
Banking stocks spearheaded gains in the afternoon session on Dalal Street on Friday, with Bank Nifty crossing the 56,000 mark and emerging as the biggest driver of the market rally amid easing geopolitical concerns and a sharp decline in crude oil prices. At 12:34 pm, the Sensex was up 733 points, or 0.99 per cent, at 74,565.55, while the Nifty 50 gained 186.25 points, or 0.8 per cent, to 23,347.85. The banking sector's strong performance was supported by strong buying in Yes Bank, Bank of Baroda, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Federal Bank. According to The Hindu BusinessLine, banking and financial stocks led the gains, followed by realty and consumer durables, while IT and oil & gas indices traded largely flat. Latest reports from The Economic Times confirm that from the NIFTY firms, InterGlobe Aviation, Shriram Finance, Bajaj Finance, Titan, HDFC Bank, Eternal, L&T, Bharti Airtel and Jio Financial Services were among the biggest winners. However, ONGC, Tech Mahindra, Coal India, Power Grid, Tata Consumer Products, SBI Life, Bajaj Auto and HCLTech were laggards from the pack. Nifty Bank emerged as the top performer in the week after the Reserve Bank of India (RBI) announced FCNR(B) relaxation and other forex related measures, closing 2.97% higher on Friday, June 12, with AU Bank, IDFC First Bank, Punjab National Bank, HDFC Bank, Yes Bank emerging as the top gainers.
The positive sentiment was further boosted by a sharp decline in crude oil prices, providing significant relief to import-dependent economies like India. Brent crude futures fell nearly 2 per cent to $88.66 per barrel in Asian trade, with the decline in oil prices also boosting demand ahead of the weekly debt auction. Latest data from The Economic Times shows that Brent crude, the global oil benchmark, slipped 1.62% to USD 88.92 per barrel after US President Donald Trump declared that the deal to end the war with Iran is nearly complete. The currency markets also responded positively, with the Indian rupee appreciating 65 paise to 95.20 against the US dollar in early trade, recovering from Thursday's close of 95.85. According to forex traders, easing crude oil prices, a weaker US dollar and strong domestic equity markets supported the local currency. At the interbank foreign exchange market, the rupee opened at 95.40 against the greenback before strengthening further to 95.20. The rupee had tumbled 60 paise on Thursday to settle at 95.85 against the US dollar, making Friday's recovery particularly significant for currency stability. The latest data shows that oil prices have declined more than 7% in the last week and more than 19% in the past month, with West Texas Intermediate (WTI) crude oil prices seen 4.3% lower at $83.91 per bbl as of June 12, compared to $87.71 per bbl at the previous market close.
Indian benchmark indices opened sharply higher on Friday, tracking a rally in global markets and a decline in crude oil prices after US President Donald Trump announced that the United States had ended the war with Iran. The 30-share BSE Sensex surged 921.30 points to 74,753.85 in early trade, while the NSE Nifty 50 climbed 254.20 points to 23,417.25. The strong rally came after Trump announced that the United States had ended the war with Iran, providing significant relief to global markets. Speaking to reporters at the Oval office on Thursday afternoon, Trump declared that the U.S. has ended the war with Iran, saying "I don't know if you heard, but we ended the war with Iran today (Thursday), and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose." According to The Hindu, Trump said a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, with Vice President JD Vance expected to attend the signing ceremony. When asked if Iran's Supreme Leader Ayatollah Mojtaba Khamenei has approved the deal, Trump said, 'I understand the answer is yes'. However, Iran has countered the claim, saying it had not reached a final decision on an agreement, with Iranian media reporting that Foreign Ministry spokesperson Esmaeil Baghaei stating that large parts of the negotiating text have been finalized but Iran would not compromise on its red lines. Latest reports from The Economic Times confirm that Trump said on the Truth Social platform that "Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening."
Broader markets continued to outperform the benchmark indices, with the Nifty Midcap 100 rising 1.17 per cent, while the Nifty Smallcap 100 gained 1.64 per cent. In the midcap segment, Vodafone Idea, LTF, Ashok Leyland, Motilal OFS, Tata Investment and Tube Investments advanced 3-5 per cent, while Oil India, ICICI Lombard, Lenskart and Bharat Forge declined 1-2 per cent. Among smallcaps, IFCI, Data Patterns, Netweb Technologies and JBM Auto surged 5-19 per cent, while Gland Pharma, Meesho and Affle slipped 1-2 per cent. On the BSE, IFCI, MTAR Tech, Authum Investments, Ixigo and Goldiam International rallied 11-19 per cent, while Cemindia Projects, ONGC, Uno Minda and Oil India fell 3-5 per cent. According to The Hindu BusinessLine, the Nifty's advance-decline ratio stood at a healthy 37:13, indicating broad-based market participation. Latest reports from The Economic Times confirm that the NIFTY50 climbed 0.77% to 23,340 at 1:16 pm, with the SENSEX jumping 729 points to 74,552. The market breadth showed strong participation across sectors, with from the NIFTY firms, InterGlobe Aviation, Shriram Finance, Bajaj Finance, Titan, HDFC Bank, Eternal, L&T, Bharti Airtel and Jio Financial Services were among the biggest winners.
The equity benchmark indices snapped their losing streak and ended the week on a positive note, with the NIFTY50 surging 256.2 points, or 1.1%, during the week, while the BSE SENSEX gained 1,284.61 points, or 1.7%. After Friday's rally, the stock investors became richer by ₹9.66 lakh crore, with the market capitalisation of BSE-listed companies surging by ₹9,66,538.35 crore to ₹4,62,00,318.80 crore ($4.84 trillion). The NSE-listed firms' market capitalisation stood at ₹462 lakh crore. During the week, the Nifty Midcap 100 ended flat while the Nifty Smallcap 100 advanced 0.5%. Among sectors, the Nifty Private Bank index was the biggest gainer, jumping 5.1%, followed by Nifty Bank, which rose 4.3%, while Nifty PSU Bank and Nifty FMCG climbed 3.3% and 1.1% respectively. The Nifty Pharma index ended the week 0.5% higher, while the Nifty IT (-4.2%), Nifty Metal (-2.8%), Nifty Media (-1%), Nifty India Defence (-0.9%), and Nifty Oil & Gas (-0.8%) were the top losers by the end of the week. India VIX, the volatility gauge, stood at 14.72 levels, slipping 6.8% during the week.