The GIFT Nifty signalled a strong start for Indian equities on Monday, rising 349 points to 24,035 as optimism over a reported peace agreement between the United States and Iran lifted sentiment across global markets.
Asian stocks rallied in early trade after US President Donald Trump said Washington and Tehran had agreed on a deal to end the conflict in West Asia. Reports said both countries had announced an immediate halt to military operations.
The agreement is also expected to reopen the Strait of Hormuz, a critical route for global energy supplies.
Asian markets surge
Markets across the Asia-Pacific region advanced sharply.
- Japan’s Nikkei 225 rose 5.12%.
- South Korea’s Kospi gained 5.07%.
US markets had ended higher on Friday.
- Dow Jones Industrial Average added 0.7%.
- S&P 500 rose 0.5%.
- Nasdaq Composite gained 0.31%.
Oil prices decline
Crude oil prices fell after news of the agreement eased concerns over supply disruptions.
Brent crude June futures on the Intercontinental Exchange were quoted at $83.79 a barrel, down 3.5%.
Investors expect the reopening of the Strait of Hormuz to support the flow of global energy supplies.
Precious metals retreat
In the domestic market, gold and silver prices edged lower on Monday morning.
According to GoodReturns:
- Ten grams of 24-carat gold fell ₹10 to ₹1,49,070.
- Silver prices slipped ₹100 to ₹2,59,900 per kg.
Globally, however, gold and silver futures were trading 2.4% and 3.4% higher, respectively.
Technical outlook for Nifty
According to Vipin Kumar, Assistant Vice President, Technical and Derivative Research at Globe Capital Market, the Nifty has broken above its nine-day consolidation range.
He said sustained trading above the 24,000 level could confirm a breakout from the downward-sloping channel.
According to Kumar, the index may then move towards the 24,400-24,500 zone in the near term.
Stocks in focus
Several stocks are likely to remain in focus during Monday’s session, including:
- Reliance Industries
- Vedanta
- Oil and Natural Gas Corp (ONGC)
- Suzlon Energy
- Meesho
- SEPC
Analysts’ stock picks
Aakash Shah, technical research analyst at Choice Equity Broking, recommended:
- Krishna Defence
- Avalon Technologies
- TI India
IPO watch
Horizon Reclaim (India) IPO entered the second day of subscription.
The company plans to raise ₹54.27 crore through the public issue.
Bitcoin climbs
Bitcoin rose to its highest level in nearly two weeks after the US and Iran announced an agreement to end hostilities and reopen the Strait of Hormuz, boosting risk appetite among investors.
Deal signing expected on June 19
Reports said the United States and Iran have agreed to end the conflict and restore traffic through the Strait of Hormuz.
The agreement is expected to be signed on June 19 in Switzerland.
TL;DR:
GIFT Nifty climbed 349 points ahead of Monday’s trade as reports of a US-Iran peace agreement triggered a rally in Asian markets and pushed oil prices lower.
AI summary:
- GIFT Nifty rose 349 points to 24,035.
- Asian markets surged after reports of a US-Iran peace deal.
- Brent crude fell 3.5% to $83.79 a barrel.
- Analysts see Nifty targets of 24,400-24,500.
- Horizon Reclaim IPO entered its second day of subscription.
