- Nifty opened 1.43% higher at 23,960, Sensex rose 1.52% to 76,676 on US-Iran peace news
- US and Iran agreed to reopen Strait of Hormuz, ending conflict and easing energy supply concerns
- Oil prices fell with Brent crude down 4% to $83.77 and WTI crude down 4.77% to $80.83 per barrel
The market is abuzz today after the US-Iran peace deal, with benchmark indices extending gains to open higher, with Nifty trading 1.43% higher at 23,960 at 9:15 am, while Sensex up by 1.52% higher at 76,676.
This surge comes against the backdrop of several positive cues, including US and Iran finally reaching a peace deal, cooling crude prices, and positive global cues.
All sectors, barring Pharma, are trading in the green, with gains led by Realty, PSU Bank, and Auto which are up 2%. It's followed by Financial Services, and Oil and Gas.
The broader indices are also trading positively, with Nifty Smallcap 250 higher by 1.63%, while the Midcap 150 rose 1.46%.
Here are three reasons the markets are gaining today:
US-Iran Peace Deal
The US and Iran have reached an agreement to reopen the Strait of Hormuz and end the war that killed thousands of people and disrupted global energy supplies.
The officials from these countries will reportedly meet in Switzerland on 19 to formally sign the deal.
Meanwhile, in a post on Truth Social, Trump said, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!"
The agreement comes after Trump earlier claimed that the peace deal will be signed on Sunday, June 14, on his 80th birthday. However, Iran did not confirm the timeline for signing the pact.
Get all the latest updates on the US-Iran war here.
Crude At $83/Barrel
Oil prices also fell after U.S. President Donald Trump said Washington had completed an agreement with Iran that would reopen the Strait of Hormuz, a key route for global crude shipments.
WTI crude futures for July delivery dropped 4.77% to $80.83 a barrel, while Brent crude futures for August delivery fell about 4% to $83.77 a barrel.
Prices came under pressure as some crude shipments through Hormuz resumed, developed economies released emergency oil reserves and major importers, including China, reduced purchases.
Positive Global Cues
Markets across the Asia-Pacific region also moved higher in early trade on Monday. South Korea led regional gains, with the Kospi surging 5.17%, while the small-cap Kosdaq traded largely unchanged. In Japan, the Nikkei 225 climbed 5.13% and the broader Topix index rose 3.63%. Australia's S&P/ASX 200 added 2.62%.
Meanwhile, Hong Kong's Hang Seng futures stood at 24,706, slightly below the benchmark index's previous close of 24,718.10.
Dow Jones Industrial Average futures advanced 342 points, or 0.7%. Futures linked to the S&P 500 gained 0.9%, while Nasdaq 100 futures outperformed with a 1.4% rise.
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