BT Closing Bell: Sensex up 639 pts, Nifty at 24,093; Sun Pharma, RIL top gainers; key highlights

Benchmark Sensex and Nifty climbed 0.8 per cent each on Monday, led short coverings and improving global sentiment. Buying in shares of Reliance Industries Ltd, Sun Pharmaceuticals Industries Ltd, HDFC Bank Ltd and a couple of IT names lifted the two indices, but the rise in broader markets was trigerred by Iran reportedly sharing a new proposal with the US ​on ​reopening of the Strait ⁠of ​Hormuz and the ​ending of the war. This is even as it suggested ​postponed of ​nuclear negotiations for a ‌later ⁠stage. Brent crude prices stayed above $101 a barrel level, but investors chose to ignore it. Here's why stock market indices jumped today:-

US-Iran talk hopes 
The NSE Nifty closed the day at 24,092.70, up 194.75 points or 0.81 per cent. Nifty settled at 77,303.63, up 639.42 point or 0.83 per cent. A key catalyst behind today’s strength was improving global sentiment, particularly reports of a potential de-escalation between the US and Iran around the Strait of Hormuz. This development eased supply disruptions and supported global risk appetite, helping domestic markets stabilise and rise, said Hariprasad K, SEBI-registered Research Analyst and Founder at Livelong Wealth.  

The US President Donald Trump, meanwhile,  said Iran could telephone if it wants to negotiate an end to their two-month war. 

Vinod Nair, Head of Research, Geojit Investments at investor sentiment improved on renewed prospects for the resumption of US–Iran talks, coupled with stronger-than-expected Q4 FY26 earnings. Although oil prices remain above $100 per barrel and markets continue to assess the room for the opening of the Strait of Hormuz, domestic-oriented sectors—particularly Banking, FMCG, capital goods, consumer discretionary, and manufacturing-related businesses—supported the recovery, he said.

"IT sector, despite reporting subdued results, attracted investor interest due to valuation comfort and long-term accumulation strategies. Inflation risks remain a key concern, and market participants are expected to closely monitor the upcoming FEDs policy announcement, particularly its medium-term interest rate trajectory," Nair. 

Sun Pharma, RIL lead gainers
Sun Pharmaceuticals Industries Ltd led the Sensex gainers, surging 6.98 per cent to Rs 1,732.95, as it announced acquisition of Organon & Co for $14 per share in cash, or approximately $3.99 billion in total equity value. The acquisition will be effected by acquiring all the outstanding shares of Organon in an all-cash transaction with an enterprise valuation of approximately $11.75 billion.

Reliance Industries gained 3.19 per cent to Rs 1,370 as investor bet on Reliance Jio Platform Ltd and chose to ignore muted Q4 results. 

"We upgrade RIL to 'Buy' from 'Accumulate' as the stock has corrected 8 per cent in the past six months, factoring in slower Retail growth, while GRMs may be stronger post normalization of Hormuz traffic versus pre-war expectations. Current macro – volatile crude and strong distillates amid logistics disruption and policy intervention via windfall taxes – does not bodes well in the near term," Elara Securities said. 

Short coverings
The key highlight of the session was short covering along with value buying after the recent correction, supported by improved global cues and stabilisation in broader markets, said Aakash Shah, Research Analyst at Choice Equity Broking. 

"Despite previous selling pressure, today’s recovery indicates that investors are selectively accumulating quality stocks at lower levels. Broader markets also participated in the upmove, reflecting improved sentiment," he said.