petroleum (BPCL), and GAIL (India).
