Indian equity markets ended higher for the second straight session, supported by positive global cues and a sharp decline in crude oil prices.
The BSE Sensex surged 736.38 points, or 0.97 percent, to close at 76,264.33. During the day, it rallied as much as 1,293 points to touch an intraday high of 76,821.07.
The NSE Nifty gained 231 points, or 0.98 percent, to settle at 23,853.90. It briefly crossed the 24,000 mark during trading and touched a high of 24,011.40.
Peace Deal Lifts Global Sentiment
Investor sentiment improved after reports confirmed that the US and Iran had finalised an agreement to end their 107-day conflict.
The agreement is expected to reopen the Strait of Hormuz, one of the world’s most important oil shipping routes. The development eased concerns over disruptions in global energy supplies.
US President Donald Trump announced the breakthrough on Truth Social, while officials indicated that the formal signing of the agreement is scheduled for June 19 in Switzerland.
Crude Oil Prices Fall Sharply
One of the biggest triggers for the market rally was the sharp correction in crude oil prices.
Brent crude, the global oil benchmark, fell nearly 5 percent and slipped to around USD 82.90 per barrel, its lowest level in almost three months.
Lower oil prices are seen as a major positive for India because the country imports most of its crude oil requirements. Cheaper oil can help reduce inflation, improve the trade balance and support economic growth.
Global Markets Join the Rally
Asian markets witnessed a strong rally after the peace announcement.
South Korea’s Kospi jumped more than 5 percent, while Japan’s Nikkei 225 gained nearly 5 percent. Markets in Shanghai and Hong Kong also ended higher.
European markets traded in positive territory, extending the global risk-on sentiment.
Top Gainers and Losers
Among Sensex stocks, Trent, InterGlobe Aviation, Bajaj Finserv, UltraTech Cement, Eternal and Maruti Suzuki were among the biggest gainers.
On the other hand, NTPC, ICICI Bank, Asian Paints and Hindustan Unilever ended lower.
Meanwhile, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 1,082 crore in the previous trading session. Despite this, strong domestic and global sentiment helped markets maintain their upward momentum.