Sensex jumps over 1,000 points as hopes of US-Iran deal boost markets

Mumbai- Indian stock markets witnessed a strong rally on Monday, supported by positive global cues and hopes of easing geopolitical tensions after Donald Trump said negotiations between the United States and Iran were moving in a constructive direction.

The benchmark BSE Sensex surged 1,073.61 points, or 1.42 per cent, to close at 76,488.96. Meanwhile, the Nifty 50 climbed 312.4 points, or 1.32 per cent, to settle at 24,031.7, reclaiming the important 24,000 mark.

Market experts said that 24,100 has now emerged as the immediate resistance level for the Nifty, followed by the 24,300–24,350 range where significant Open Interest build-up has been observed.

Analysts added that the 23,950–24,000 range has now become a key support zone after the index managed to break out and close above it. Sustained strength above this level could push the market higher, while slipping below it may trigger a fresh phase of consolidation.

Among the top gainers on the Nifty were Adani Enterprises, Eicher Motors, Larsen & Toubro and Bajaj Finance.

Investor sentiment improved after Trump reportedly indicated that talks with Iran were progressing positively and advised negotiators not to rush into a deal, suggesting that the United States had time on its side. The comments fuelled hopes of reduced tensions in West Asia, encouraging investors to move towards riskier assets globally.

Broader markets also ended firmly higher. The Nifty MidCap index gained 0.94 per cent, while the Nifty SmallCap index rose 1.37 per cent during the session.

Banking stocks led the rally, with the Nifty PSU Bank, Nifty Private Bank and Nifty Bank indices outperforming the broader market.

On the other hand, the Nifty IT, Nifty FMCG and Nifty Healthcare indices underperformed compared to other sectors, although they too ended the day in positive territory.

Meanwhile, the Indian rupee strengthened sharply and traded near 95.22 against the dollar, gaining around 0.45 per cent. Analysts said improving sentiment around the US-Iran situation helped reduce pressure on crude oil prices, which in turn supported the domestic currency.

With inputs from IANS