Global Markets
Home›Global Markets›Emerging Markets›Indian stocks jump after US-Iran de-escalation eases o…
Indian stocks jump after US-Iran de-escalation eases oil and inflation fears
The Sensex rose 776 points, and the rupee strengthened to 95.90 per dollar as investors priced in lower energy costs.
Indian markets extended gains on Monday, July 27, with the Sensex rising 776 points, or 1.02%, to close at 76,835.78, and the Nifty 50 up 229 points, or 0.96%, to end at 23,995.95, ending a five-day losing streak. Broader participation followed, with the Nifty Midcap 100 climbing 1.11% and the Smallcap 100 jumping 1.31%.
LiveMint Markets said the rally was tied to improved global sentiment after the US and Iran halted strikes, which raised hopes for a diplomatic resolution in the Middle East and supported expectations of smoother energy supply through the Strait of Hormuz. The outlet linked the move to expectations that inflation and rate-hike fears could ease as energy costs cool.
Brent crude fell by more than 9% to around $87 per barrel, helping to reduce concerns about import costs and inflation, according to the report. Vinod Nair of Geojit Investments said the pause in strikes eased worries over rising import costs and inflation, with the crude correction and a decline in long-term bond yields supporting hopes for a durable resolution.
The same session saw India’s market capitalisation of BSE-listed firms rise to nearly ₹481 lakh crore from nearly ₹476 lakh crore the prior day, adding roughly ₹5 lakh crore in investor wealth. The rupee also strengthened sharply, rising 63 paise to 95.90 per dollar on provisional figures, while the dollar index fell 0.30%, boosting the appeal of emerging market equities.
Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%|Sensex 76,391.39 ▼0.5%