Indian benchmark indices closed firmly in positive territory on Monday, driven by a sharp pullback in crude oil prices and sustained buying from foreign institutional investors.
The market rally was underpinned by growing optimism surrounding diplomatic progress in talks between the United States and Iran, which has helped alleviate supply disruption fears in global energy markets.
The decline in oil prices provided immediate relief to India’s trade balance outlook, reducing import costs and supporting equity valuations.
Foreign portfolio flows accelerated into Indian equities, capitalizing on the improved risk sentiment and lower energy input costs.
The cross-asset reaction highlights how geopolitical de-escalation in the Middle East continues to serve as a key driver for emerging market performance, particularly in energy-importing economies.
This development follows a period of heightened volatility linked to regional tensions.