Indian equity benchmarks extended their gains for the third consecutive session on Tuesday, aided by easing geopolitical concerns in West Asia, softer crude oil prices and continued strength in the rupee.

The 30-share BSE Sensex pack climbed 544.15 points or 0.71 per cent to settle at 76,808.48, while the NSE Nifty50 index advanced 135.25 points or 0.57 per cent to close at 23,989.15. Broader indices also ended higher, with Nifty Midcap100 rising 0.41 per cent and Nifty Smallcap100 gaining 0.42 per cent.

Among the major contributors to the Sensex gains were Reliance Industries Ltd (RIL), HDFC Bank Ltd, ICICI Bank Ltd, Bharti Airtel Ltd, Bajaj Finance Ltd, HCL Technologies Ltd, Hindustan Unilever Ltd (HUL), Tata Consultancy Services Ltd (TCS) and ITC Ltd.

The rally added to investor wealth, with BSE-listed companies' market capitalisation (m-cap) increasing by around Rs 1.75 lakh crore to Rs 472.24 lakh crore from Rs 470.49 lakh crore in the previous session. Over the last three trading sessions, BSE m-cap has surged by nearly Rs 19.91 lakh crore from Rs 452.33 lakh crore recorded on June 11.

Vinod Nair, Head of Research at Geojit Investments, said, "Domestic equity markets continued their recovery momentum, buoyed by growing optimism around a de-escalation in US–Iran tensions and softening crude oil prices. The rally was broad-based, with notable gains in IT, realty, FMCG, and oil & gas sectors. Metal stocks, however, lagged behind, weighed down by a sharp pullback in global metal prices as supply-side concerns began to subside. 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."

Sunny Agrawal, Head - Fundamental Research at SBI Securities, said, "Indian equity indices extended their gains, supported by broad-based buying across large-cap stocks. Sectorally, most indices ended in positive territory, led by IT, consumer durables, energy, media, FMCG, and realty, which gained 1–2 per cent, while auto, pharma, PSU banks, and metals lagged."

Ankur Punj, MD & Business Head at Equirus Wealth, noted, "Equity markets are reacting positively to the peace deal between the US and Iran, which is set to be signed in the next few days, with investors buying stocks that were beaten down in the recent sell-off. With a sharp fall in global crude oil prices, buying action was seen in domestic oil stocks while the IT sector also witnessed an upward bias after taking a hit in recent weeks. 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."

On the currency front, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said, "Rupee traded slightly stronger with gains of around 0.15 per cent or 11 paise near 94.55, supported by continued optimism surrounding the ongoing US-Iran peace negotiations. Market sentiment improved further after positive statements from Iranian officials, while participants now await the next round of discussions scheduled for 19 June, which could prove crucial in determining the longer-term outlook for energy markets and global risk sentiment."

He added, "Going forward, the rupee will also take cues from the upcoming Federal Reserve policy decision, as expectations around the interest rate cycle will influence the dollar index and emerging market currencies. In addition, FII flows will remain a key factor, with sustained foreign inflows likely to provide further support to the domestic currency. Technically, the rupee outlook remains positive as long as geopolitical developments remain constructive. The near-term trading range is seen between 94.80 and 94, with a sustained move below 94.50 potentially opening the door for a further appreciation towards 94 level."