Indian benchmark indices closed with strong gains on Tuesday, extending their winning streak to a third consecutive session as equity markets continued their recovery momentum. The BSE Sensex settled 544.15 points or 0.71% higher at 76,808.48, while the NSE Nifty 50 advanced 135.25 points or 0.57% to close at 23,989.15, just below the key 24,000 level. According to The Economic Times, the Sensex jumped more than 540 points during the session, with the Nifty 50 up more than 135 points at 23,989, extending Monday's rally based on the US-Iran deal in a more measured manner. The gains were supported by strong buying in select heavyweight stocks, with the positive momentum helping lift the broader market. The Nifty MidCap index gained 0.4% and the Nifty SmallCap index also gained 0.4%, indicating broad-based participation in the rally. The India VIX declined nearly 7% to slip below the 14 mark, indicating improved investor confidence and reduced market volatility.
The market rally was primarily driven by improving global risk sentiment after a preliminary US-Iran peace deal eased concerns over energy supply disruptions and pushed crude oil prices lower. As per The Hindu, the U.S. and Iran reached an agreement on Sunday (June 16) to reopen the Strait of Hormuz, a move expected to facilitate the resumption of oil and natural gas shipments through one of the world's most important energy transit routes. Iran has indicated implementation will begin only after a formal signing ceremony, which Pakistan, a key mediator in the negotiations, said is scheduled to take place in Switzerland on Friday (June 19, 2026). Brent crude, the global oil benchmark, traded 20% lower at $81.45 per barrel, with LNG benchmark prices also softening following the agreement. Market participants remained encouraged by the easing of geopolitical tensions following the US-Iran deal announcement, which helped improve global market sentiment and supported risk assets. However, gold was trading at around USD 4,345.03 at the time of writing, while the Indian rupee was trading at around 94.56 against the USD, showing some volatility in the currency markets.
Sectoral performance remained mixed with real estate, IT and media emerging as the strongest gainers while metals, healthcare, cement and pharma remained weak, limiting broader momentum with leadership shifting towards technology and domestic-facing sectors. According to The Economic Times, IT, realty, FMCG and oil & gas stocks provided broad-based support to the rally, with the positive momentum helping lift the broader market. Among the 30 Sensex firms, HCL Tech, Bajaj Finserv, NTPC, Hindustan Unilever, TCS, Bajaj Finance, Reliance, Tech Mahindra, ITC were the top BSE gainers, while Maruti, Tata Steel, Sun Pharma, Power Grid, Trent were the biggest losers. Banking and financial stocks provided moderate support to benchmark indices, with the rally being broad-based, with notable gains in IT, realty, FMCG, and oil & gas sectors. The NSE's India VIX declined nearly 7% to slip below the 14 mark, indicating improved investor confidence.
Among Nifty 50 constituents, HCL Tech, Tata Consumer Products, Bajaj Finserv and NTPC led the gainers, while IndiGo, UltraTech Cement, Maruti Suzuki India, Tata Steel, State Bank of India and Sun Pharma were among the top losers. As reported by The Economic Times, Reliance Industries emerged as the most active stock in terms of turnover with ₹2,456 crore, followed by HDFC Bank at ₹2,182 crore and ICICI Bank at ₹1,740 crore. In terms of volume, Vodafone Idea led with 49.24 crore traded shares, followed by Suzlon Energy at 29.24 crore and Yes Bank at 21.94 crore. Sonata Software, FACT, MMTC, PG Electroplast, Century Textiles, Netweb Technologies and Brigade Enterprises witnessed strong buying interest from market participants. Among the ones which hit their 52-week highs on NSE included FACT, MMTC, Kalpataru Power, Bandhan Bank, Capri Global, Dr Lal Pathlabs and Aditya Birla Capital, while Bayer Cropsciences and P&G hit their 52-week lows. Market breadth remained firmly positive with 1,956 stocks advancing, 1,356 declining and 104 remaining unchanged on the National Stock Exchange.
Oil and LNG prices are expected to ease following the US-Iran agreement, though analysts warn of a prolonged recovery timeline. According to Crisil Intelligence, Brent crude has retreated about 20% from recent highs, with LNG benchmark prices also softening due to the prospect of normalized shipping through the Strait of Hormuz. However, Prashant Vasisht from ICRA Ltd warns that oil prices could take six months to one year to return to pre-war levels due to ongoing uncertainties surrounding implementation and potential supply disruptions. The cumulative under-recovery on petrol, diesel and liquefied petroleum gas during March-May 2026 is estimated at approximately ₹1 lakh crore, though this is expected to remain stable if Indian crude basket stays below $90 per barrel. Sehul Bhatt from Crisil Intelligence noted that softer crude prices would help contain inflation and reduce India's energy import bill, providing some relief to fuel retailers.
