Indian equities finished solidly higher on Monday, supported by improving macroeconomic conditions as key energy prices continued to fall. The S&P BSE Sensex rose 0.4% to 77,095, while the NSE Nifty 50 also gained 0.4% to close at 24,103.
Market sentiment was buoyed by reports that talks between Iran and the United States made progress over the weekend, reinforcing expectations that a longer-term peace agreement could be reached within the next two months. Such a deal would likely ensure uninterrupted energy exports from the Middle East.
Lower crude prices brighten the outlook for the Indian economy by easing inflation expectations and lending support to the rupee, given India’s heavy dependence on energy imports. This, in turn, has helped attract additional foreign inflows into Indian equities.
Technology shares advanced, with Tech Mahindra and Infosys climbing 2.2% and 1.3%, respectively. Financials also moved higher, as Bajaj Finserv, HDFC Bank, and Bajaj Finance gained between 0.5% and 1%.
