Indian equity benchmarks extended their gains for a fourth consecutive session on Wednesday, with the SENSEX rising as much as 411 points and NIFTY50 index touching an intraday high of 24,108. As per Upstox Securities, the rally was powered by softer crude oil prices, with Brent crude for August 2026 settlement gaining 41 cents or 0.52% to $79.37 per barrel following optimism around the US-Iran peace agreement that could ease supply disruptions and improve India's macroeconomic outlook. The broader market outperformed with BSE 150 MidCap Index gaining 0.41% and BSE 250 SmallCap Index adding 0.50%, while market breadth remained strong with 2,281 shares rising and 1,848 declining on the BSE. The benchmarks have now risen nearly 3% over the last two sessions following the announcement of a preliminary peace agreement between the United States and Iran. However, the quantum of gains declined as the deadline to open the Strait of Hormuz looms, reflecting investor caution despite the positive momentum.
Defence shares emerged as the strongest pocket of the market, with the Nifty Defence index being the top-gaining sectoral gauge, with all of its constituents closing higher. According to CNBC TV18, Paras Defence surged 18%, while Bharat Dynamics and Cochin Shipyard were among the top gainers in the midcap segment. The defence rally was supported by continued optimism around India's defence modernisation and strategic capabilities. From the SENSEX basket, Trent Ltd, Hindustan Aeronautics Ltd, Bharat Electronics Ltd, Hindalco Industries Ltd, Eternal Ltd and Tata Steel Ltd were the major gainers. Among other stocks, NBCC rose more than 3% after reporting commercial space sales worth ₹2,857 crore in New Delhi, while BPCL gained 2% in the energy space. The rally was led by gains in Trent, Bharti Airtel, Bharat Electronics, Infosys, State Bank of India and Reliance, as per Upstox Securities, demonstrating broad-based strength across key sectors. Defence stocks rallied after India recorded its highest-ever defence production and exports in FY26, further boosting investor confidence in the sector's growth prospects.
IDBI Bank jumped 19% following reports related to divestment, making it one of the biggest gainers of the day. As per CNBC TV18, Yes Bank also featured among the leading gainers in the midcap space. The Nifty Bank index advanced 288 points to close at 57,085, while the Bank Nifty gained 0.50% in today's session to end at 57,585.05. Heavyweight stocks led the charge, with Bharti Airtel, SBI, Infosys and Reliance Industries being the biggest contributors to the Nifty's gains. Tata Capital rose 0.43% after the company announced its board approved a proposal to raise up to ₹36,000 crore through non-convertible debentures on a private placement basis, subject to shareholder approval. Coforge shares traded 0.23% higher at ₹1,468 after the company's Investors' Day 2026, with management targeting $5 billion revenue by FY2030 amid AI tailwinds. In the banking space, Yes Bank, Bank of Baroda, Union Bank of India, Canara Bank and State Bank of India led gains, while Axis Bank and Kotak Mahindra Bank declined. Siddhartha Khemka from Motilal Oswal emphasised that the banking sector remains well-positioned, with banking system credit growth at a robust 17.6%, supported by broad-based demand across corporate, retail and MSME segments.
The biggest catalyst for the market surge has been the US-Iran peace agreement finalised between June 14 and June 15, 2026, which significantly reduced concerns over a broader conflict in West Asia and eased fears of disruptions in the Strait of Hormuz, one of the world's most critical oil shipping routes. The improvement in global risk sentiment sparked a sharp rebound across equity markets, with the Nifty 50 gaining around 800 points, or nearly 4%, leading to a marked improvement in investor confidence and risk appetite. Since the announcement of the peace agreement, the Nifty 50 has gained around 800 points, or nearly 4%, leading to a marked improvement in investor confidence and risk appetite. The deal has provided substantial relief to markets by removing the immediate threat of supply disruptions that had been weighing on sentiment. Vinod Nair from Geojit Investments noted that the market's upward momentum was supported by softer bond yields, a firmer rupee and continued weakness in crude oil prices, with easing geopolitical tensions around the Strait of Hormuz keeping crude prices under pressure. Vikram Kasat from PL Capital highlighted that Brent crude remaining below $78 per barrel has significantly improved India's near-term inflation outlook, supported corporate margins and strengthened macroeconomic stability. Markets widely expect the Fed to keep interest rates unchanged at its first meeting under Chair Kevin Warsh, with investors closely watching the central bank's commentary for signals on the future policy path.
Market breadth remained positive, with advancing stocks outnumbering declining stocks on the NSE, with the advance-decline ratio standing at 3:2. According to CNBC TV18, the Nifty Auto index emerged as the worst-performing sectoral gauge, with Tata Motors falling sharply after Jaguar Land Rover's FY27 outlook and ending as the top loser on the Nifty, while Eicher Motors was also among the major laggards. In the midcap segment, Dixon Technologies, Voltas, Info Edge, Nykaa and Blue Star rallied 3-4%, while Oberoi Realty, National Aluminium, SAIL, Godrej Properties and MCX declined 1-2%. Among smallcaps, Brigade Enterprises, Five-Star Business Finance, Kaynes Technology, Redington and Pine Labs gained 3-6%, while City Union Bank, Devyani International, Aditya Birla Real Estate and CESC slipped 1-2%. Metal shares emerged as standout performers with the NIFTY Metal Index rising 0.83% to 12,988.35, led by Hindalco Industries up 2.71%, Vedanta up 2.18%, Jindal Stainless up 2.16%, and Tata Steel up 1.49%. More than 120 stocks touched their 52-week high on the BSE, including Data Patterns, Yes Bank, KEI Industries, Kirloskar Oil, Nuvama Wealth, Polycab, CG Power, Aegis Logistics, Himadri Speciality, IFCI, Varun Beverages, JK Bank, Pidilite Industries, Federal Bank, Netweb, Bandhan Bank, among others. Ponmudi R from Enrich Money noted that India VIX declined to a three-month low, signalling a significant reduction in near-term uncertainty and risk aversion, with the volatility index declining 1% to 13.19.
Investor sentiment was further supported by continued institutional participation, with Domestic Institutional Investors (DIIs) recording net inflows of ₹48,382 crore in June (till June 12) after robust net buying of ₹82,669 crore in May. While Foreign Institutional Investors (FIIs) remained net sellers with net outflows of ₹43,361 crore in June (till June 10) against net outflows of ₹55,963 crore in May, the pace of outflows slowed compared to May. The steady domestic buying helped absorb foreign selling pressure and ensured liquidity support for the market. On the technical front, the Nifty 50 crossed the key 24,000 resistance level, triggering fresh buying and short-covering across the broader market. The rally has been broad-based, with heavyweight sectors playing a leading role, as Financial Services emerged among the top performers, rising around 6% over recent weeks amid strong institutional buying, while the Nifty Realty index gained approximately 5.8% and the Nifty IT index advanced 1.73% during the week. Broader markets outperformed with the midcap index rising 0.52% and the smallcap index gaining 0.79%, while IT shares also advanced 0.85% ahead of the Federal Reserve's policy announcement, with the Nifty IT index reclaiming the 29,000 mark during intraday trade.
