Benchmark equity indices ended higher for the second consecutive session on Monday, although they pared some gains in the latter half of the session amid profit booking. Investor sentiment remained upbeat after reports of an interim US-Iran peace agreement and plans to reopen the Strait of Hormuz eased concerns over energy supplies and inflation.

BSE Sensex settled 736.38 points, or 0.97 per cent, higher at 76,264.33 after touching an intraday high of 76,821.07. The Nifty 50 ended up 231 points, or 0.98 per cent, at 23,853.90 after hitting a high of 24,011.40.

The benchmarks had opened sharply higher, tracking the global market rally of Asian and European markets, with the Sensex gaining 1,293 points and the Nifty advancing 362 points at the opening bell.

Wall Street had ended higher on Friday, setting a positive tone for global equities.

Geopolitical relief boosts risk appetite

Vinod Nair, Head of Research at Geojit Investments Limited, said the interim US-Iran peace agreement significantly improved investor sentiment and triggered a broad-based recovery across equity markets.

“With crude oil prices easing, concerns around inflation have moderated, supporting a more stable interest rate outlook and improving earnings visibility for FY27. As the risk-reward equation turns more favourable for equities, investors have increasingly shifted toward growth-oriented sectors such as autos, industrials, capital goods, and real estate, which are well positioned to benefit from an improving macro environment. The easing in geopolitical risks is also expected to moderate bond yields, FII outflows and strengthen the rupee, further reinforcing the positive market outlook,” he said.

Ponmudi R, CEO of Enrich Money, said, “developments triggered a sharp repricing of geopolitical risks, eased concerns over energy supply disruptions and encouraged a broad shift back towards risk assets.”

Adding to the positive sentiment on the domestic front, analysts at Bonanza said comments from the Finance Minister indicating that the government could introduce more measures to attract foreign investment also supported market confidence.

Nandish Shah, Deputy Vice President, HDFC Securities, highlighted that the Indian rupee strengthened by 40 paise, supported by easing geopolitical tensions that led to a decline in crude oil prices and the US dollar. Additionally, sustained dollar inflows into the debt market—driven by recent government and RBI measures—along with improving global risk appetite, provided further support to the domestic currency.

Broader markets outperform

The broader market participated strongly in the rally, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending more than 1 per cent higher. However, similar to the benchmarks, both segments witnessed some profit booking during the second half of the trading session.

The India VIX declined more than 2 per cent to 14.35, reflecting easing market volatility.

On the sectoral front, Nifty Realty, Nifty Consumer Durables and Nifty Auto outperformed the broader market. In contrast, Nifty Pharma and Nifty Healthcare lagged.

Trent, Shriram Finance lead Nifty 50 gainers

Among Nifty 50 constituents, Trent, Shriram Finance, Eicher Motors, InterGlobe Aviation and Bajaj Finserv emerged as the top gainers, while NTPC, Bajaj Auto and ONGC ended as the biggest losers.

Market breadth remained positive, with advancing stocks comfortably outnumbering decliners.

Midcaps and smallcaps see stock-specific action

Within the midcap space, Kalyan Jewellers, L&T Finance, Phoenix Mills, Prestige Estates Projects and Motilal Oswal Financial Services surged 6-11 per cent. On the downside, Godfrey Phillips India, NMDC and Aurobindo Pharma declined 2-4 per cent.

Among smallcaps, Aarti Industries, Five-Star Business Finance, IFCI and CreditAccess Grameen rallied 5-13 per cent. Aster DM Healthcare, Ola Electric, Deepak Fertilisers and Gland Pharma fell 3-4 per cent.

Pranay Aggarwal, Director and CEO of Stoxkart, noted that while the current market momentum is encouraging, its sustainability will depend on macroeconomic developments, corporate earnings and global market trends. Aggarwal added that sectors such as financials, capital goods, infrastructure and select consumption-oriented businesses could remain in focus, while advising investors to maintain a disciplined long-term approach rather than react to short-term market movements.

What investors should watch

Santosh Meena, Head of Research at Swastika Investmart, said several sectors stand to benefit from lower crude oil prices and improving risk sentiment.

“Several sectors are well-positioned to benefit from the current environment. Oil-sensitive and import-dependent areas such as aviation (due to lower ATF costs), auto (from cheaper fuel and potential demand boost), logistics/transportation, and FMCG/consumer durables (margin relief and consumption pickup) stand out. Financials and banking stocks could gain from improved sentiment, liquidity, and rupee stability, while realty and infrastructure may benefit from positive risk-on mood and potential lower borrowing costs,” Meena said.

Looking ahead, Rajesh Palviya, Head of Research at Axis Direct, said investors will closely track the progress of the monsoon season, potential El Niño-related developments and the upcoming earnings season.

“A sustained revival in FII inflows could act as a key catalyst for the next leg of the market rally, especially given India’s strong macro fundamentals and earnings visibility,” Palviya said.

On Friday, the Sensex jumped 1,695.40 points or 2.30 per cent to settle at 75,527.95. The Nifty ended 461.30 points or 1.99 per cent higher at 23,622.90.

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Published on June 15, 2026