Equity benchmarks extended their winning streak to a third consecutive session on Tuesday, supported by improving global risk sentiment after a preliminary US-Iran peace deal eased concerns over energy supply disruptions and pushed crude oil prices lower.
Vinod Nair, Head of Research at Geojit Investments, said domestic markets continued their recovery momentum amid growing optimism around a de-escalation in US-Iran tensions and softening crude oil prices.
Markets are now expecting a gradual reduction in geopolitical risks and smoother movement of global oil supplies through the Strait of Hormuz, a Bonanza analyst said.
BSE Sensex settled 544.15 points or 0.71 per cent higher at 76,808.48, while the NSE Nifty 50 advanced 135.25 points or 0.57 per cent to close at 23,989.15, touching an intraday high of 24,002.60.
The gains followed Monday’s strong rally, when the Sensex had surged 736.38 points and the Nifty 50 climbed 231 points.
Ponmudi R, CEO of Enrich Money, said the preliminary US-Iran peace agreement significantly reduced concerns over geopolitical instability and energy supply disruptions, helping improve global risk appetite and supporting equities.
“Investor sentiment remains measured ahead of the upcoming US Fed policy meeting, the first under the newly appointed Chair. While the benchmark interest rate is widely anticipated to hold steady, market participants will pay close attention to the forward guidance and commentary on the trajectory of monetary policy,” Nair said.
IT stocks lead gains; metals emerge as biggest drag
Broader markets also participated, with both the midcap and smallcap indices gaining modestly around 0.4 per cent each. Investor confidence improved further as the volatility index declined nearly 7 per cent to slip below the 14 mark.
Sectoral performance remained mixed. Realty and IT emerged as the top performers. Media, FMCG and oil & gas indices also ended higher, while banking and financial stocks provided moderate support to benchmark indices.
Metal stocks, however, witnessed sharp selling pressure and ended as the worst-performing sector. Market participants attributed the weakness to a pullback in global metal prices. Auto, pharma, healthcare, PSU bank and cement stocks also closed marginally lower.
HCL Tech, TCP lead gainers; Hindalco, JSW Steel top losers
Among Nifty 50 constituents, HCL Tech, Tata Consumer Products, NTPC, Bajaj Finserv and Hindustan Unilever led the gainers. Hindalco Industries, JSW Steel, Eicher Motors, Maruti Suzuki and InterGlobe Aviation were among the top losers.
Market breadth remained firmly positive. Of the 3,416 stocks traded on the National Stock Exchange, 1,956 advanced, 1,356 declined and 104 remained unchanged, indicating broader participation in the market rally. As many as 83 stocks touched their 52-week highs, while 28 hit fresh 52-week lows. Additionally, 124 stocks were locked in the upper circuit, compared with 64 that hit their lower circuit limits.
Midcaps, smallcaps see stock-specific action
Within the midcap space, Coforge, Suzlon Energy, SBI Cards, Prestige Estates Projects and ICICI Lombard General Insurance gained 3-4 per cent. On the downside, National Aluminium Company (NALCO), Groww, Vishal Mega Mart, Vodafone Idea and Exide Industries declined 2-4 per cent.
Among smallcaps, PG Electroplast, Aditya Birla Real Estate, Netweb Technologies, Brigade Enterprises and Chambal Fertilisers rallied 3-7 per cent, while Ramco Cements, Ather Energy, Ola Electric and Pine Labs fell up to 3 per cent.
On the BSE, Sonata Software was the standout performer, soaring 20 per cent. Lloyds Engineering Works and Embassy Developments advanced 8-12 per cent. GIC Re, Rain Industries and PTC Industries featured among the major laggards.
Brokerage firm Monarch Networth Capital maintained a constructive outlook on Indian equities, projecting the Nifty 50 to rise to 27,000-28,000 during CY2026, supported by earnings recovery, India’s structural growth story and a favourable monetary policy environment.
Global cues remained supportive throughout the session. Wall Street had rallied overnight, with the Nasdaq, S&P 500 and Dow Jones gaining 3.1 per cent, 1.7 per cent and 0.9 per cent, respectively, after investors welcomed the US-Iran agreement.
Asian markets largely ended positive, with Japan’s Nikkei 225 briefly crossing the 70,000 mark for the first time before paring gains following the Bank of Japan’s decision to raise its key interest rate to 1 per cent.
European indices were also trading in positive territory.
FIIs also turned net buyers on Monday for the first time this month, as falling crude oil prices and the rupee’s recovery provided support, Ankur Punj, MD & Business Head at Equirus Wealth, emphasised.
Rupee also appreciated for the third straight day. Separately, Jateen Trivedi, Vice President Research Analyst – Commodity and Currency at LKP Securities, said the rupee’s near-term trajectory will depend on the outcome of the US Federal Reserve’s policy decision and foreign institutional investor flows. He added that the technical outlook for the domestic currency remains positive as long as geopolitical developments continue to remain constructive.
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Published on June 16, 2026
