Indian equities rallied after signs of a US-Iran deal eased tensions and oil prices slid. The move improved the outlook for inflation, the rupee and near-term market flows.

The S&P BSE Sensex surged 1,695.40 points, or 2.30%, to close at 75,527.95, while the NSE Nifty50 jumped 461.30 points, or 1.99%, to settle at 23,622.90.

Indian markets opened sharply lower on Monday as rising Middle East tensions, higher crude prices and global weakness hit sentiment. The slide sharpened concerns over inflation, foreign outflows and pressure on technology stocks.