Sensex Jumps 997 Points as BJP Makes Gains in Bengal; Oil Cools After Trump Guarantees Hormuz Passage

Equity markets rally on election trends and crude relief; rupee weakens past 94.90 against dollar

Indian equity markets staged a sharp recovery on Monday as early election trends showed the Bharatiya Janata Party putting up a strong challenge in West Bengal, while cooling oil prices provided additional relief to investors.

The 30-share Sensex surged 997 points to close at 77,501 levels, while the broader Nifty added nearly 300 points to settle at 24,176. Buying was visible across sectors, with banking and auto stocks leading the charge.

Election Trends Lift Sentiment

Early counting trends from West Bengal indicated that the BJP was giving the ruling Trinamool Congress a tough fight, defying most exit polls. The party also maintained leads in Assam, boosting investor confidence about political stability.

According to traders familiar with market sentiment, the possibility of a change in guard in Kolkata has been interpreted as positive for business continuity in the eastern state.

"The market is reading these leads as a signal for policy predictability," said a senior analyst with a domestic brokerage, requesting anonymity.

Trump Announces Hormuz Passage Guarantee

Oil prices cooled after US President Donald Trump said Washington would begin facilitating the movement of stranded vessels through the Strait of Hormuz for all countries except Iran starting Monday.

"For the good of Iran, the Middle East, and the United States, we have told these countries that we will guide their ships safely out of these restricted waterways," Trump posted on his social media platform.

The announcement came amid heightened tensions in the Gulf region over the past fortnight. While the White House did not specify which countries had sought assistance, officials familiar with the matter said several Asian nations, including India, had expressed concerns over supply disruptions.

Crude Falls Below $108

Brent crude futures dropped to $108 per barrel following the development, marking a sharp decline from last week's highs. The movement brought immediate relief to market participants worried about India's import bill.

Lower oil prices are particularly significant for India, which meets nearly 85 percent of its crude requirements through imports. Any sustained fall could help rein in inflationary pressures that have been building up over recent months.

Asian Markets Rally, US Closed Mixed

Other Asian indices also advanced Monday tracking the positive cues. South Korea's KOSPI jumped over 4 percent, while Hong Kong's Hang Seng added 1.73 percent. Japan's Nikkei posted modest gains of 0.38 percent.

US markets had closed on a mixed note Friday, with the Dow Jones shedding 152 points while the Nasdaq gained 222 points.

Rupee Under Pressure

Despite the rally in equities, the rupee weakened 9 paise to trade at 94.93 against the US dollar in morning deals. Dealers attributed the fall to sustained dollar demand from importers and some foreign outflows.

The currency has been hovering near record lows in recent weeks, pressured by global uncertainties and trade imbalances. A cooler crude price, however, could ease some pressure going forward, according to currency analysts.

What Lies Ahead

Market participants will watch the final election results closely through the day. A clear mandate in key states remains critical for sustaining the current momentum, traders said.

Meanwhile, the oil market's response to Trump's guarantee over the coming days will determine whether the relief is temporary or more durable. The Strait of Hormuz remains a flashpoint, with about a fifth of global petroleum consumption passing through the waterway.