Welcome to BreakOut by 5paisa, your quick morning briefing on everything that matters before the markets open.

In today’s episode, Washington dominates headlines as U.S. President Donald Trump announces that any country conducting business with Iran will face a 25% tariff on its trade with the U.S., escalating economic pressure on Tehran amid nationwide protests. Back home, Amagi Media Labs raised ₹804 crore from 42 anchor investors ahead of its IPO opening today — setting the tone for the primary market.

On the Street, Indian equity benchmarks staged a sharp mid-session recovery on Monday after positive commentary from U.S. Ambassador Sergio Gor on continued engagement around a potential India–U.S. trade agreement. The Sensex closed 0.36% higher and the Nifty gained 0.42%, breaking a five-day losing streak, even as broader markets underperformed with midcaps and smallcaps ending in the red. Metals led sectoral gains, while pharma, media, realty, and capital goods lost ground.

Gift Nifty traded higher early this morning, hinting at a positive open, while derivatives positioning showed heavy open interest concentration around the 26,000 call and 25,500 put strikes. The Nifty put-call ratio improved to 0.9, even as volatility continued to inch higher with India VIX rising for the third straight session.

From the institutional side, FIIs remained net sellers while DIIs continued to support equities. Earnings from IT majors were in focus as labour cost adjustments dragged profitability with TCS and HCL Tech both reporting sequential declines. Globally, U.S. indices closed at record highs overnight, commodities saw profit-taking in bullion after a sharp rally, crude prices firmed up, and Asian equities opened higher led by a strong rebound in Japan.