MUMBAI: Stock markets rose for the second straight session with benchmark Sensex closing higher by 736 points on Monday, propelled by a rally in global equities and a sharp decline in crude oil prices after the US and Iran finalised a deal to end their 107-day war.
The 30-share BSE Sensex jumped 736.38 points, or 0.97 per cent, to settle at 76,264.33. During the day, it zoomed 1,293.12 points, or 1.71 per cent, to 76,821.07.
Rising for the second day, the 50-share NSE Nifty surged 231 points, or 0.98 per cent, to end at 23,853.90. During the day, the benchmark rallied 388.5 points, or 1.64 per cent, to 24,011.40.
Sensex had rallied 1,695 points or 2.3 per cent and Nifty soared by 461 points or nearly 2 per cent in the previous session on Friday.
The US and Iran finalised a deal to end their 107-day war and open the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies, on Friday after an in-person signing of the agreement in Switzerland.
US President Donald Trump made the announcement on Truth Social on Sunday evening, easing pressure on the global energy markets, as officials said the peace agreement would be signed on June 19 in Switzerland.
Crude oil prices fell to three-month lows in global markets after the announcement of the US-Iran deal.
Global benchmark Brent Crude dropped 5 per cent to trade near USD 82.90 per barrel.
Among 30 Sensex firms, Trent, InterGlobe Aviation, Bajaj Finserv, UltraTech Cement, Eternal and Maruti were the major winners.
NTPC, ICICI Bank, Asian Paints and Hindustan Unilever were among the laggards.
In Asian markets, South Korea's Kospi jumped over 5 per cent, while Japan's Nikkei 225 index climbed nearly 5 per cent.
Shanghai's SSE Composite index and Hong Kong's Hang Seng index also ended higher.
Markets in Europe were trading in the green. US markets ended in positive territory on Friday.
"The easing of geopolitical tensions following the USA-Iran peace agreement is a significant positive for global risk assets. The immediate correction in crude oil prices is particularly encouraging for an import-dependent economy like India, as it helps alleviate inflationary pressures, improves macroeconomic stability, and provides greater policy flexibility," Rajesh Palviya, Head of Research, Axis Direct, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,082.18 crore on Friday, according to exchange data.
On Friday, the Sensex jumped 1,695.40 points, or 2.30 per cent, to settle at 75,527.95.
The Nifty ended sharply higher by 461.30 points, or 1.99 per cent, at 23,622.90.