Stock Market Closing: Investors add Rs 8.37 lakh crore as Sensex jumps 743 points, Nifty ends at 23,854 on peace deal optimism

Stock Market Closing Bell: Indian equity benchmarks ended Monday's session with solid gains after reports of a peace agreement between the United States and Iran improved risk appetite and eased concerns over energy supplies.

The BSE Sensex settled at 76,176.54, up 648.59 points or 0.86 per cent, while the NSE Nifty50 closed at 23,848.10, gaining 225.20 points or 0.95 per cent.

The rally followed reports that the US and Iran had agreed to end a four-month-long conflict in West Asia.

US President Donald Trump said Washington and Tehran had reached a peace agreement, while both countries announced an immediate cessation of military operations, according to reports.

The development lifted sentiment across global markets as investors welcomed signs of easing geopolitical tensions in a region critical to global energy supplies.

Falling crude oil prices support equities

The prospect of peace in the region triggered a sharp decline in crude oil prices, with investors expecting smoother movement of energy supplies through the Strait of Hormuz.

Lower oil prices are generally seen as positive for India, helping reduce inflationary pressures, improve corporate profitability and support economic growth.

The easing of these concerns encouraged investors to increase exposure to equities, resulting in broad-based buying across sectors.

Realty stocks lead sectoral rally

Among sectoral indices, the Nifty Realty index emerged as the standout performer, rising more than 4 per cent during the session.

The Nifty Consumer Durables and Nifty Auto indices also outperformed the broader market, reflecting optimism around domestic demand and consumption-related sectors.

In contrast, the Nifty Pharma index lagged its peers as investors rotated towards more cyclical sectors that tend to benefit from improving economic sentiment.

Trent, Shriram Finance, HDFC Life among top gainers

Within the Nifty50 universe, Trent, Shriram Finance and HDFC Life Insurance Company emerged as the top gainers.

Market participants said the rally reflected renewed confidence in domestic-facing businesses, particularly those linked to consumption, financial services and discretionary spending.

Broader markets continue to outperform

The strength was not limited to large-cap stocks.

The Nifty MidCap index ended 1.29 per cent higher, while the Nifty SmallCap index gained 1.11 per cent, indicating healthy participation across the broader market.

The positive breadth suggests investors were willing to move beyond benchmark names and increase exposure to mid-sized and smaller companies as sentiment improved.

Monday's rally marked a strong start to the week for Indian equities, with investors betting that easing tensions in West Asia and lower crude oil prices could provide support to markets in the near term. Market participants will now watch developments around the proposed peace agreement and the reopening of key energy supply routes for further cues.