Benchmark equity indices Sensex and Nifty surged over 1 per cent on Monday, driven by a sharp correction in crude oil prices and a rally in global markets amid improving sentiment surrounding the US-Iran negotiations.
The 30-share BSE Sensex jumped 1,073.61 points, or 1.42 per cent, to settle at 76,488.96. During the day, it soared 1,143.72 points, or 1.51 per cent, to 76,559.07.
The 50-share NSE Nifty surged 312.40 points, or 1.32 per cent, to end at 24,031.70.
From the 30-Sensex firms, Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv, and Kotak Mahindra Bank were among the biggest winners.
In contrast, Infosys, Tata Consultancy Services, Sun Pharma and Hindustan Unilever were the laggards.
Brent crude, the global oil benchmark, tanked 5.52 per cent to USD 97.82 per barrel.
The US has made significant progress in negotiations with Iran to reopen the Strait of Hormuz, but President Donald Trump is maintaining a cautious approach and will not accept a bad deal, Secretary of State Marco Rubio said on Monday.
“Markets witnessed strong positive momentum, driven by a correction in crude oil prices amid rising expectations of a potential US-Iran deal. Global sentiment improved on reports of progress towards reopening the Strait of Hormuz, although credibility remains uncertain given frequent shifts in developments,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index ended higher. Markets were closed in South Korea and Hong Kong due to holidays.
European markets were trading higher.
US markets ended in positive territory on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,440.47 crore on Friday, according to exchange data.
In the previous session on Friday, the Sensex climbed 231.99 points, or 0.31 per cent, to settle at 75,415.35. The Nifty edged higher by 64.60 points, or 0.27 per cent, to end at 23,719.30.