MUMBAI: Stock market benchmark indices Sensex and Nifty surged in early trade on Monday, mirroring a rally in global equities and a sharp decline in crude oil prices, after the US and Iran finalised a deal to end their 107-day war.
The 30-share BSE Sensex jumped 1,112.70 points to 76,648.74 in early deals. The 50-share NSE Nifty surged 335.55 points to 23,956.40.
The US and Iran finalised a deal to end their 107-day war and open the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies, on Friday after an in-person signing of the agreement in Switzerland.
US President Donald Trump made the announcement on Truth Social on Sunday evening, easing pressure on the global energy markets, as officials said the peace agreement would be signed on June 19 in Switzerland.
From the 30-Sensex firms, InterGlobe Aviation, Eternal, Bajaj Finance, Bajaj Finserv, UltraTech Cement, and Larsen & Toubro were among the major winners.
Sun Pharma emerged as the only laggard from the blue-chip pack.
Brent crude, the global oil benchmark, dropped 4.55 per cent to USD 83.36 per barrel.
In Asian markets, South Korea's Kospi jumped nearly 6 per cent, while Japan's Nikkei 225 index climbed more than 5 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also quoting higher.
US markets ended in positive territory on Friday.
"With the dawn of peace in West Asia, hopefully, and the consequent sharp correction in Brent crude to below USD 84 in early trade, the prospects for the Indian economy and stock market have turned for the better," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,082.18 crore on Friday, according to exchange data.
On Friday, the Sensex jumped 1,695.40 points, or 2.30 per cent, to settle at 75,527.95. The Nifty ended sharply higher by 461.30 points, or 1.99 per cent, at 23,622.90.