Sensex, Nifty jump nearly 2% as oil falls 4%

Market opens higher on global cues

Indian equity benchmarks rallied sharply on Monday morning, tracking gains across global markets and a steep fall in crude oil prices. The move followed reports that the United States and Iran had reached an initial agreement to end hostilities after a 107-day war. The headlines also pointed to a reopening of shipping through the Strait of Hormuz, a key route for global oil trade. Falling oil prices helped improve risk sentiment in equities, with broad-based buying seen early in the session. Investors also responded to stronger cues from Asia-Pacific and Europe, where stocks advanced at the start of trade. The relief rally reflected expectations that lower energy prices could reduce inflation pressure. Markets also reacted to official comments and updates around the timing and location of the agreement signing.

Sensex and Nifty levels across early trade

The Sensex and Nifty posted gains of around 1.5% to 2% in early trade, with multiple updates during the morning showing the rally building. In one early snapshot, the S&P BSE Sensex rose 1,213.79 points, or 1.61%, to 76,741.74, while the NSE Nifty50 climbed 360.40 points, or 1.53%, to 23,983.30. Another update put the Sensex at 76,669.26, up 1,141.31 points or 1.51%, and Nifty at 23,970.40, up 347.50 points or 1.47% at 9:17 am. Reuters data showed the Nifty 50 up 1.39% at 23,954 and the Sensex up 1.43% at 76,605.4 as of 9:43 a.m. IST. By around 11 am, the Sensex was up 1,270.75 points or 1.68% at 76,798.70, while the Nifty gained 383.05 points or 1.62% to 24,005.95. Separately, the 50-share Nifty was also reported to have surged 335.55 points to 23,956.40.

The trigger: US-Iran deal and Strait of Hormuz

The day’s key trigger was the US-Iran peace process, which traders linked directly to lower oil risk premiums. Reports said the US and Iran had finalised a deal to end their 107-day war and restore shipping through the Strait of Hormuz. The Strait is a narrow waterway through which around one-fifth of global oil supplies pass, making it a major variable for energy markets. US President Donald Trump announced the development on Truth Social on Sunday evening, according to the information provided. There were also references to an in-person signing in Switzerland and to officials saying the peace agreement would be signed on June 19 in Switzerland. Pakistani Prime Minister Shehbaz Sharif was cited as saying the two sides would sign a memorandum of understanding in Switzerland on Friday, with Pakistan described as a mediator in the negotiations. Some updates indicated markets had already priced in the possibility of a deal, but confirmation still pushed sentiment higher. Analysts cited alongside the rally urged caution, reflecting the risk that diplomacy timelines and details can shift.

Crude oil slides sharply, easing inflation concerns

Oil prices fell steeply as traders priced in lower disruption risk to Gulf supplies. Brent crude fell 4.39% to $13.50 per barrel in one market update, while US WTI crude dropped 4.84% to $10.77 per barrel. Another data point showed Brent down 4.55% at $13.36 per barrel, and separate reporting described Brent down around 5% to $13 a barrel. The move brought crude to its lowest levels in more than three months, with one update describing it as the lowest since March. Reuters also noted Brent was well below a May peak of $126.41, while still above the $17 level seen before the conflict began in late February. For India, lower crude prices are closely watched because energy imports influence inflation, the rupee, and corporate margins. The oil decline was repeatedly highlighted as the biggest immediate macro driver behind the equity bounce.

Europe and Asia join the relief rally

The rally was not limited to India, with global stocks rising on the same catalyst. European stock exchanges began the session at fresh highs as investors welcomed the US-Iran peace agreement narrative. The Stoxx 600 index was reported up 0.9% at 639, surpassing the previous record set just before the Iran conflict began. Across the Asia-Pacific region, stocks advanced as investors looked ahead to the potential reopening of the Strait of Hormuz. Reuters reporting also said major markets in Asia gained overnight, and that futures suggested Wall Street would rise by 1.3% to 2% later in the day. The same report connected the move to expectations of reduced inflationary pressure and a potentially lower need for additional interest rate increases. The combined equity and bond gains reflected a classic risk-on session driven by lower energy prices.

Friday’s surge set the stage for Monday

The Monday jump followed a strong finish to the previous session. On Friday, the Sensex jumped 1,695.40 points, or 2.30%, to settle at 75,527.95. The NSE Nifty index gained 461.30 points, or 1.99%, to 23,622.90. Reporting also said the BSE mid-cap and small-cap indices surged 2.4% and 2.6%, respectively, pointing to broad participation in the rally. Global cues, a recovery in the rupee, and a more than 4% slide in crude were cited as supportive factors. While Friday’s move was linked to hopes of easing West Asia tensions, some updates also noted that Tehran said no final deal had been approved and that obstacles remained. Monday’s trade built on those expectations as fresh headlines emphasized an initial agreement and a signing timeline.

Key data points at a glance

Oil and global market indicators

Market impact and what investors are watching

The immediate market impact came through crude oil and risk sentiment, rather than company-specific triggers. Lower oil reduces pressure on India’s import bill and can support inflation expectations, which often helps rate-sensitive segments and broader equities. The Strait of Hormuz focus mattered because it is a major chokepoint for global oil flows, and any perceived easing of shipping risk tends to compress energy risk premiums quickly. At the same time, reporting included cautionary notes from analysts, reflecting that deal details and timelines still matter. Investors are likely to track formal milestones mentioned in the updates, including the proposed memorandum of understanding and the June 19 signing date in Switzerland. Further clarity from official sources on the scope of the agreement and shipping restoration will remain a key driver for crude and global risk assets. For Indian markets, the next cues will likely come from how long crude holds near the low-$10s level and whether global equities sustain their rebound.

Conclusion

Indian equities started the week with a strong relief rally as oil prices fell more than 4% and global stocks advanced on US-Iran peace-deal headlines. Markets will now watch the reported Switzerland signing timeline and any further official updates on Strait of Hormuz shipping.