Indian equity benchmarks extended their rally on Wednesday, with the BSE Sensex climbing 250+ points to trade at 77,050 mark, while the NSE Nifty50 gained 55 points to trade at 24,000 level. This marks the fourth consecutive session of gains for both indices, building on the sharp rally that pushed benchmark indices 4% higher over the past three sessions. The India VIX, which measures market volatility, tumbled around 7% to 13.36, indicating reduced market uncertainty. Broader markets also extended gains, with the Nifty Smallcap 100 and Nifty Midcap 100 indices gaining 0.3% each. Market breadth remained mostly positive, with 1,944 stocks advancing on NSE, while 1,348 declined and 123 remained unchanged, as reported by The Economic Times. All sectoral indices opened in the green except Nifty Metal and Nifty Realty. As many as 49 stocks touched their 52-week highs, while 11 hit fresh 52-week lows, with 54 stocks locked in the upper circuit and 20 hitting the lower circuit.
IndiGo, Mahindra & Mahindra, Infosys, Sun Pharma, HCLTech, Tech Mahindra, Adani Ports, Bajaj Finserv and HDFC Bank shares were the top gainers on Sensex, rising nearly 1% each. Maruti Suzuki shares, meanwhile, bucked the trend to fall around 1% in early trading hours on Wednesday. On the sectoral front, all indices except Nifty Metal and Nifty Realty opened in the green, with metal and cement stocks emerging as the only notable laggards as the Nifty Metal index declined more than 1%. In the midcap segment, 360 ONE WAM, Tube Investments, Lenskart and GMR Airports gained between 2-3%, while Dr Lal PathLabs, Devyani International and PG Electroplast rallied 3-8% in the smallcap segment. Hindalco Industries, Axis Bank, JSW Steel and Power Grid Corporation led the declines, with National Aluminium, Groww and MCX declining 2-4% in the midcap space and Aarti Industries, IFCI, Angel One and Ola Electric slipping 1-2% in early trade.
Iran and the US agreed to a framework for their much-awaited peace deal recently, with details of the interim agreement emerging on Tuesday. According to The Economic Times, US President Donald Trump said the deal would rule out a nuclear weapon for Tehran, while a US official said that it would allow Iran to sell oil upon signing. Oil prices continued to decline, falling below $80 per barrel amid rising optimism. Brent crude futures fell 0.28% to $78 per barrel, while WTI crude futures declined around 0.3% to $76 per barrel, as seen on Wednesday morning. Trump confirmed the development and said he had authorised an end to the US naval blockade of Iranian ports in the Strait of Hormuz. "Congratulations to all!" Trump wrote on social media, adding, "Ships of the world, start your engines. Let the oil flow!" This represents a significant improvement from earlier this year when oil prices had surged past $120 per barrel following the closure of the Strait of Hormuz, a development that had unsettled financial markets worldwide. Iran meanwhile said that the newly announced agreement with the United States puts an "immediate end" to the countries' war, with "A permanent and immediate end to the war has been declared on all fronts, including Lebanon," Iran's Deputy Foreign Minister Kazem Gharibabadi said in televised comments in the early hours of Monday. The agreement includes the reopening of the Strait of Hormuz to commercial shipping traffic, a critical development that has eased concerns over global oil supplies.
Major Indian stocks like L&T, KEC International are witnessing a significant rally amid bull market as the listed companies have significant exposure to the West Asia region. Larsen & Toubro share price gained over 3.33% to ₹4,184 apiece on the NSE in Monday's trading session. India's largest infrastructure company derives 37% of its order book from West Asia, while the region contributed 33% of its order inflows during the first nine months of FY26. KEC International share price also jumped over 3% to ₹520 per share after the US-Iran peace deal announcement. The company derived 20% of its order book and 28% of its order inflows from the region during the first nine months of FY26. Despite project execution challenges in West Asia and labour shortages in India, the firm remains confident of achieving 10–15% revenue growth in FY27. Adani Ports share price also witnessed a marginal rise amid a bullish trend on Dalal Street, surging 0.71% to ₹1,825 per share on the NSE. The stock remained in focus due to its international presence, including its operation of the Port of Haifa in Israel, which strengthens its strategic footprint across key maritime trade corridors and could position it to benefit from shifts in regional cargo flows. Rice exporters traded mixed, with LT Foods share price trading in the red while KRBL share price rose over 2.41% to ₹375.60 apiece on 15 June. LT Foods, known for its Daawat rice brand, generated 9% of its FY25 revenue from exports to the Middle East, while KRBL derived approximately 61% of its basmati rice export revenue from the West Asia and GCC markets. According to data from the Indian Rice Exporters Federation, as quoted by CNBC TV18, India exported basmati rice worth ₹4,049 crore to Iran between April and November 2025, while exports to Saudi Arabia were significantly higher at ₹5,217 crore during the same period. OMC stocks like Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil Corporation (IOC) jumped up to 4% after crude oil prices crashed over 5% on the US-Iran peace deal. HPCL share price gained the most by soaring over 3.84% to ₹403.85 per share, while BPCL and IOC shares also rallied 2.56% and 3.09%, respectively. IndiGo shares climbed 4% after crude oil prices dropped nearly 5%, and amid hopes of reopening of airways shut in the wake of the conflict. The recent escalation of geopolitical tensions in the Middle East had disrupted several flight routes and driven jet fuel prices sharply higher, with airlines worldwide, including IndiGo, implementing short-term measures to safeguard operational sustainability.
Oil prices continued to decline, falling below $80 per barrel amid rising optimism, with Brent crude futures falling 0.28% to $78 per barrel and WTI crude futures declining around 0.3% to $76 per barrel as seen on Wednesday morning. The peace deal is weighing on oil prices as markets anticipate a resumption of supplies through the Strait of Hormuz. Global markets remained supportive after Wall Street posted strong gains overnight, with the Nasdaq surging 3.1%, while the S&P 500 and Dow Jones advanced 1.7% and 0.9% respectively. The yield on the US 10-year Treasury note eased below 4.5%, while Asian markets traded mixed in early deals, although the overall tone remained constructive. Against this backdrop, the Nifty Oil & Gas index rose 2.22% to 11,257 during early trade, with the index quoted at 11,222, up 1.91% at last check. Among the index constituents, Chennai Petroleum Corporation and Bharat Petroleum Corporation were trading higher by over 4% each, while Hindustan Petroleum Corporation, Indian Oil Corporation, and Petronet LNG were up over 3% each. Gold futures were trading 2.4% higher while silver futures rose 3.4%, as investors sought safe-haven assets amid the geopolitical developments. For India, softer crude oil prices are viewed as a positive development, helping reduce inflationary pressures and supporting the country's external balances. The sharp upmove significantly boosted investor wealth, with the combined market capitalisation of BSE-listed companies rising by ₹8.5 lakh crore to ₹470.5 lakh crore over the past two trading sessions. Foreign Institutional Investors (FIIs) turned buyers after 13 sessions, purchasing shares worth a net ₹200 crore, while domestic institutional investors were net buyers to the tune of ₹3,189 crore.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp correction in crude oil prices and stability in the domestic currency are improving the macroeconomic backdrop for Indian equities. "The sharp correction in Brent crude to below $80 and stability in the rupee have the potential to impart resilience to the market. The strong macro headwind of rising BoP deficit is no longer a serious issue plaguing the economy. This positive development, in turn, has imparted stability to the rupee which has appreciated to ₹94.71 to the dollar from the recent low of ₹96.96," Vijayakumar said. He added that the improved macro environment could help moderate foreign institutional investor selling going forward, though he cautioned that renewed interest in artificial intelligence-linked trades and stronger momentum in markets such as South Korea and Taiwan may continue to divert foreign flows away from India. He also noted that current market valuations do not support a sustained rally, while warning that a prolonged shortfall in rainfall could stoke inflationary pressures. Vijayakumar further flagged the progress of the monsoon as a key risk factor, warning that a prolonged shortfall in rainfall could stoke inflationary pressures. The Indian rupee strengthened about 0.7% to 94.4625 per dollar on Monday, marking its highest level in seven weeks, with the rupee likely to continue its uptrend, dipping below 95 to the dollar. Nilesh Shah, MD, Kotak Mahindra AMC, believes that the announcement of the US-Iran deal propped up the market initially. "Focus will be on the normalisation on the ground with the supply chain flowing and prices coming back to double digits. The market will watch the spread of monsoon and AI flows, as well as guidance from the companies. We recommend clients follow asset allocation Dharma and remain neutral weight to equity with an Overweight on midcaps." Vinod Nair, Head of Research at Geojit Investments, said with crude oil prices easing to below $80 per barrel, concerns around inflation have moderated, supporting a more stable interest rate outlook and improving earnings visibility for FY27. He added that "The easing in geopolitical risks is also expected to moderate bond yields, FII outflows and strengthen the rupee, further reinforcing the positive market outlook."
