US-Iran Tensions Ease, Global Markets Rebound: Key Developments Impact Indian Stocks

Indian Stock Market Expected to Open Higher on Monday

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following a rally in global markets as signs of the US-Iran peace deal sent crude oil prices lower, easing inflation concerns and boosting investor sentiment.

Asian markets traded higher, while the US stock market surged, as investors cheered signs of progress in talks to end the US-Iran war in the Middle East. On Friday, the Indian stock market ended higher, supported by gains in select index heavyweights. The Sensex rose 231.99 points, or 0.31%, to close at 75,415.35, while the Nifty 50 settled 64.60 points, or 0.27%, higher at 23,719.30.

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Ajit Mishra, SVP, Research, Religare Broking Ltd, advised investors to maintain their focus on stock selection and disciplined trade management while keeping a close watch on position sizing.

Global Market Cues

Asian markets traded higher in a holiday-thinned trading, as crude oil prices dropped amid reports that the Strait of Hormuz may reopen soon. Japan's Nikkei 225 jumped 2.75% to hit a record of 65,081.96, while the Topix gained 0.65%. Markets in South Korea and Hong Kong are closed for public holidays.

In the US, the stock market ended higher on Friday, with the Dow Jones reaching a record closing high, and the S&P 500 notching its eighth consecutive weekly gain. The Dow Jones Industrial Average rallied 294.04 points, or 0.58%, to 50,579.70, while the S&P 500 gained 27.75 points, or 0.37%, to 7,473.47.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

US-Iran Peace Talks

US President Donald Trump claimed that Washington and Tehran were nearing a broad agreement aimed at easing tensions in the Gulf region and reopening the Strait of Hormuz. However, Iranian media rejected Trump's claim that the Strait of Hormuz would fully reopen under the proposed agreement, insisting that control over the strategic waterway would remain with Tehran.

US Consumer Sentiment

US consumer sentiment plunged to a record low in May. The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index dropped to a final reading of 44.8, an all-time low, from 48.2 earlier this month. The index was at 49.8 in April.

RBI Dividend

The Reserve Bank announced a record dividend of ₹2.87 lakh crore to the government for the year-ended March 2026. The dividend is 6.7% higher than ₹2.69 lakh crore for the 2024-25 fiscal year.

Fuel Price Hike

Petrol and diesel prices were raised by ₹2.61-2.71 per litre on Monday, marking the fourth increase in less than two weeks. Petrol price was increased by ₹2.61 a litre to ₹102.12 per litre in Delhi from ₹99.51.

Crude Oil Prices

Crude oil prices tumbled on hopes of a deal to reopen the crucial Strait of Hormuz. Brent crude prices plunged 5.08% to $98.28 a barrel, while US West Texas Intermediate declined 5.29% to $91.49 a barrel.

Gold Rate Today

Gold prices rallied over 1%, supported by a weaker dollar and lower oil prices, amid hopes of a US-Iran peace deal. Spot gold price gained 1.4% to $4,570.88 per ounce, while US gold futures for June delivery rose 1.1% to $4,572.90.

Dollar

The dollar weakened on hopes of a US-Iran peace deal. Against the yen, the US dollar fell 0.2% at 158.87 yen, while the euro rose 0.3% to $1.1642 and the British pound gained 0.4% to $1.3485.