Realty Share Leads as DLF and Godrej Properties Rally, Auto Revs Up as Eicher Motors and Maruti

Mumbai, June 15: Indian markets witnessed a broad-based rally on Monday, with nearly all sectoral indices ending in positive territory as easing geopolitical tensions in the Middle East and a sharp fall in crude oil prices boosted investor sentiment. The rally was triggered by a preliminary peace agreement between the United States and Iran, which eased concerns over disruptions to global energy supplies and sent crude prices sharply lower. 

Lower oil prices are particularly beneficial for India, one of the world’s largest crude importers, as they help ease inflationary pressures, improve the current account outlook and reduce input costs for several sectors. Investors responded by aggressively buying rate-sensitive, consumption-linked and crude-sensitive stocks. 

Realty Emerges Top Gainer 

Real estate stocks led the market higher, with the Nifty Realty index surging nearly 4% to emerge as the best-performing sector of the day. 

The rally was driven by expectations that lower crude prices could support a benign inflation environment and improve the prospects for accommodative monetary policy. Investors also remained optimistic about sustained housing demand and improving affordability. 

Heavyweights such as DLF, Godrej Properties, Prestige Estates, Oberoi Realty and Phoenix Mills were among the key contributors to the sector’s gains. DLF share price rose 4.67% while Godrej Properties share price advanced 4.42%. Prestige Estates share price increased 6.14%.  

Auto Stocks Accelerate 

Automobile stocks also witnessed strong buying interest, with the Nifty Auto index gaining 2.6%. 

The sector benefited from expectations that lower fuel prices could support vehicle demand while softer commodity and energy costs may help improve margins. Passenger vehicle makers, two-wheeler manufacturers and auto ancillary companies all participated in the rally. 

Nifty Auto advanced as crude crash inspired confidence among stocks. Source:NSE 

Among the notable gainers were Eicher Motors, Mahindra & Mahindra, Tata Motors Passenger Vehicles and Maruti Suzuki. Eicher Motors share price added 4.27% while Mahindra & Mahindra share price revved up 3%. Maruti Suzuki India rose 3.28% while Tata Motors Passenger Vehicles share price advanced 1.64%. 

Investors also favoured tyre manufacturers, which stand to benefit from lower crude-linked raw material costs. 

Consumer Durables and Metals Advance 

The Nifty Consumer Durables index rose 2.9%, supported by optimism that easing inflationary pressures could strengthen discretionary spending. 

Stocks such as Titan, Kalyan Jewellers India, Voltas, Whirlpool and Havells India attracted buying interest as investors rotated into consumption-oriented themes. Kalyan Jewellers India share price rose 11.09% while Voltas share price increased 3.19%. 

Metal shares also advanced, aided by improving global risk sentiment and hopes that lower energy costs could support profitability. The Nifty Metal index ended firmly higher, with stocks including Hindustan Copper and National Aluminium Company contributing to the gains. 

Aviation, Paints, Refiners Among Key Beneficiaries 

One of the clearest beneficiaries of the fall in crude prices was the aviation sector. 

Shares of InterGlobe Aviation, which operates IndiGo, rallied sharply as investors anticipated lower aviation turbine fuel (ATF) costs. SpiceJet and other travel-related stocks also gained. 

Paint manufacturers, chemical companies and oil-sensitive industrial businesses witnessed buying interest as investors factored in the potential benefits of lower input costs. Asian Paints, Berger Paints and Kansai Nerolac remained in focus throughout the session. Refiners rallied after crude prices slumped, with BPCL, HPCL and Indian Oil among gainers. Buying interest was also visible in cement stocks such as UltraTech Cement, Ambuja Cements and ACC, while tyre makers MRF, CEAT and JK Tyre advanced on expectations of lower input costs. 

Pharma and Healthcare Underperform 

Healthcare and pharmaceutical stocks were the only pockets of weakness in an otherwise strong market. 

The Nifty Pharma and Healthcare indices ended marginally lower as investors shifted towards cyclical and economically sensitive sectors that are expected to benefit more directly from lower oil prices and improving global risk sentiment. Shares of Aurobindo Pharma declined 4.7% after the U.S. FDA flagged regulatory concerns at its subsidiary Eugia Pharma’s manufacturing facility in Telangana. 

Financials Provide Support 

Nifty Financial Services index rose lower crude inspired hopes of a softer monetary policy boosting credit growth at the lenders. Source: NSE  

Financial stocks also contributed to the rally, with private-sector lenders and non-banking finance companies witnessing healthy gains. 

Shares of Shriram Finance, HDFC Life and Bajaj Finserv were among the top performers on the Nifty. The broader financial space benefited from expectations that softer inflation and lower crude prices could improve macroeconomic conditions and support credit growth. 

The broad-based participation across sectors highlighted the market’s positive response to easing geopolitical tensions, with investors betting that lower oil prices could provide a meaningful tailwind for corporate earnings and economic growth in the months ahead. 

Source

• NSE