India Stocks Soar on US-Iran Peace Hopes

Indian stock markets experienced a significant surge on Monday, with both the Nifty 50 and Sensex indices climbing over 1%. This rally was primarily fueled by renewed optimism surrounding a potential US-Iran peace agreement and a subsequent decrease in crude oil prices. The market sentiment improved as traders reduced their bearish positions. Realty stocks led the sectoral gains, with the Nifty Realty index jumping 4%, followed by consumer durables and auto stocks. Foreign portfolio investors injected ₹200 crore into the market on Monday, marking their return after an extended period of selling. This inflow, combined with domestic institutional buying, contributed to the market's upward momentum. The India VIX, a measure of market volatility, also decreased, indicating a reduction in investor anxiety. Analysts suggest that if the peace deal is finalized, it could remove a major source of uncertainty, potentially encouraging further foreign investment in Indian equities. The Nifty 50 showed strength by briefly crossing the 24,000 mark, a level not seen since late May.