Indian equity benchmarks closed higher on Monday, with the Sensex gaining 291.17 points, or 0.38%, to 77,094.07, while the Nifty 50 added 89.80 points, or 0.37%, to settle at 24,102.90.
The broad-based advance reflected a shift in market sentiment driven by external macro factors rather than domestic data releases.
Investors responded positively to reports indicating progress in peace negotiations between the United States and Iran.
The diplomatic developments helped ease concerns over potential supply disruptions in the Middle East, leading to a decline in crude oil prices.
Lower energy costs typically support corporate margins and reduce inflationary pressures, providing a tailwind for equity valuations across emerging markets.
Trading activity centered on large-cap names, with Tata Consultancy Services (TCS) and Vodafone Idea among the most-watched shares.