June 15 (Reuters) – Indian shares climbed higher at the open on Monday, tracking a global rally, as oil prices tumbled after U.S. President Donald Trump and Iran’s deputy foreign minister said an initial deal had been reached to end the war and resume traffic through the Strait of Hormuz.
The countries will sign a memorandum of understanding in Switzerland on Friday, said Pakistani Prime Minister Shehbaz Sharif, whose country served as a mediator in the negotiations.
The benchmark Nifty 50 rose 1.53% to 23,984.85, while the BSE Sensex added 1.59% to 76,725.27, as of 9:15 a.m. IST.
The Nifty 50 and Sensex rose about 2% and 2.3% on Friday as optimism of a diplomatic breakthrough in the four-month long U.S.-Iran war boosted risk appetite.
Other Asian markets jumped 2.9%, while Brent crude dropped 4.6% to about $83 a barrel, the lowest since March. [MKTS/GLOB]
Lower oil prices are a positive for India, the world’s third-largest oil importer, as they help ease pressure on inflation, the rupee and the country’s trade deficit.
All 16 major sectors advanced. The broader small-caps and mid-caps rose 1.6% each.
Oil marketing companies, tyre, paint makers and airlines also jumped on drop in crude prices
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Nivedita Bhattacharjee)