- Indian equities opened strong, tracking global markets and US-Iran talks.
- Improved global sentiment follows constructive US-Iran diplomatic discussions.
- Asian markets rally; crude oil prices fall below $100.
Indian equity benchmarks experienced a strong start on Monday, tracking upbeat global markets and growing optimism around ongoing US-Iran negotiations that could ease pressure on global energy supplies.
The BSE Sensex started the session over 76,200, rallying nearly 800 points, while the NSE Nifty50 rang the opening bell about 1 per cent higher above 23,950, climbing more than 200 points, as of 9:15 AM.
GIFT Nifty Signals Sharp Gap-Up Opening
Early indicators pointed to a strong opening for domestic equities, with GIFT Nifty trading at 23,976, up 232 points.
In the pre-open session around 9:08 AM, the Sensex jumped 739.58 points, or 0.98 per cent, to 76,154.93, while the Nifty climbed 220.95 points, or 0.93 per cent, to 23,940.25, indicating a firm opening for Dalal Street.
The rally in futures comes amid improving global risk appetite, as investors react positively to signs of progress in diplomatic talks between the United States and Iran.
US-Iran Negotiations Boost Global Sentiment
Investor mood improved after US President Donald Trump said discussions with Iran were progressing “constructively”, although he also indicated that Washington was not under pressure to rush into a final agreement.
Separately, US Secretary of State Marco Rubio said over the weekend that some progress had been achieved in the negotiations, fuelling hopes that tensions in West Asia may gradually ease.
Markets are closely watching developments around the Strait of Hormuz, a key global oil transit route whose disruption has weighed heavily on sentiment in recent months.
Asian Markets Rally; Nikkei Crosses 65,000
Asian equities traded firmly higher on Monday morning, extending the positive global momentum.
Japan’s Nikkei 225 surged more than 3 per cent and crossed the 65,000 mark for the first time, while Hong Kong’s Hang Seng and Australia’s ASX 200 also advanced.
The broad-based rally reflects easing concerns around geopolitical risks and expectations that global trade flows could stabilise if diplomatic efforts succeed.
Wall Street Ends Higher Ahead Of Key Global Events
US markets ended last week on a positive note, with the Dow Jones Industrial Average and the S&P 500 posting gains, while the Nasdaq Composite also closed marginally higher.
The optimism on Wall Street has spilled over into Asian trading, supporting risk sentiment across global equities.
Crude Oil Slides Below $100 As Hormuz Hopes Rise
Crude oil prices fell sharply after reports suggested that a potential truce between the US and Iran could eventually lead to the reopening of the Strait of Hormuz.
Brent crude futures dropped nearly 4 per cent to trade below the $100-per-barrel mark, easing some of the inflationary concerns that had troubled global markets.
A sustained decline in crude prices would be particularly beneficial for India, given the country’s dependence on oil imports.
RBI Dividend Boost In Focus
Domestically, investor attention is also on the Reserve Bank of India’s record dividend transfer of Rs 2.87 lakh crore to the government for FY26.
Analysts believe the move could improve fiscal flexibility, support liquidity conditions, and potentially strengthen the government’s spending capacity at a time of elevated global uncertainty.
Holiday-Shortened Week Ahead
Trading activity may remain uneven this week as markets will remain closed on Thursday for Bakri Id.
Apart from geopolitical developments, investors will monitor crude oil price movements, foreign institutional investor (FII) activity, rupee-dollar trends, and global bond yields and macroeconomic cues.
