The SENSEX Index Closes 1.26% Higher

Indian stocks closed sharply higher on Monday, trimming losses from a three-session plunge that bottomed at a near-one-year low last session as markets reassessed the magnitude of risk that the war in Iran poses to energy supply shocks. The S&P/BSE Sensex gained Two tankers carrying liquified petroleum gas crossed the Strait of Hormuz for India over the weekend, reflecting some leniency from Tehran on energy from non-western tankers for delivery to the East. The developments eased concerns of an energy shortage to the Indian economy, which is among the world' top energy importers, that was already reflected in gas for factory operations and home cooking appliances. Consequently, inflationary risks eased and credit-sensitive sectors led the gains, with HDFC Bank, Bajaj Finance, and Bajaj Finserv gaining between 3% and 1.7%. Power hungry manufacturers also rose, with UltraTech Cement and Mahindra & Mahindra gaining over 3%.

The SENSEX Index went up by 939 points or 1.26 percent on Monday to close at 75503 points. The rise was led by UltraTech Cement (4.46%), Mahindra & Mahindra (3.34%) and HDFC Bank (2.69%).

India’s BSE Sensex rose 0.5% to around 74,900 on Monday, snapping a three-session losing streak, as hopes of easing energy supply worries offered temporary relief to markets rattled by Middle East tensions. Reports showed that a coalition of countries is set to escort ships through the Strait of Hormuz, while two India-flagged LPG carriers safely crossed the chokepoint last week. Foreign Minister Subrahmanyam Jaishankar said talks with Iran have yielded some results, though investors remain cautious for a more durable resolution. Oil prices stayed above $100 a barrel, keeping inflation and growth concerns elevated and pressuring the rupee. Among notable movers were Bajaj Finance (1.3%), State Bank of India (1.5%), Adani Power (2.4%), and JSW Steel (2%). Meanwhile, technology stocks mostly weighed on the index. Investors now await upcoming wholesale inflation and trade data for clues on the country’s economic health.