Benchmarks Extend Rally for Third Session on US-Iran Peace Optimism

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

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By Dehuti Jani

June 16, 2026 at 12:10 PM IST

Indian equity benchmarks closed higher on Tuesday, extending gains for a third consecutive session, as easing geopolitical tensions and lower oil prices continued to support investor sentiment. The Nifty50 rose 135.25 points or 0.57% to close at 23,989.15, while the BSE Sensex gained 544.15 points or 0.71% to settle at 76,808.48. The benchmark indices have advanced about 3.6% and 4%, respectively, over the last three sessions.

Meanwhile, Indian government bond yields remained largely steady in thin trade, while the rupee strengthened for a third straight session amid improving external sentiment and expectations of lower energy-related pressures.

Market sentiment remained positive after the US and Iran announced a preliminary peace agreement, which helped cool Brent Crude prices and improved global risk appetite. Investors also tracked expectations around the US Federal Reserve’s policy outlook.

Foreign institutional sentiment showed signs of improvement, with foreign portfolio investors turning net buyers on Monday after 13 consecutive sessions of selling. FPIs bought Indian equities worth $107.12 million, as per NSDL

Eleven of the 16 major sectors ended higher. Realty, media and consumer durable stocks outperformed, while metal shares declined the most. Among Nifty50 gainers, HCL Technologies, Tata Consumer Products and Bajaj Finserv led advances. Broader markets also remained firm, with the Nifty MidCap and Nifty SmallCap indices gaining around 0.4% each.

Top Movers of the Day

Sonata Software hit the 20% upper circuit at about ₹312.40 as IT outperformed and the stock topped gainers’ lists with heavy volumes amid broad interest in mid‑cap tech.

Kalpataru Projects International jumped around 5–6% to ₹1,370, a 12‑week high, on sharp volume spike and continued optimism after strong order inflows and upbeat long‑term guidance.

Embassy Developments climbed about 7.73% to ₹66.21, extending its move as realty and infra names rallied on risk‑on sentiment and improving outlook for commercial property.

MMTC gained ₹1,645 up 1.79% featuring among top gainers as PSU trading and metals‑linked plays rallied in tandem with risk appetite despite sectoral weakness in broader metals.

Dr Lal Path Labs rose ₹79.95 up 12.05%, hitting a 52‑week high on strong volumes, as diagnostics names attracted buying on defensive positioning and growth expectations.

Lloyds Engineering Works rallied ₹79.95 up 12.05%, taking its gain to over 20% in three sessions and more than 100% from March lows, driven by sustained re‑rating and heavy delivery volumes.

NIIT jumped around ₹105.90 up 18.63%, extending a multi‑day rebound with volumes nearly 3x the five‑day average, as traders bet on a turnaround from 52‑week lows in the skilling/ed‑tech space.

Concord Enviro Systems surged ₹301.75 up 12.05% in its third straight gaining session, as bargain hunting and short‑covering continued after a deep correction from its 52‑week high.

Nurture Well Industries ₹28.44 at 20% for the third straight day, with large pending buy orders and volumes up almost 3x the five‑day average, signalling aggressive momentum buying.

General Insurance Corporation fell ₹356.40 to 7.97% as the government’s up‑to‑5% OFS worth around ₹3,088 crore at a 9% discount triggered supply‑led selling pressure.

NALCO declined 366.80 at 4.07%, extending its recent weakness as metals underperformed despite strong indices, with investors rotating out of aluminium names amid softer prices.

Hindalco Industries dropped about 2.95% to around ₹984, emerging as one of the biggest Nifty drags as the Nifty Metal index stayed weak on lower base‑metal prices and profit‑taking after a sharp prior rally.

Futures & Options
Nifty June 2026 futures closed at 24,007, a premium of 17.85 points over the spot Nifty 50 close of 23,989.15, indicating continued positive sentiment in the derivatives market. In the cash market, the Nifty50 gained 135.25 points or 0.57%, while India VIX declined sharply by 6.89% to 13.36, reflecting easing market volatility expectations.

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

Bonds
India’s government bond benchmark yields remained largely steady on Tuesday amid thin trading volumes and the absence of fresh market triggers. The benchmark 6.94% GS 2036 yield ended at 6.8651%, compared with 6.8704% in the previous session. Traders said easing crude oil prices and improving geopolitical sentiment continued to support the bond market.

Market participants noted that nearly 60-70% of the oil risk premium built into government bond yields over recent weeks has now unwound, with Brent Crude prices stabilising near $83 per barrel. Dealers added that if the US-Iran agreement holds and oil prices remain contained, the benchmark 2036 yield could gradually move toward 6.80% in the coming weeks.

Meanwhile, state governments raised 204.61 billion rupees through the weekly auction of state development loans, lower than the notified amount of 216 billion rupees, after some states partially accepted bids while Gujarat rejected bids entirely for its 12-year paper.

Forex
Indian rupee strengthened for a third consecutive session on Tuesday as easing geopolitical tensions and improving risk sentiment continued to support the domestic currency. The rupee closed 0.2% higher at 94.56 against the US dollar after opening at 94.6125 and trading in a narrow range through the session. The currency touched an intra-day high of 94.4950 before paring some gains amid importer hedging demand.

The rupee’s underlying bias has improved after the preliminary US-Iran peace agreement eased concerns over global energy supply disruptions and helped stabilise Brent Crude prices.

Crypto
Crypto markets remained firm on Tuesday as easing geopolitical tensions and improving global risk sentiment supported a continued recovery in digital assets. Bitcoin traded near $65,940, holding above the key $65,000 level for a second straight session after rebounding sharply from lows near $59,100 seen during peak geopolitical tensions earlier this month.

Ethereum showed relatively stronger momentum, trading near $1,760 as risk appetite improved across the broader crypto market. Investor sentiment improved as markets increasingly priced in progress toward a formal US-Iran peace agreement expected to be signed later this week in Switzerland, reducing concerns over energy markets and broader macroeconomic risks.

US Stock Futures
US stock futures were largely steady on Tuesday after the Dow Jones Industrial Average closed at a fresh record high in the previous session amid optimism surrounding a potential US-Iran peace agreement. Futures linked to the S&P 500 traded marginally higher, while Nasdaq-100 futures gained 0.2%. Futures tied to the Dow Jones Industrial Average edged up 0.1%.

Investor sentiment remained supported by expectations that a US-Iran agreement could ease geopolitical tensions and stabilise energy markets. Meanwhile, SpaceX shares surged another 8% in premarket trading, extending strong gains after its recent IPO. The stock traded around $208 before the opening bell, roughly 54% above its IPO price of $135.

US Treasury Notes
US Treasury yields were largely steady on Tuesday as easing geopolitical tensions helped calm inflation concerns, while investors remained cautious ahead of the Federal Reserve’s upcoming policy meeting. The benchmark 10-year Treasury yield hovered near 4.44%, while the policy-sensitive 2-year Treasury yield stabilised just below 4.054%.

Bond market volatility eased after the US-Iran peace agreement reduced fears of energy supply disruptions through the Strait of Hormuz and pushed oil prices lower. However, further declines in yields were limited as traders shifted focus toward the Federal Reserve’s policy decision and comments from new Fed Chair Kevin Warsh on the outlook for interest rates and inflation.

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