The US-Iran deal sent risky global asset classes soaring on Monday, as India joined the emerging market (EM) rally with Sensex and Nifty rising 1 per cent each. Oil-sensitive stocks such as InterGlobe Aviation (IndiGo), BPCL, HPCL and IOC, among others, spurted 4 per cent each; banking stocks too witnessed strong gains. Shares of tyre, chemicals and paints makers jumped. Larsen & Toubro Ltd, which has exposure to West Asia, gained rose nearly 3 per cent. 

The BSE Sensex surged 1,110.70 points or 1.47 per cent to 76,638.65. Nifty climbed 330.40 points or 1.40 per cent.
 
"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.    

IndiGo shares rose 3.65 per cent to hit a high of Rs 4,880.60 on BSE. In its earnings call on May 29, IndiGo had noted that benchmark jet fuel prices spiked significantly over the past three months, materially impacting operating economics across markets. HPCL, BPCL and IOC advanced 4 per cent each. L&T added 3.23 per cent to Rs 4,180.20. Apollo Tyres, CEAT and MRF gained 3-4 per cent.

"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 19th June. News of this imminent peace deal was already out on Friday during market hours leading to a sharp intra-day rally with the Nifty 50 ending 2 per cent higher," SBI Securities said.

Aakash Shah, Technical Research Analyst at Choice Equity Broking said Nifty has confirmed a consolidation breakout after several sessions of range-bound movement. The formation of a strong bullish candle on Friday, along with a close above key retracement levels, indicates accumulation at lower levels and strengthening demand. 

"Follow-through buying in the upcoming sessions would further validate the breakout and improve the probability of an extension toward higher resistance zones," Choice Equity Broking said.  

Earlier from Iran, the IRIB (Islamic Republic of Iran Broadcasting) announced the end of the “imposed war,” declaring the United States had been forced to accept an end to the conflict after the “steadfastness and brave resistance” of Iran’s armed forces and people. The state broadcaster described the reported agreement as a victory for Iran.

In a post Trump said: "This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World! President DONALD J. TRUMP."