Indian equities closed with modest gains on Monday, brushing aside a sharp selloff in IT stocks as easing geopolitical tensions in the Middle East and a dip in crude prices lifted broader sentiment. The Nifty 50 ended at 24,102.90, up 89.80 points or 0.37%, while the BSE Sensex settled at 77,094.07, gaining 291.17 points or 0.38%.
The session was volatile. Both indices opened with a gap-up, tracking positive cues from Asia after reports that the first round of US-Iran talks in Switzerland ended with progress on a 60-day roadmap for a final deal. The Nifty hit an intraday high of 24,168.05 and the Sensex touched 77,325.56 before profit booking and IT weakness pulled indices off the day’s peak.
IT Drag, Pharma and Energy Support
IT remained the main drag for the second session running. The Nifty IT index fell over 3.8% in early trade after Accenture cut its FY26 revenue growth outlook, flagging caution in client spending. Despite accounting for only 8.5% of the Nifty 50’s weight, the sharp drop in heavyweights like TCS, Infosys and Wipro shaved more than 120 points off the benchmark in the first hour.
The broader market, however, showed resilience. Pharma, energy, metals and media advanced, helping offset the IT losses. Dr Reddy’s Laboratories rallied after Nomura raised its target price by 9% to Rs 1,740, citing margin expansion from its branded business and a better product mix.
Small and midcaps outperformed. The Nifty Midcap index rose 2.9% last week and continued to see buying interest, with Aegis Logistics and IDBI Bank up 6.8% and 6.6% from their intraday lows. The advances/declines ratio on the NSE stood at 33:17, indicating healthy breadth.
FII Inflows and Oil Relief Boost Confidence
Foreign Institutional Investors returned as net buyers last week, infusing Rs 3,386 crore into Indian equities after a prolonged phase of selling. The strongest inflow came on Friday, with Rs 4,859 crore pouring in due to passive fund adjustments linked to FTSE quarterly rebalancing. Domestic Institutional Investors also stayed supportive, investing Rs 7,108 crore during the week.
Crude oil offered relief. Brent crude slipped 1.3% to trade below $80 a barrel after reports that US-Iran negotiators made headway in Switzerland. The pullback came even as President Donald Trump issued fresh threats of military action if Hezbollah resumes attacks on Israel, keeping traders cautious.
India used the opportunity to diversify sourcing. Crude imports from Russia surged to 2.66 million barrels per day in June so far, up from 1.91 million bpd in May, while supplies from the UAE held near record levels. Analysts say Russian barrels remain attractive due to discounts, and US sanctions waivers have eased logistics and insurance bottlenecks. The lower oil price is positive for India’s current account and inflation outlook, giving the RBI more room to stay accommodative.
Business Headlines: Trade, IPOs and Corporate Wins
India-US trade deal in final stretch: An interim trade deal between India and the US is down to “final touches”, according to government sources. USTR Jamieson Greer is set to meet Commerce Minister Piyush Goyal on 23-24 June to close remaining gaps. Officials say the deal’s implementation hinges on the US finalizing its tariff structure, but both sides are keen to announce progress this week.
FY26 trade push delivers results: Fiscal year 2025-26 saw a major expansion of India’s trade outreach, with FTAs and economic partnership pacts concluded with the UK, Oman, New Zealand and a framework finalized with the EU. The India-UK Comprehensive Economic and Trade Agreement was signed on 24 July 2025, while the India-Oman CEPA was concluded on 18 December 2025. Negotiations with New Zealand wrapped up on 22 December 2025 and the pact was signed on 27 April 2026.
IPO pipeline heats up: The National Stock Exchange has filed preliminary papers with SEBI for a Rs 30,000-crore IPO, marking a significant step toward its long-awaited listing. The issue is expected to be one of the largest in Indian capital market history.
Corporate activity:
– Tata Motors secured orders for over 3,400 electric commercial vehicles, signaling strong demand in the EV segment.
– Smartphone exports to the US, led by Apple, surged 47% in the first month of FY27, highlighting India’s growing role in global electronics supply chains.
– India remains the Asian Development Bank’s largest private sector market, with plans for ₹1 billion in direct support to expand infrastructure and climate projects.
Geopolitical Watch: US-Iran, BRICS and UK Politics
US-Iran talks continue: Negotiators from the US and Iran worked through the night in Switzerland on Sunday and Monday. The US team, led by Vice President JD Vance, includes Jared Kushner and Steve Witkoff. Iran’s delegation is led by Parliament Speaker Mohammad Bagher Qalibaf and Foreign Minister Abbas Araghchi, with Pakistan and Qatar acting as mediators. While progress on a 60-day roadmap has calmed markets, Trump’s threats of fresh strikes if Iran violates the interim deal kept risk premiums elevated.
BRICS security conclave: National Security Advisor Ajit Doval will host the BRICS security conclave this week amid evolving geopolitical challenges. The meeting is expected to focus on counterterrorism, cybersecurity and regional stability.
UK political shift: UK Prime Minister Keir Starmer announced he will step down as Labour Party leader, remaining as caretaker PM until a successor is chosen. The move comes amid internal party pressure and could reshape UK’s trade and foreign policy stance toward India.
Technical Outlook and What to Watch
Technically, the Nifty’s outlook remains positive as long as it holds above 24,050. Intraday support lies in the 24,060-24,050 zone. A decisive break above 24,200 could open the path to 24,400 in the coming sessions. Morgan Stanley maintains a base-case target of 89,000 for the Sensex by June 2026, citing fiscal discipline, private investment recovery and a stable macro environment.
Macro data continues to support the case for equities. India’s GDP grew 7.8% YoY in Q4 FY26, taking full-year growth to 7.7%. The services PMI stayed above 55 for the third month, and GST collections remained robust.
However, risks remain. A prolonged disruption in the Strait of Hormuz, crude above $100, and a weak monsoon due to El Niño could weigh on FY27 growth. Analysts also flag the impact of US tariff policy and potential retaliation from China as key overhangs.
Market pulse for Tuesday: Traders will watch for updates from the India-US trade talks, Hormuz shipping activity, and FII flow trends. GIFT Nifty was trading 0.52% higher at 24,173 in early Asian trade, hinting at a positive start.
For now, markets are pricing in diplomacy over disruption. If the US-Iran roadmap holds and crude stays below $85, Indian equities could extend their rally toward new highs.
