Indian shares jump to two-week high as oil drops on Mideast peace talk hopes

Indian shares closed at a two-week high on Monday after Brent crude fell to a two-week low on optimism that the United States and Iran were moving closer to a peace deal, lifting risk appetite and helping financial stocks lead the rally.

The Nifty 50 ended at 24,031.70, up 1.32%, while the Sensex rose 1.42% to 76,488.96, according to Reuters. The benchmark indexes had also opened sharply higher earlier in the session as lower oil prices improved sentiment in a market sensitive to imported energy costs.

Financials were the main drivers of the advance. HDFC Bank and ICICI Bank both rose more than 2%, while oil marketing companies such as BPCL, HPCL and Indian Oil also gained as the drop in crude eased pressure on their margins.

The move followed a sharp decline in Brent, which fell to about $97.8 a barrel, its lowest level in two weeks. Reuters said the decline came after signs of progress in U.S.-Iran peace talks, though officials on both sides also downplayed expectations of an imminent breakthrough.

The session left Indian equities at their strongest close since May 8, underscoring how quickly the market can react to changes in global oil prices and Middle East risk.