Sensex surges 1.1k pts on renewed US-Iran talks

MUMBAI: Indian shares rose to a two-week high on Monday as signs of progress in US-Iran peace talks pushed oil prices lower and boosted investor appetite for risk assets.

US President Donald Trump said on Saturday that Washington and Iran had "largely negotiated" an MoU on a peace deal that would reopen the Strait of Hormuz, which carried a fifth of global oil and LNG shipments before the war.

The comments pushed Brent crude futures down 5.5% to $97.8 per barrel-its lowest in two weeks.

Nifty rose 312 points (1.3%) to 24,032 and sensex added 1,074 points (1.4%) to close at 76,489. This was their highest close since May 8.

Gains, however, were capped as US and Iranian officials played down hopes for an imminent breakthrough, analysts said. Fifteen of the 16 major sectors rose. The small-cap and mid-cap indexes gained 1.4% and 0.9%, respectively.

Heavyweight financials jumped 2.2%, led by 2.6% and 2.3% jump in private sector lenders HDFC Bank and ICICI Bank.

Foreign portfolio investors have offloaded domestic stocks worth $23.9 billion so far this year, surpassing last year's record annual outflows.

OMCs gain sharply

Oil marketing companies BPCL, HPCL, Indian Oil-which together control 90% of India's fuel market-gained 4.3%, 3.5% and 3.2% respectively after a sharp correction in crude oil prices and yet another rise in fuel prices on Monday.

Petrol prices were raised by Rs 2.6 a litre and diesel by Rs 2.7, the fourth increase in less than two weeks.

The latest price increase took cumulative hikes since May 15 to nearly Rs 7.5 per litre.

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