Sensex Jumps 835 points, Nifty Up 260 points on US-Iran Deal Optimism; Banks, Auto Lead Gains 

Mumbai, May 25: The Indian stock benchmarks Sensex and Nifty resumed trading sharply higher on Monday morning, riding their strongest global cues on the progress in the US-Iran peace deal negotiations after weeks of uncertainties lifted investor risk appetite in Asian and Western markets. Asian stocks extended their gains on hopes that peace talks between the United States and Iran were progressing. 

Sensex climbed 834.54 points or 1.11% to 76,249.89 and Nifty 50 advanced 259.45 points or 1.09% to 23,978.75 as of 9: 18 am on healthy buying interest in banking, auto, and financial services sector stocks. 

Gainers & Losers 

Among Nifty 50 gainers, Eicher Motors surged 4.97%, with its LTP at ₹7,328.50 against a previous close of ₹6,981.50, making it the top gainer on the index on the back of its strong Q4 earnings. Shriram Finance rose 2.49% to ₹964.40 from ₹941.00, while Mahindra & Mahindra gained 2.22% to ₹3,149.80 from ₹3,081.30. Bajaj Finance advanced 1.93% to ₹934.20 from ₹916.55, and HDFC Bank climbed 1.64% to ₹779.40 from ₹766.80, underscoring the strength in financial and auto heavyweights.  

On the losing side, Hindalco slipped 1.10% to ₹1,097.00 from its previous close of ₹1,109.20, dragged by its Q4 profit decline, while ONGC fell 0.69% to ₹288.00 from ₹290.00 and Sun Pharma dipped 0.51% to ₹1,835.20 from ₹1,844.60. 

Broader & Sectoral Markets 

In the broader market, Nifty Midcap 100 gained 0.75% to 61,847.00, Nifty Smallcap 100 added 1.03% to 18,141.30, and Nifty 500 rose 0.99% to 22,875.05, indicating healthy participation beyond large-cap names.  

On the sectoral front, Nifty Auto was the standout performer, surging 2.09% to 26,560.10, while Nifty PSU Bank gained 1.54% to 8,129.40 and Nifty Bank rose 1.46% to 54,843.05. Nifty IT was the only sectoral index in the red, slipping 0.02% to 28,906.40, while Nifty FMCG and Nifty Pharma advanced modestly. 

US-Iran Conflict 

The US-Iran conflict, which began in February when the US and Israel launched strikes on Iran, has upended global energy markets through the closure of the Strait of Hormuz. Trump said on Saturday that a peace memorandum was “largely negotiated,” sending oil prices sharply lower, but walked back the optimism on Sunday by stressing that the US blockade on Iranian ships would remain “in full force and effect” until a deal is certified and signed. Iran’s Fars news agency also dismissed Trump’s characterisation as “inconsistent with reality,” keeping the situation fluid. The conflict has now entered its fourth month with core issues including Iran’s nuclear ambitions, sanctions relief, and frozen oil revenues still unresolved.  

Trump on India, Modi 

Separately, Trump expressed strong warmth toward India during a phone appearance at a Delhi event, saying “We have never been closer to India. And India can count on me 100 per cent,” while calling Prime Minister Modi a personal friend. 

Asian & US Markets 

Asian markets opened broadly in the green on Monday, with Japan’s Nikkei 225 leading with a 2.85% surge to 65,142.81 and Hong Kong’s Hang Seng rising 0.86% to 25,606.03. US markets closed positively on Friday, with the Dow Jones Industrial Average up 0.58% to 50,579.70 and the S&P 500 gaining 0.37% to 7,473.47. 

Oil Prices 

Oil prices retreated sharply on Monday on US-Iran deal optimism, with Brent crude falling 4.55% to $98.83 a barrel and WTI declining 4.73% to $92.03, both touching their lowest levels since May 7. The pullback offers relief to India’s import-dependent economy, though prices remain elevated given the unresolved Strait of Hormuz blockade. 

Indian Markets’ Friday Session  

Indian benchmark indices had closed higher on Friday, with Nifty 50 ending 0.27% up at 23,719.30 and Sensex gaining 0.31% to settle at 75,415.35. Private bank buying, a recovery in the rupee supported by RBI intervention, and easing crude prices from session highs drove the positive close. Monday’s gap-up opening builds on that momentum, with the trajectory of US-Iran negotiations remaining the key variable to watch through the session. 

Source:

• nseindia.com 
• Bseindia.com