Indian shares climbed at the open on Monday, buoyed by positive global market cues and a sharp decline in crude oil prices.
The drop in oil came after U.S. President Donald Trump held off on a fresh military strike against Iran, saying a deal was close.
Trump indicated that a large-scale military attack on Iran had been called off pending efforts to quickly reach an agreement to reopen the Strait of Hormuz.
The agreement would also need to resolve the ongoing impasse over Tehran’s nuclear capabilities, adding diplomatic complexity to the negotiations.
Peace talks were set to resume Monday after Middle Eastern allies, including Saudi Arabia, urged Washington to prioritize diplomacy over military action.
The easing of geopolitical tensions helped reduce concerns around inflation and interest rates, supporting equity market sentiment across Asia.
The benchmark BSE Sensex rose 540 points, or 0.7 percent, to 78,634 in early trade, while the broader NSE Nifty index gained 172 points, or 0.7 percent, to 24,555.
ITC rallied 2.7 percent despite the company reporting a 27 percent slump in its first-quarter net profit, signaling investor confidence in the stock’s longer-term outlook.
Indian Oil Corporation surged 2.4 percent even after reporting a standalone net loss of Rs. 2,661.3 crore for the June quarter, defying the weak earnings result.
IREDA rose about 2 percent ahead of its earnings results due later in the session, with investors positioning ahead of the announcement.
NCC gained more than 2 percent after the company announced it had received three new orders worth Rs. 1,052.71 crore in July.
Sterlite Technologies jumped 5 percent after securing an order worth Rs. 960 crore from a domestic telecom operator for the supply of optical fibre cables.
Maruti Suzuki fell around 2 percent following a muted set of earnings for the June quarter, weighing on the auto sector.
Sun Pharma declined 2.3 percent despite posting 27 percent year-on-year growth in first-quarter profit, as investors appeared to sell on the news.
Persistent Systems tumbled 3 percent after reporting a 9 percent sequential decline in its first-quarter consolidated net profit, disappointing the market.
ZEE Entertainment Enterprises plummeted 12 percent after a SEBI investigation revealed missing title deeds related to loans secured by Essel Group entities.
