Sensex, Nifty Jump 1.5% as Trump Announces Iran Deal, Reopens Strait of Hormuz

Mumbai (IANS): Indian equity benchmarks skyrocketed on Monday, with the Sensex gaining 1,200 points and the Nifty jumping 1.5%, following US President Donald Trump’s announcement of a finalized peace deal with Iran and the reopening of the crucial Strait of Hormuz shipping route.

The BSE Sensex surged roughly 1,200 points (1.6%) right at the opening bell to hit 76,725.27, while the NSE Nifty 50 jumped nearly 360 points (1.53%) to start the session at 23,984.85.

Oil Crashing, Indian Equities Soaring

The diplomatic breakthrough triggered an immediate crash in energy markets. International benchmark Brent crude plummeted nearly 5% to $83.05 per barrel, while US West Texas Intermediate (WTI) crude slid 5.74% to hover around $80 per barrel.

Market experts point out that cheaper crude drastically improves India’s macroeconomic outlook:

“With the dawn of peace in West Asia and Brent crude dropping below $84, the prospects for the Indian economy have turned significantly for the better. We can expect FY27 projections for GDP growth and CPI inflation to be revised to 6.9% and 4.6%, respectively, which bodes excellent news for equities.”

Sectoral Performance: Real Estate and Auto Lead the Charge

Rate-sensitive and input-cost-heavy sectors drove the massive opening rally:

• Nifty Realty: Jumped 2.59%
• Nifty Cement: Advanced 2.46%
• Nifty Auto: Gained 1.92%
• Nifty Consumer Durables: Rose 1.85%
• Nifty Oil & Gas / PSU Banks: Up 1.83% and 1.77% respectively

Defensive sectors saw money flowing out to fuel the broader rally, with Nifty Pharma dipping 0.17% and Nifty Healthcare losing 0.05%.

Global Markets Rejoice

Trump announced the breakthrough on his Truth Social platform, stating that the deal would secure long-term regional stability. He confirmed that the US would dismantle its naval blockade, freeing up maritime trade through the vital Strait of Hormuz checkpoint.

The news triggered a massive wave of relief across Asian markets. Japan’s Nikkei and South Korea’s KOSPI both exploded over 5% higher, while Hong Kong’s Hang Seng index gained a more modest 0.5%.