Indian equity markets closed with modest gains on Monday, driven by a combination of falling crude oil prices and emerging optimism surrounding diplomatic efforts between the United States and Iran.

Brent crude oil slipped below the $80-per-barrel threshold, providing immediate relief to energy-import dependent economies and bolstering investor risk appetite across Asian markets.

The positive sentiment was further reinforced by reports of progress in US-Iran peace talks, which helped ease broader geopolitical tensions that had previously weighed on global risk assets.

This dual catalyst of lower input costs and de-escalating geopolitical risk created a favorable backdrop for domestic equities, allowing benchmarks to recover from previous session losses.

Looking ahead, Indian equity benchmarks are poised to open higher, tracking a positive signal from the GIFT Nifty futures index.

The forward indicator suggests a continued rebound for the Sensex and Nifty 50, which had closed lower on Friday amid lingering uncertainty.