Indian Stocks Rise on Monday

Indian stocks closed firmly higher on Monday, tracking an improvement in macroeconomic conditions as key energy prices extended their decline. The S&P/BSE Sensex added 0.4% to 77,095 and the NSE Nifty 50 added 0.4% to 24,103. Reports indicated that the start of talks between Iran and the US progressed over the weekend, backing expectations that a longer-term peace deal could be struck in the next two months for energy exports from the Middle East to flow without interruption. Lower oil prices improve the outlook for the Indian economy by softening inflation expectations and supporting the rupee due to India’s reliability on energy imports, lifting foreign inflows on Indian equities. Tech stocks closed higher, with Tech Mahindra and Infosys advancing 2.2% and 1.3%, respectively. Financial companies also gained with Bajaj Finserv, HDFC Bank, and Bajaj Finance rising between 1% and 0.5%.
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