Indian equities experienced a significant rally, with the benchmark Sensex gaining 941 points (1.2%) to close at 77,959 and the Nifty rising 298 points (1.2%) to 24,331. This marked the best performance for both indices since April 15, 2026. The surge was largely attributed to optimism surrounding potential peace negotiations between the US and Iran, as reports indicated that Iran is considering a new proposal from the US that could lead to the reopening of the Strait of Hormuz and the lifting of the American blockade on Iranian ports. In tandem, Brent crude oil prices fell to $102 per barrel, down 7%, alleviating some pressure on India's economy, which is heavily reliant on crude imports. The total market capitalization of BSE-listed firms rose by ₹6 trillion to reach ₹473 trillion. Additionally, the Indian government's approval of an ₹18,100 crore emergency credit guarantee program was aimed at supporting businesses facing liquidity challenges due to the West Asia crisis. Analysts noted that the domestic market was buoyed by a risk-on sentiment, driven by easing tensions in the Middle East and strong earnings from the technology sector. Despite these gains, experts advised a selective investment strategy due to ongoing input cost pressures and forex risks.