Nifty reclaims 24,000 as global risk appetite rebounds

India’s Nifty 50 index reclaimed the 24,000 mark on Monday, rising 1.32% to 24,031.70, while the S&P BSE Sensex climbed 1,073.61 points (1.42%) to 76,488.96. The rally was fueled by a sharp drop in crude oil prices and optimism over a potential US-Iran peace deal, which eased global risk concerns and boosted financial stocks like Larsen & Toubro (up 2.71%), HDFC Bank (up 2.67%), and ICICI Bank (up 2.11%). The broader market saw gains across sectors, with the BSE 150 MidCap Index up 0.80% and the BSE 250 SmallCap Index rising 1.22%. Market breadth was positive, as 2,703 shares advanced compared to 1,607 declines on the BSE. The India VIX, a volatility indicator, fell 6.74% to 16.70, signaling reduced near-term uncertainty. Despite the market rally, fuel prices in India increased for the fourth time in 10 days, with petrol and diesel rising by an average of Rs 2.80 per litre. Mumbai’s petrol now costs Rs 111.21 per litre, and diesel is at Rs 97.83 per litre, following cumulative hikes of nearly Rs 7.50 per litre since May 15. Global markets also strengthened, with US Dow Jones futures up 422 points and European shares advancing on hopes of a US-Iran agreement to reopen the Strait of Hormuz. Asian markets, including Japan’s Nikkei 225, hit record highs as crude oil prices dropped $5.76 to $97.78 per barrel. The Indian rupee appreciated slightly to 95.25 against the dollar, while India’s 10-year bond yield fell to 7.027%. Commodities like gold (MCX futures up 0.42% to Rs 159,350) and global bonds also saw mixed movements, reflecting improved investor sentiment. US markets remain closed for Memorial Day, while Asian markets closed early due to public holidays.