Stock Market Today | Closing Bell: Sensex, Nifty Surge Over 1%; Investors Gain Rs 9 Lakh Crore Amid US-Iran Peace Optimism

Indian stock markets ended Monday’s trading session on a strong note, with benchmark indices rising nearly 1% as investors cheered easing geopolitical tensions in West Asia. A breakthrough understanding between the United States and Iran lifted global sentiment, reduced concerns over oil supply disruptions, and triggered a broad-based rally across equity markets. The positive mood on Dalal Street translated into massive wealth creation, with investors adding more than Rs 9 lakh crore in a single trading session.

Markets Rally As Global Tensions Ease

The rally came after reports of an initial agreement between the United States and Iran aimed at ending the conflict in the Middle East and reopening the strategically important Strait of Hormuz.

The development eased fears of prolonged disruptions in global energy supplies, encouraging investors to return to riskier assets. Markets worldwide responded positively as crude oil prices fell sharply and expectations of improved economic stability strengthened.

Sensex & Nifty Finish Near Day’s High

The Nifty 50 began the day with a strong gap-up opening of over 350 points. Although the benchmark pared some gains during intraday trade, it remained firmly in positive territory throughout the session.

The index eventually settled at 23,853.90, gaining 231 points or 0.98 per cent. The BSE Sensex also posted solid gains, rising 736.38 points, or 0.97 per cent, to close at 76,264.33.

Meanwhile, the Bank Nifty advanced 0.68 per cent, reflecting continued strength in the banking sector. Adding to the positive sentiment, India VIX, often referred to as the market’s fear gauge, declined 2.5 per cent, indicating reduced investor anxiety and expectations of lower volatility.

Investor Wealth Jumps By Over Rs 9 Lakh Crore

The market rally significantly boosted investor wealth.

The combined market capitalisation of companies listed on the Bombay Stock Exchange increased from Rs 461.45 lakh crore in the previous session to Rs 470.46 lakh crore on Monday.

This translated into an increase of approximately Rs 9.01 lakh crore in a single day, highlighting the strong buying interest witnessed across sectors.

Falling Oil Prices Support Markets

One of the biggest drivers behind the rally was the sharp decline in crude oil prices.

Brent crude dropped nearly 4 per cent and slipped below the USD 82-per-barrel mark after optimism emerged over the restoration of shipping activity through the Strait of Hormuz.

Lower crude prices are particularly beneficial for India, which imports a large portion of its energy requirements. Reduced oil costs help contain inflation, improve fiscal balances, and support economic growth.

Rupee Strengthens Against The Dollar

The decline in crude oil prices also provided support to the Indian currency. The rupee appreciated nearly 0.7 per cent against the US dollar, reaching 94.46 and marking its strongest level in almost seven weeks.

Currency market participants viewed the easing geopolitical risk and softer oil prices as positive factors for the rupee’s near-term outlook.

Realty Stocks Lead Sectoral Gains

Sectoral performance remained broadly positive, with nine of the eleven major sectoral indices ending in the green. The Nifty Realty index emerged as the star performer, surging 3.96 per cent and recording its strongest single-day gain in more than two months.

Companies expected to benefit from lower fuel costs also witnessed strong buying interest. These included:

• Oil marketing firms
• Airline companies
• Tyre manufacturers
• Paint producers

Infrastructure giant Larsen & Toubro also attracted investors, gaining nearly 3 per cent due to its significant business exposure in the Middle East region.

Broader Markets Outperform Benchmarks

The broader market delivered even stronger returns than the headline indices. The Nifty Midcap 100 climbed 1.29 per cent, while the Nifty Smallcap 100 gained 1.11 per cent, reflecting widespread participation in the rally.

Strong market breadth further underscored the bullish sentiment prevailing across sectors.

Pharma Sector Bucks The Trend

While most sectors ended higher, pharmaceutical stocks witnessed some profit-booking. The Nifty Pharma index declined 0.66 per cent, making it the weakest-performing sector of the day and snapping a two-session winning streak.

On the other hand, the Nifty IT index advanced 0.98 per cent and extended its recent momentum.

Larsen & Toubro, Reliance Among Top Contributors

Among individual stocks, Larsen & Toubro emerged as the biggest contributor to the Nifty’s gains. The company was followed by Reliance Industries and Mahindra & Mahindra, which also played key roles in lifting the benchmark index.

ICICI Bank was the largest drag on the Nifty despite the broader market rally, followed by NTPC and Bajaj Auto.

Market Breadth Remains Strong

The overall market structure remained highly positive. Out of 3,453 stocks traded on the NSE:

• 2,510 stocks advanced
• 831 stocks declined
• 112 stocks remained unchanged

A total of 123 stocks touched fresh 52-week highs, while only 28 hit 52-week lows. Additionally, 205 stocks were locked in upper circuits compared to just 53 stocks in lower circuits, highlighting strong bullish participation across the market.

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