Why are Indian shares expected to open higher on Monday, and what key development is driving this optimism?

Indian shares are set to open higher on Monday due to optimism surrounding a potential US-Iran peace deal, which has led to a drop in crude oil prices below $100 per barrel for the first time in over two weeks. U.S. President Donald Trump stated that Washington and Iran had 'largely negotiated' a memorandum of understanding aimed at ending the war and reopening the Strait of Hormuz — a critical global energy chokepoint that previously handled a fifth of global oil and LNG shipments.

What recent market movements and investor behavior reflect the impact of the Iran war on Indian equities?

Since the Iran war broke out in late February, the Nifty 50 and Sensex have declined 5.8% and 7.2%, respectively; foreign investors sold ₹44.4 billion ($464 million) worth of Indian shares on Friday alone, and have offloaded $23.9 billion in total so far this year — surpassing 2025's record annual outflows — indicating sustained foreign portfolio investor (FPI) pressure amid geopolitical uncertainty.

Indian Shares Set to Open Higher on US-Iran Peace Deal Optimism

May 24, 2026

Indian stocks rose as crude oil prices fell below $100 per barrel amid optimism over a US-Iran peace deal. Aluminium producer Hindalco reported lower profits despite higher base metal prices due to operational disruptions.

reuters

2026-05-24

Indian Shares Set to Open Higher on US-Iran Peace Deal Optimism

Indian Shares Set to Open Higher on US-Iran Peace Deal Optimism

FAQ