Domestic equity markets saw a volatile session on Monday, with indices swinging between gains and losses as investors reacted to fresh geopolitical developments in West Asia and mixed global cues.
Markets found support after reports indicated that the US and Iran had received a proposal aimed at ending hostilities, raising hopes of a potential ceasefire.
The BSE Sensex rang the closing bell near 74,100, rallying nearly 800 points, while the NSE Nifty50 ended trading for the day around 22,950, climbing more than 200 points, as of 3:30 PM.
According to reports, a two-stage framework has been proposed, involving an immediate ceasefire followed by a broader agreement that could materialise within 15 to 120 days. The plan reportedly includes nuclear restrictions and possible sanctions relief, with Pakistan said to have shared the framework with both sides.
Crucially, any progress on this front could lead to the reopening of the Strait of Hormuz, a key global oil supply route, easing concerns around energy disruptions.
Rupee Strengthens On Improved Sentiment
The Indian rupee also strengthened during the session, appreciating 33 paise to 92.85 against the US dollar.
The currency opened at 93.13 in the interbank market and gained ground through the day, supported by easing concerns over oil prices and improved risk sentiment.
Despite a positive start, gains proved short-lived as caution persisted. The Sensex had opened higher by over 150 points, while the Nifty also started in the green, but both indices slipped into negative territory during early trade.
FII Selling Continues, DIIs Offer Support
Foreign Institutional Investors (FIIs) extended their selling trend, offloading equities worth Rs 9,931 crore in the previous session.
Domestic Institutional Investors (DIIs), however, remained supportive, buying shares worth over Rs 7,200 crore and helping cushion market downside.
