Sensex Soars Nearly 1,700 Points, Nifty Tops 23,600 as US-Iran Peace Hopes Trigger Broad-Based Rally

Mumbai, June 12: Indian benchmark indices posted their strongest gains in two months on Friday, with the Nifty exceeding the 23,600 mark and the Sensex surging nearly 1,700 points, as easing geopolitical tensions in the Middle East sparked a global risk-on rally and drove crude oil prices sharply lower. 

The BSE Sensex jumped 1,695.40 points, or 2.30%, to close at 75,527.95, while the NSE Nifty 50 climbed 461.30 points, or 1.99%, to end at 23,622.90. Market breadth remained overwhelmingly positive, with 3,110 stocks advancing against 969 declines on the NSE. 

Investor sentiment received a significant boost after U.S. President Donald Trump called off planned military strikes on Iran, citing progress in diplomatic talks. The development fuelled hopes of a potential peace agreement, easing concerns over disruptions to global oil supplies and triggering a sharp fall in crude prices. 

Oil-Sensitive Stocks Jump 

Sensex took off on Trump saying he wouldn’t attack Iran any further as investors cheered prospects of peace arriving in Middle East. Source: BSE 

The decline in crude oil prices sparked strong buying interest in sectors that benefit from lower energy costs. InterGlobe Aviation, the parent of IndiGo, emerged among the top Nifty gainers as investors factored in the prospect of lower aviation turbine fuel expenses. 

Oil marketing companies, tyre manufacturers, paints and chemical stocks also witnessed strong gains amid expectations that softer crude prices would improve margins and reduce input cost pressures. 

Infrastructure major Larsen & Toubro climbed sharply after improving Middle East sentiment lifted the outlook for companies with significant business exposure to the Gulf region. The engineering giant derives a sizeable portion of its international order inflows from countries such as Saudi Arabia, the UAE and Qatar. 

Financials, Consumer Stocks Join Rally 

Nifty 50 had a blast as all sectors rallied except IT which seemed held back by fears surrounding cataclysmic change facing the sector due to AI. Source: NSE  

Financial stocks provided substantial support to the benchmarks, with Bajaj Finance and Shriram Finance featuring among the top performers. Investors cheered the prospect of easing inflationary pressures from lower crude prices, which could improve the broader macroeconomic environment and support credit growth. 

Titan Company also rallied strongly as investors returned to consumer-facing stocks amid improving risk appetite. 

On the flip side, defensive counters underperformed. Nestle India, Tech Mahindra, Tata Consumer Products, SBI Life Insurance and ONGC ended among the notable laggards. ONGC came under pressure as lower oil prices weighed on sentiment towards upstream energy producers. 

All Sectoral Indices End in Green Except

The rally was broad-based, with every major sectoral index closing in positive territory except IT which dipped 0.09%. 

Consumer durables, realty, telecom, banking, auto, media, oil & gas and metal indices gained between 1% and 2%, reflecting widespread participation across cyclical and domestic-focused sectors. Realty and consumer discretionary names attracted significant buying as investors rotated back into growth-oriented segments. 

Broader Markets Outperform 

Broader markets outpaced the headline indices, underscoring the strength of the risk-on move. The Nifty Midcap 100 and Nifty Smallcap 100 indices both advanced more than 2%, with investors aggressively accumulating mid- and small-cap stocks after recent bouts of volatility. 

With crude oil prices falling below key levels and global equities rallying, market participants said sentiment had improved considerably. However, investors will continue to monitor developments surrounding U.S.-Iran negotiations, as any setback in diplomatic efforts could quickly revive volatility in oil and equity markets. 

Source

• NSE
• BSE