Equity Rally as US-Iran Peace Deal Lifts Global Risk Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Kagenmi

istock.com

By Dehuti Jani

June 15, 2026 at 12:10 PM IST

Indian equity benchmarks rose sharply on Monday, extending gains for a second straight session, after the US and Iran announced an initial agreement to end hostilities and reopen traffic through the Strait of Hormuz. The Nifty50 climbed 231 points or 0.98% to close at 23,853.90, while the BSE Sensex gained 736.38 points or 0.97% to settle at 76,264.33. The two indices have risen about 3% over the past two sessions.

Investor sentiment improved after Donald Trump said Washington and Tehran had reached a peace agreement aimed at ending the four-month-long conflict in West Asia. Pakistani Prime Minister Shehbaz Sharif said the two countries are expected to sign a memorandum of understanding in Switzerland later this week. The easing geopolitical tensions pushed Brent Crude prices lower, supporting emerging market assets. India’s 10-year government bond yield declined, while the rupee strengthened around 0.41% to 94.71 against the US dollar.

Fourteen of the 16 major sectors ended higher. Realty stocks outperformed with gains of more than 4%, while consumer durable and auto shares also advanced strongly. Pharma stocks lagged the broader market. Among Nifty50 gainers, Trent, Shriram Finance and HDFC Life Insurance led advances. Larsen & Toubro gained 3% on expectations that easing tensions in West Asia could support regional infrastructure activity.

Broader markets also remained firm, with the Nifty MidCap and Nifty SmallCap indices rising 1.29% and 1.11%, respectively.

Top Movers of the Day

Trent, Nifty’s top gainer, surged 5.31% to ₹2,901.70 as risk‑on sentiment, strong QSR/retail positioning and continued institutional buying drove fresh highs in consumer discretionary.

Shriram Finance jumped 4.61% to ₹998.95, extending its recent rally as financials remained in demand on lower crude, firmer rupee and expectations of improved credit growth.

HDFC Life rallied 4.72% to ₹581.55, boosted by falling bond yields, risk‑on positioning in financials and hopes of better persistency/ULIP traction in a stronger equity market.

Eicher Motors gained 4.47% to ₹7,639.00, riding the auto up‑move as the Nifty Auto index rose over 3% on crude‑led margin relief and strong demand expectations for premium bikes and CVs.

Maruti Suzuki climbed 3.29% to ₹13,806.00 after the government approved legal recognition for 100% ethanol blend E100 fuel, raising optimism around flex‑fuel vehicles and future volume growth.

Prestige Estates, outperformed with Nifty Realty and rallying 5.77% to 1,467.30, as lower oil, improving macro sentiment and falling yields revived interest in rate‑sensitive property stocks.

Aarti Industries soared 11.60% to ₹491.70, topping BSE Midcap gainers as strong buying in specialty chemicals and volume “shockers” positioning triggered a sharp re‑rating move.

IFCI extended its two‑session surge to 5.24%, trading near ₹89, on optimism that NSE may soon file IPO papers with SEBI, which could unlock value for the financial institution.

Aurobindo Pharma dropped 4.71% to a six‑week low near ₹1,403.50 after the USFDA classified its Eugia Unit‑III facility as “Official Action Indicated” post 11 observations, spooking investors on regulatory risk.

NTPC slipped 1.4% to ₹348.10 despite the market rally, as investors booked profits in the defensive PSU utility while rotating into high‑beta financials, autos and real estate.

ONGC edged lower by 1.12% to ₹243.45 even as equities surged, with tumbling crude prices and brokerage commentary (rating cut to ‘reduce’ with TP ₹230) weighing on upstream earnings sentiment.

Hindalco Industries eased 0.80% to ₹1,013.40, lagging the strong index advance after a big prior run‑up, as metals traded mixed despite positive global risk sentiment and a softer dollar.

Futures & Options
Nifty June 2026 futures closed at 23,930, a premium of 76.1 points over the spot Nifty 50 close of 23,853.90, reflecting continued bullish sentiment amid easing geopolitical tensions and strong gains in equities. In the cash market, the Nifty 50 surged 231 points or 0.98%, while India VIX declined 2.48% to 14.35, indicating lower near-term volatility expectations.

Among stock futures, HDFC Bank, Reliance Industries and Larsen & Toubro were the most actively traded contracts in the NSE F&O segment. The June 2026 derivatives series will expire on Tuesday, 30 June 2026.

Bonds
India’s government bond benchmark yields fell on Monday as softer crude oil prices continued to support sentiment, although gains moderated after wholesale inflation data came in higher than expected. The benchmark 6.94% GS 2036 yield ended at 6.8704%, after declining sharply earlier in the session from Friday’s close of 6.8957%.

Market participants said the rally was initially driven by falling Brent Crude prices amid expectations of a potential US-Iran peace agreement. Brent crude traded near $83 per barrel after dropping from around $86 at Friday’s close.

Short covering that drove the early bond rally eased at lower yields, though a sustained break below 6.85% on the 2036 benchmark could spur fresh buying.

Forex
Indian rupee strengthened for a second consecutive session on Monday as sharply lower oil prices and improving global risk sentiment supported the domestic currency following the preliminary US-Iran peace agreement. The rupee closed at 94.71 against the US dollar, up 0.4% from the previous close of 95.11. During the session, the currency touched an intra-day high of 94.4625, its strongest level in five weeks.

The rally came after the US and Iran announced an initial agreement to end hostilities and reopen the Strait of Hormuz, easing concerns over energy supply disruptions and pushing Brent Crude prices sharply lower. Market participants said the rupee also continued to draw support from the Reserve Bank of India’s June 5 measures aimed at attracting foreign inflows and strengthening external sector financing.

Crypto
Crypto markets stabilised on Monday as improving global risk sentiment supported a mild recovery in major digital assets following recent sharp declines. Bitcoin traded in the $63,000-$65,000 range after rebounding from recent lows. The cryptocurrency had traded near $63,359 on June 12 with a modest daily gain, though it still remains down more than 22% monthly, making June one of the weakest months for Bitcoin this year.

Ethereum traded near $1,670 after recovering from levels close to $1,600 earlier in the week as bargain buying emerged at lower levels. Traders said Ethereum’s movement continued to influence broader sentiment across the digital asset market.

US Stock Futures
US stock futures surged on Monday as investors welcomed a breakthrough agreement between the US and Iran aimed at ending hostilities and reopening the Strait of Hormuz, boosting global risk appetite at the start of a holiday-shortened week. Futures linked to the Nasdaq-100 led gains, soaring 2.1%, while S&P 500 futures advanced 1.3%. Futures tied to the Dow Jones Industrial Average climbed 1%.

Investor sentiment improved sharply after reports that the US-Iran agreement would restore shipping activity through the Strait of Hormuz, easing concerns over global energy supply disruptions and inflation risks. The rally also extended Friday’s strong gains on Wall Street.

US Treasury Notes
US Treasury yields fell sharply on Monday premarket trading after reports of an interim peace agreement between the US and Iran eased concerns over energy-driven inflation and reduced expectations of further aggressive Federal Reserve tightening. The benchmark 10-year Treasury yield dropped more than 4 basis points to around 4.43%, touching a one-month low during early trade. The yield traded in a narrow range between 4.420% and 4.445%, according to market data.

Bond markets rallied after hopes of a reopening of the Strait of Hormuz triggered a sharp decline in Brent Crude prices, which fell more than 4%. Lower oil prices helped calm inflation concerns and supported expectations that the Federal Reserve may face less pressure to maintain restrictive monetary policy settings.

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