Daijiworld Media Network - Mumbai

Mumbai, May 25: Domestic equity markets surged sharply on Monday, with benchmark indices gaining over 1 per cent in early trade, driven by a sharp decline in crude oil prices and renewed optimism over a possible easing of geopolitical tensions between the United States and Iran.

The Sensex jumped as much as 874 points, or 1.15 per cent, to touch an intraday high of 76,289, while the Nifty rose 264 points, or 1.11 per cent, to reach 23,983 during morning trade.

Market sentiment improved after international crude oil prices slipped below the $100-per-barrel mark for the first time in more than two weeks. The decline was largely attributed to expectations of a potential diplomatic understanding between Washington and Tehran, which could ease supply concerns and geopolitical risk in global energy markets.

In sectoral performance, Nifty Auto emerged as the top gainer, rising over 2 per cent. Banking indices also saw strong buying interest, with both PSU Bank and Private Bank indices advancing up to 1 per cent. Broader sectors including Oil & Gas, Realty, Consumer Durables, Cement and Chemicals also traded firmly in positive territory, reflecting widespread market optimism.

However, select heavyweight stocks came under pressure. Hindalco Industries was the top loser among Nifty constituents, falling nearly 2 per cent in early trade. Stocks such as ONGC, Max Healthcare, NTPC and Infosys also declined marginally, slipping up to 1 per cent.

Broader markets outperformed in early sessions, with small-cap indices leading gains. The Nifty Smallcap 50 and Nifty Smallcap 100 both rose over 1 per cent, while benchmark-linked indices such as the Nifty 100, Nifty 200 and Nifty 500 also gained around 1 per cent each.

Global cues further supported domestic sentiment. Crude oil prices saw a sharp decline, with Brent crude falling 6.16 per cent to $97.16 per barrel, while US West Texas Intermediate (WTI) dropped 6.5 per cent to $90.33 per barrel.

Reports also suggested progress in US-Iran discussions, including statements indicating a potential memorandum of understanding that could pave the way for reopening strategic shipping routes such as the Strait of Hormuz, which previously handled a significant share of global oil and LNG trade.

Analysts said Indian equities opened the week on a strong footing due to easing crude prices, encouraging quarterly earnings, and improving currency stability. They added that recent rupee appreciation from its lows could help attract foreign portfolio inflows, further supporting market momentum.

Experts also noted strong performance in digital and platform-based companies during the latest earnings season, indicating healthy underlying corporate growth.

Asian markets mirrored the upbeat trend, with Japan’s Nikkei and Taiwan’s benchmark indices rising nearly 3 per cent each, while Hong Kong’s Hang Seng gained around 1 per cent.

On Wall Street, markets ended the previous session on a positive note, with the S&P 500 and Nasdaq gaining 0.37 per cent and 0.19 per cent respectively, reinforcing global risk appetite.