Falling Crude Oil Prices, Easing US-Iran Tensions and Strong Buying Across Sectors Lift Investor Confidence

Indian benchmark equity indices began the week on a firm footing as investors welcomed easing geopolitical tensions in the Middle East and a sharp correction in global crude oil prices. Positive global cues, coupled with broad-based buying across sectors, pushed the BSE Sensex and NSE Nifty significantly higher during Monday's morning session.

At around 10:00 AM, the BSE Sensex was trading 572 points higher at 76,631.29, while the NSE Nifty50 gained 166 points to 23,933.35, comfortably reclaiming the 23,900 mark. The upbeat sentiment was visible across the market, with both frontline and broader indices participating in the rally.

IT Sector Leads the Charge

Technology stocks emerged as the biggest contributors to the market's gains. The Nifty IT Index advanced nearly 2%, making it the best-performing sector of the day.

Leading the rally were Oracle Financial Services Software, Infosys, and Mphasis, supported by renewed optimism over global technology spending and improved investor appetite for export-oriented businesses.

Apart from IT, FMCG and Media stocks also witnessed healthy buying interest, while the Oil & Gas sector posted relatively modest gains compared to other indices.

Broader Markets Continue to Outperform

The positive momentum extended beyond the benchmark indices.

• Nifty Midcap Index: Up approximately 0.98%

• Nifty Smallcap Index: Up approximately 0.86%

The strength in mid-cap and small-cap stocks indicates improving market breadth and rising confidence among investors, with buying seen across multiple sectors rather than being limited to heavyweight stocks.

Top Gainers in Nifty50

Among the benchmark constituents, the biggest gainers included:

• InterGlobe Aviation (IndiGo)

• Tata Consumer Products

• Eternal

The gains reflected strong investor confidence in sectors linked to aviation, consumer demand and new-age businesses.

Sharp Decline in Crude Oil Boosts Market Mood

One of the key drivers behind Monday's rally was the sharp correction in global oil prices.

Brent crude dropped as much as 7.44%, touching an intraday low of US$89.58 per barrel, after the United States and Iran paused military strikes following nearly two weeks of hostilities. The move eased fears of supply disruptions and reduced concerns over imported inflation for oil-dependent economies such as India.

The July Brent futures contract later traded around US$92.65 per barrel, still down more than 4% during the session.

Lower crude prices are generally viewed as positive for India's economy, helping reduce inflationary pressures, improve the fiscal outlook and support corporate profitability.

Indian Rupee Strengthens

Reflecting improved global sentiment, the Indian rupee appreciated by 28 paise to 96.25 against the US dollar in early trade.

The appreciation was supported by declining crude prices, stronger foreign investor sentiment and expectations that easing geopolitical risks could stabilise global financial markets.

Corporate Earnings Take Centre Stage

Investor attention is also focused on a busy earnings calendar, with several major companies scheduled to announce their first-quarter FY27 results.

Some of the key companies reporting earnings include:

• Bharat Electronics (BEL)

• Canara Bank

• Coal India

• Coforge

• Tata Power

• Tata Chemicals

• Indus Towers

• Happiest Minds Technologies

• Housing & Urban Development Corporation (HUDCO)

• R R Kabel

• Tejas Networks

The quarterly numbers are expected to provide fresh direction to sector-specific stocks over the coming sessions.

IPO Market Remains Active

Primary market activity continues to remain robust.

Two SME public issues—Propshop Events & Exhibitions and Advance Technoforge—opened for subscription today, while three mainboard IPOs entered their final bidding day. Meanwhile, Silverstorm Parks & Resorts IPO continued into the second day of subscription.

Strong IPO activity reflects sustained investor participation despite recent market volatility.

Global Developments Support Risk Appetite

Global investors turned optimistic after reports indicated a temporary pause in military action between the United States and Iran. The easing of geopolitical tensions helped improve risk sentiment across Asian markets while simultaneously dragging oil prices lower.

Market participants will continue to monitor developments in the Middle East, movements in crude oil prices, central bank commentary and global economic data for further cues.