Indian Shares Rally As Oil Prices Crash On US-Iran Truce Hopes

(RTTNews) - Indian shares rallied on Monday as oil prices tumbled amid eased Middle East tensions, helping ease inflation and interest-rate concerns ahead of crucial Fed, BoE and BoJ central bank meetings due this week.

The U.S. dollar index dropped, Treasury yields dipped and Brent crude prices tumbled more than 9 percent toward $89 a barrel amid a pause in the U.S.-Iran war.

Iran stopped conducting counterattacks and said it had made progress in talks with Oman on management of the Strait of Hormuz after the U.S. paused an almost two-week run of strikes against Iran for a second night.

The 30-share BSE Sensex jumped 776.01 points, or 1.02 percent, to 76,835.78, tracking firm cues from global markets.

The NSE Nifty index surged 228.50 points, or 0.96 percent, to 23,995.95, snapping a five-day losing streak amid broad-based buying across sectors. The BSE mid-cap and small-cap indexes climbed 1.1 percent and 1.3 percent, respectively on expectations of lower inflation, an improved current account outlook and reduced pressure on the rupee.

The market breadth was strong on the BSE, with 2,780 shares rising while 1,578 shares declined and 200 shares closed unchanged.

Among the top gainers, Eternal soared 5.6 percent, Indigo jumped 4.8 percent and Infosys rallied 3.7 percent. Mahindra & Mahindra, Asian Paints and Bajaj Finance all rose around 3 percent.