Iran-US peace deal: Which stocks could gain as Middle East tensions ease? Check full list

Indian equity markets traded sharply higher on Monday after easing tensions in the Middle East, and a decline in crude oil prices boosted investor sentiment. Market participants also tracked companies with significant business exposure to the region.

At 11:25 am, the BSE Sensex was trading 1,146.98 points higher at 76,674.93, while the Nifty50 gained 342.30 points to 23,965.20.

The rally came after crude oil prices fell and concerns over energy supply disruptions eased. Brent crude settled 4.8 per cent lower at USD 83.3 per barrel, its lowest closing level in three months.

Investor sentiment improved further after US President Donald Trump announced a peace agreement with Iran and said the Strait of Hormuz would reopen with the naval blockade lifted, reducing concerns over global energy supplies.

OMCs emerge among top beneficiaries

Shares of oil marketing and gas distribution companies witnessed strong buying as lower crude prices are generally seen as positive for their business. The Nifty Oil & Gas index rose 1.86 per cent to 11,216.95.

Chennai Petroleum Corporation emerged as the top gainer in the sector, rising 6.17 per cent to Rs 1,207.90. Petronet LNG gained 5.17 per cent to Rs 288.95, while Hindustan Petroleum Corporation Ltd (HPCL) advanced 4.89 per cent to Rs 407.90.

Indian Oil Corporation (IOC) climbed 3.48 per cent to Rs 145.84, and GAIL (India) rose 3.17 per cent to Rs 175.91. Bharat Petroleum Corporation Ltd (BPCL) gained 2.71 per cent to Rs 310.55.

Aegis Logistics and Aegis Vopak Terminals rose 2.71 per cent and 2.59 per cent, respectively. Castrol India added 2.61 per cent, while Mahanagar Gas Ltd (MGL) and Indraprastha Gas Ltd (IGL) gained 2.48 per cent and 2.14 per cent, respectively.

Reliance Industries traded 1.52 per cent higher, while Adani Total Gas was up 0.41 per cent. However, upstream oil producers lagged the broader sector. Oil India fell 0.66 per cent, and ONGC declined 0.95 per cent during trade.

Infra companies with Middle East exposure in focus

Investors also monitored infrastructure and engineering companies that derive a significant portion of their business from the Middle East. Larsen & Toubro (L&T), one of India's largest engineering and construction companies, traded 3.40 per cent higher at Rs 4,188. Around 36 per cent of the company's order book is linked to the Middle East region.

KEC International gained 2.02 per cent to Rs 514.50. The company derives around 20-25 per cent of its revenue from the Middle East. Kalpataru Projects International traded 0.50 per cent higher at Rs 1,309. Around 11 per cent of its order book comes from West Asia.

Welspun Corp remained in focus due to its exposure to Saudi Arabia, which accounts for around 23 per cent of its order book. The stock, however, traded 0.57 per cent lower at Rs 1,391.

Market participants said easing geopolitical uncertainty could support business activity and project execution across the region, benefiting companies with a strong Middle East presence.

Basmati rice exporters also on investors' radar

The easing of tensions in the region also kept agricultural exporters in focus, particularly companies with exposure to Middle Eastern markets. KRBL and LT Foods, two major basmati rice exporters, remained on investors' watchlists as countries in the region account for a significant share of India's basmati rice exports.

KRBL, which derives around 61 per cent of its revenue from the MENA (Middle East and North Africa) region, gained 2.63 per cent to Rs 376.20.

LT Foods traded largely flat and was down 0.21 per cent at Rs 380.10. Iran continues to be an important importer of basmati rice, making developments in the region significant for the sector.

Markets cheer easing geopolitical concerns

Broader market sentiment remained positive as investors welcomed signs of reduced geopolitical risks and lower energy costs. Analysts said easing tensions in the Middle East could help stabilise global energy markets and improve risk appetite among investors.

Stocks linked to oil consumption, gas distribution, infrastructure projects and exports to the Middle East remained among the key sectors in focus during Monday's trade.