The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are likely to open higher on Monday as a rally in the overnight global markets and signs of progress in the US–Iran peace deal pushed crude oil prices lower, eased inflation worries, and improved investor sentiment.

Asian markets traded higher, while the US stock market surged as investors welcomed signs of progress in negotiations aimed at ending the US–Iran conflict in the Middle East.

Moreover, on Friday, the Indian stock market closed higher, supported by gains in select heavyweight stocks.

Domestic Market Recap

On Friday, Indian indices green:

• Sensex gained by 231.99 points (0.31%) to close at 75,415.35
• Nifty 50 moved up by 64.60 points (0.27%) to settle at 23,719.30

Gift Nifty

Gift Nifty was trading near 23,995, around 251 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Friday, with the Dow Jones Industrial Average reaching a record closing high, while the S&P 500 recorded its eighth straight weekly gain.

• The Dow Jones Industrial Average soared by 294.04 points (0.58%) to close at 50,579.70
• S&P 500 was up by 27.75 points (0.37%), ending at 7,473.47.
• The Nasdaq Composite was higher by 50.87 points (0.19%), finishing at 26,343.97.

Crude Oil Prices

• Brent crude crashed by 5.08% to $98.28/barrel
• US West Texas Intermediate (WTI) crude was trading 5.29% lower at $91.49/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran Peace Talks: US President Donald Trump claimed that Washington and Tehran were close to finalising a broad agreement aimed at reducing tensions in the Gulf region and reopening the Strait of Hormuz. In a post on Truth Social, Trump said negotiators had “largely” completed the deal and only final details remained before an official announcement. However, Iranian media rejected Trump’s claim that the Strait of Hormuz would fully reopen under the proposed agreement, insisting that Tehran would retain control over the strategic waterway.
2. RBI Dividend: Reserve Bank of India announced a record dividend payout of Rs 2.87 lakh crore to the government for the financial year ended March 2026. The payout is 6.7% higher than the Rs 2.69 lakh crore dividend transferred in FY25.
3. Fuel Price Hike: Petrol and diesel prices increased by Rs 2.61–2.71 per litre on Monday, marking the fourth hike in less than two weeks. In Delhi, petrol prices rose to Rs 102.12 per litre from Rs 99.51, while diesel prices increased to Rs 95.20 per litre from Rs 92.49.
4. US Consumer Sentiment: US consumer sentiment dropped to a record low in May. The University of Michigan Consumer Sentiment Index fell to a final reading of 44.8 from 48.2 earlier in the month and 49.8 in April. Economists surveyed by Reuters had expected the index to remain unchanged at 48.2.

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