Sensex jumps 1,300 points, Nifty reclaims 24,000 as Iran-US peace deal cools oil prices

India’s benchmark indices rallied sharply on Monday, driven by easing geopolitical tensions in West Asia and a decline in crude oil prices. The BSE Sensex jumped 1,293 points to 76,800, while the Nifty 50 advanced 388.5 points to 24,000, reclaiming the 24,000 mark after reports of a potential U.S.-Iran peace deal. The agreement, including the reopening of the Strait of Hormuz, eased concerns over global oil supplies, pushing Brent crude prices down from $86 to around $83-84 per barrel. Early trade saw the Sensex rise 1082.95 points (1.43%) to 76,610.90, and the Nifty 50 climb 331.90 points (1.40%) to 23,954.80. The broader market participated, with midcap and smallcap indices up over 1%, while the India VIX dropped nearly 4% to 14.19, signaling reduced volatility. Sectorally, realty, banking, and financial stocks led gains, with TMPV, Shriram Finance, and Bajaj Finance among top performers. Pharma and healthcare stocks were the only losers. Among midcaps, L&T Finance, Ashok Leyland, and Swiggy surged 4-6%, while Aurobindo Pharma and Biocon declined. Smallcaps saw Five-Star Business Finance and Force Motors rise 5-7%, but Wockhardt and Syngene International fell. On the BSE, Ashoka Buildcon and Aurionpro Solutions rallied 8-9%, while Paras Defence and Supriya Lifescience dropped 2-4%. Analysts attributed the rally to improved economic prospects, with crude price declines expected to revise India’s FY27 GDP growth to 6.9% and CPI inflation to 4.6%. The rupee strengthened, and banking stocks were seen as key beneficiaries due to attractive valuations. Domestic investors are expected to drive further gains, with midcaps and smallcaps also benefiting from stronger earnings prospects.