Business

IIE DIGITAL DESK ; May 25: Indian stock markets witnessed a strong upward movement on Monday morning, with both benchmark indices opening sharply higher. The surge in equities came amid easing global crude oil prices and improving international sentiment following reports of a possible peace agreement between United States and Iran.

Market analysts noted that a significant drop in crude oil prices in the international market, with prices slipping below $98 per barrel, provided strong support to investor sentiment in SENSEX and NIFTY 50. At the opening of trade on Monday, the Sensex surged by 908.98 points to reach 76,317.85, while the Nifty gained 262.65 points to climb to 23,977.70.

The positive momentum in global markets, along with easing crude oil prices, helped boost confidence among investors, leading to broad-based buying across key sectors. Experts believe that lower oil prices generally reduce inflationary pressure on emerging economies like India, which in turn supports equity markets.

The currency market, the Indian rupee also showed signs of recovery after recent volatility. After approaching the 97-per-dollar level last week, the rupee has gradually strengthened in recent trading sessions. On Monday morning, the rupee appreciated by 40 paise, bringing the exchange rate to ₹95.20 against the US dollar.

Financial experts attributed the strengthening of the rupee to a combination of factors, including declining global crude oil prices and improved geopolitical sentiment following speculation over a potential US-Iran peace agreement. A stronger rupee typically reflects improved investor confidence and better foreign capital inflows into the domestic economy.

Market observers suggest that if global crude oil prices continue to remain stable and geopolitical tensions ease further, Indian equity markets and the currency could maintain their positive momentum in the coming days.