Shares of jewellery companies rose sharply in Monday's trade as gold prices climbed amid improving global sentiment and strong cues from international markets.

Gold futures for August delivery on the Multi Commodity Exchange of India (MCX) were trading Rs 2,412 or 1.6 per cent higher at Rs 1,52,940 per 10 grams, supported by strong spot demand and positive global trends.

In international markets, gold futures rose 2.27 per cent to $4,314.98 per ounce in New York.

Among listed jewellery stocks, Kalyan Jewellers India Ltd led the gains, rising 10.65 per cent to Rs 381.35 level at last check. Shares of Senco Gold Ltd climbed 4.09 per cent to Rs 352.15 apiece, while Titan Company Ltd advanced 2.07 per cent to Rs 4,273.60 on BSE.

Shares of Sky Gold and Diamonds Ltd, PC Jeweller Ltd and Thangamayil Jewellery Ltd were up 5.24 per cent, 3.58 per cent and 0.82 per cent, respectively.

The gains in jewellery stocks came alongside a strong rally in the market, with benchmark indices BSE Sensex and NSE Nifty50 surging more than 1 per cent each.

"US and Iran finally agreed to a peace deal which will end all hostilities including in Lebanon as well as reopen the Strait of Hormuz to commercial shipping traffic. The official signing of the deal will take place on June 19," SBI Securities said.

"With the dawn of peace in West Asia, hopefully, and the consequent sharp correction in Brent crude to below $84 in early trade, the prospects for the Indian economy and stock market have turned for the better. The GDP growth rate and CPI inflation projections for FY27 can be revised in this changed scenario to 6.9 per cent and 4.6 per cent respectively. This will have positive implications for the stock market," said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.