Indian equities extended their winning streak into a third session on Tuesday, with both benchmark indices closing firmly in the green as a preliminary US-Iran peace deal took heat off crude prices and revived foreign investor appetite.
Dalal Street Ends Higher on Global Optimism
The NSE Nifty 50 closed at 24,085.70, up 96.55 points or 0.40%, after swinging between 23,969.70 and 24,108.20 intraday. The BSE Sensex mirrored the move, settling at 77,155.62, a gain of 347.14 points or 0.45%.
The rally was broad-based. Eleven of 16 major sectors advanced, with IT, FMCG, and realty leading gains. Heavyweights HDFC Bank and Reliance Industries rose 1% and 1.7% respectively, providing heft to the indices. Mid and smallcaps also participated, both up 0.4%.
Market breadth was healthy, with 28 of 38 BSE sectors advancing. The BSE Consumer Goods index was the top gainer, up 1.68%, on hopes of resilient demand.
Oil Relief, FPI Reversal Fuel Sentiment
The trigger was a cooling in crude prices after the US and Iran signaled a preliminary deal to halt hostilities and reopen the Strait of Hormuz. Brent slipped below $81.50 a barrel, a welcome break for India, the world’s third-largest oil importer.
Lower oil is a double win: it eases inflation pressure, supports the rupee, and reduces the import bill. The rupee gained for a third straight day, closing at 94.56 per dollar.
Foreign portfolio investors, who have sold a record $30.8 billion of Indian equities in 2026, turned net buyers on Monday with inflows of $21.2 million after 13 days of selling. Coordinated RBI and government measures to support the rupee and attract bond inflows are also seen as positives.
“Moderation in oil prices to about $82 a barrel, alongside India’s stable macro fundamentals, steady interest rates and controlled inflation, augurs well for domestic markets,” said Vinit Bolinjkar, head of research at Ventura Securities.
Corporate Moves in Focus
Stock-specific action added to the cheer. Devyani International, KFC India’s operator, jumped 2.5% and Sapphire Foods gained 5% after both received NSE and BSE no-objection letters for their proposed merger.
In the tech space, HCLTech rose after acquiring a 10.46% stake in AI startup Sarvam AI for ₹1,427 crore. Adani Enterprises and US-based Jabil announced plans to set up an AI and data centre infrastructure manufacturing platform in India.
On the flip side, aluminium makers Hindalco and National Aluminium fell 3.1% and 4.1% on weaker global aluminium prices.
Geopolitics: Modi at G7, Telegram Blocked Ahead of NEET
On the geopolitical front, Prime Minister Narendra Modi held bilateral talks with UK PM Keir Starmer and Canadian PM Mark Carney on the sidelines of the G7 Summit in Evian, France. Modi told G7 leaders that “trust was in short supply globally,” underscoring India’s push for reform of multilateral institutions.
At home, the government temporarily restricted access to Telegram until 22 June ahead of the NEET-UG 2026 re-examination, citing concerns over cheating rackets and misinformation. The Indian Air Force has also been deployed to airlift question papers for enhanced security.
Meanwhile, Bangladesh summoned an Indian diplomat to protest the detention and questioning of an adviser to PM Tarique Rahman at Delhi airport, adding a note of friction to regional ties.
Outlook: Fed Decision, Oil in Focus
Analysts say the market’s next leg depends on crude prices, rupee movement, and the US Federal Reserve’s policy decision due after Indian markets close on Wednesday.
Technically, Nifty faces resistance near 24,100, with support at 23,800. As long as oil stays subdued and FPI flows hold, the recovery from June lows could gather pace.
What to watch: Fed guidance, US-Iran deal details, and the impact of El Nino on Kharif sowing, with IMD forecasting 90% of long-period average rainfall.
