Indian Shares Rally On US-Iran Peace Deal Hopes
(RTTNews) - Indian shares closed Monday's session on a buoyant note as hopes for a U.S.-Iran peace deal sent oil prices sharply lower and eased inflationary concerns.
Oil prices tumbled nearly 5 percent and the rupee extended gains for a third straight session to hit a two-week high at around 95.28 to the dollar after U.S. President Donald Trump said on Saturday a peace deal with Iran had been "largely negotiated."
Media reports suggested that the U.S. and Iran are working toward a deal to extend their fragile ceasefire by 60 days and reopen the Strait of Hormuz. Also, it was said that Tehran has agreed to dispose highly enriched uranium.
In an interview to Mint, RBI Governor Sanjay Malhotra said the rupee may have become undervalued after its sharp decline since the outbreak of the Middle East conflict on 28 February.
The benchmark BSE Sensex witnessed a robust rally, rising 1,073.61 points, or 1.42 percent, to 76,488.96 on the back of firm cues from global markets.
The NSE Nifty index jumped 312.40 points, or 1.32 percent, to 24,031.70 while the BSE mid-cap and small-cap indexes gained 0.8 percent and 1.2 percent, respectively.
The market breadth was strong on the BSE, with 2,793 shares rising while 1,532 shares declined and 206 shares closed unchanged.
Among the top gainers, Mahindra & Mahindra, SBI, ICICI Bank, Kotak Mahindra Bank, Bajaj FinServ, Eternal, HDFC Bank, Larsen & Toubro and Bajaj Finance surged 2-3 percent.
State-run oil marketing companies BPCL, HPCL and IOC jumped 3-4 percent after yet another fuel price hike and a sharp decline in crude oil prices in international markets on increased optimism over a potential U.S.-Iran peace deal.
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