Closing Bell: Why Sensex Rallied 1,700 points and Nifty Closed above 23,600 Level Today?

Market Update at 04:06 PM: Indian equity benchmarks ended with their strongest single-day gains in nearly two months on Friday, June 12, as falling crude oil prices, easing tensions between the U.S. and Iran, and strong buying in heavyweight stocks boosted investor sentiment.

The Nifty 50 opened with a gap-up of more than 250 points but trimmed some early gains to touch an Intraday low of 23,313.90. Buying momentum strengthened during the afternoon session, triggering a sharp rally across sectors. The Sensex climbed more than 1,700 points during the day, while the Nifty 50 comfortably crossed the 23,600 mark, registering its best performance since April 8, 2026.

At closing, the Nifty 50 settled at 23,622.90, gaining 461.30 points, or 1.99 per cent. The Sensex advanced 1,695.96 points, or 2.30 per cent, to end at 73,527.96. The Bank Nifty rallied 2.97 per cent, recording its biggest gain in the last two months, while India VIX, the market's fear gauge, declined 5.73 per cent.

Market sentiment improved after reports suggested progress towards a potential agreement between the U.S. and Iran. According to CNBC-TV18, the proposed understanding could lead to the reopening of the Strait of Hormuz and easing of sanctions on Iranian oil exports, supporting global energy supplies. Adding to the optimism, U.S. President Donald Trump said a breakthrough had been reached with Iran and that the country had agreed not to pursue nuclear weapons.

A key trigger for the rally was the decline in crude oil prices. Brent crude slipped to around USD 85 per barrel, easing inflation concerns and improving India's macroeconomic outlook. The softer oil prices also lifted sentiment in sectors that benefit from lower input costs.

Heavyweight stocks played a major role in supporting the benchmark indices. Strong buying was seen in HDFC Bank, Bajaj Finance, Larsen & Toubro, Titan and Eternal. Broader market participation further strengthened the rally, with the Nifty Midcap 100 index gaining 2.43 per cent and the Nifty Smallcap 100 index rising 2.80 per cent.

On the sectoral front, 10 of the 11 major sectoral indices ended in positive territory. The Nifty Realty index emerged as the top-performing sector, closing 1.78 per cent higher and snapping its two-day losing streak.

The Nifty IT index was the only sectoral loser, slipping 0.09 per cent and extending its losing streak to eight consecutive sessions. The continued weakness reflects concerns over artificial intelligence-driven disruption, weakness in global technology stocks and geopolitical uncertainties. The index is now down 24 per cent from its February 2026 peak.

Among individual stocks, oil marketing companies benefited significantly from the fall in crude prices. BPCL, HPCL and Indian Oil gained between 5 per cent and 7 per cent, while InterGlobe Aviation (IndiGo) rose 4.60 per cent. Paint, tyre and cement companies also advanced as lower crude prices improve their cost structures.

Infrastructure major Larsen & Toubro gained 2.8 per cent amid expectations that easing Middle East tensions could benefit its regional business exposure. Banking stocks also witnessed strong buying, with heavyweight lenders and the Nifty Financial Services index rising nearly 3 per cent each. Investor sentiment improved after the Reserve Bank of India detailed a concessional forex swap facility for banks' overseas foreign-currency borrowings.

Among the top contributors to the Nifty 50's gains, HDFC Bank added 92.92 points, followed by Larsen & Toubro with 47.75 points and Reliance Industries with 44.18 points. On the downside, Nestle India was the biggest drag on the index, reducing it by 7.31 points, followed by Oil and Natural Gas Corporation (ONGC) at 5.40 points and Tech Mahindra at 4.98 points.

Market breadth remained firmly positive. Of the 3,390 stocks traded on the NSE, 2,740 advanced, 564 declined and 86 remained unchanged. A total of 67 stocks touched their 52-week highs, while 44 stocks hit their 52-week lows. Additionally, 133 stocks were locked in their Upper Circuits, compared with 57 stocks that hit their Lower Circuits.

Market Update at 2:28 PM: Indian benchmark indices witnessed a strong rally on Friday, June 12, 2026, as easing geopolitical tensions improved investor sentiment and triggered broad-based buying across sectors.

The BSE Sensex surged 1,268 points, or 1.71 per cent, to touch an intra-day high of 75,100. The Nifty 50 also advanced 350.4 points, or 1.5 per cent, to reach 23,512 during the session.

Among Sensex constituents, Larsen and Toubro (L&T), IndiGo, Bajaj Finance, and HDFC Bank emerged as the Top Gainers, supporting the benchmark indices' upward momentum. On the other hand, Tech Mahindra and Power Grid Corporation were the only stocks trading in negative territory at around 02:05 PM.

The rally extended beyond the frontline indices, with broader markets also posting solid gains. The Nifty MidCap 100 index rose 1.52 per cent, while the Nifty SmallCap 100 index climbed 1.7 per cent, reflecting strong participation from mid- and Small-Cap stocks.

Sectoral performance remained firmly positive, with all major indices trading in the green. The Nifty Realty index led the gains, advancing more than 2 per cent, as investors increased exposure to Real Estate stocks amid the positive market sentiment.

Market Update at 12:19 PM: Indian equity benchmarks surged on positive global cues amid rising hopes for peace in West Asia.

US President Donald Trump stated that Washington has reached a major settlement with Iran, with only the finalisation of the agreement pending. He added that the deal is expected to be signed within the next few days, paving the way for the reopening of the Strait of Hormuz.

As of 12:00 PM, the Nifty50 climbed 210.40 points, or 0.91%, to 23,372.00, while the Sensex advanced 825.19 points, or 1.12%, to 74,657.74.

Among the Nifty50 constituents, InterGlobe Aviation, Eternal, and Shriram Finance emerged as the top gainers.

The broader market also witnessed strong buying interest, with the Nifty MidCap index rising 1.25% and the Nifty SmallCap index gaining 1.74%.

On the sectoral front, Nifty Realty, Nifty Auto, and Nifty Media led the gains, whereas Nifty IT, Nifty Healthcare, and Nifty Pharma lagged the broader market.

Market Update at 09:30 AM: The benchmark indices, the Nifty50 and Sensex, rallied sharply in early trade on the back of positive global cues and growing optimism over peace in West Asia.

Investor sentiment improved after US President Donald Trump stated that Washington had reached a major settlement with Iran, with only the final documentation pending. He added that the agreement is expected to be signed in the coming days and that the Strait of Hormuz will reopen.

As of 9:18 AM, the Nifty50 was trading at 23,437.45, up 275.85 points or 1.19%, while the Sensex gained 967.34 points or 1.31% to reach 74,799.89.

The broader market also witnessed strong buying interest, with the Nifty MidCap and Nifty SmallCap indices advancing 1.38% and 1.61%, respectively.

Pre-Market Update at 7:42 AM: Indian benchmark indices Sensex and Nifty 50 are likely to open on a positive note on Friday, supported by strong global cues after reports suggested a possible easing of tensions between the U.S. and Iran. Investor sentiment improved after U.S. President Donald Trump reportedly called off planned military strikes against Iran, boosting risk appetite across global markets.

As of 7:27 AM, GIFT Nifty was trading near the 23,502 mark, around 100 points above the previous close of Nifty futures, indicating a firm start for domestic equities. Asian markets rallied sharply, while Wall Street recorded its strongest single-day gains since April 8.

Geopolitical developments remain in focus after President Trump announced that planned military action against Iran had been suspended following progress in high-level discussions. However, tensions in the Gulf region remain elevated after another tanker, MV Jalveer, was attacked near Oman, marking the third such incident in four days. India also lodged a strong protest with the U.S. after a recent strike on a tanker in the Gulf of Oman led to the death of three Indian seafarers.

On the macroeconomic front, U.S. producer inflation accelerated in May. The Producer Price Index (PPI) rose 1.1 per cent month-on-month, above expectations of 0.7 per cent. On an annual basis, producer prices increased 6.5 per cent, the highest level since November 2022.

The European Central Bank (ECB) raised its key deposit rate by 25 basis points to 2.25 per cent, marking its first interest rate hike in nearly three years and becoming the first major central bank to tighten policy in response to economic disruptions linked to the U.S.-Iran conflict.

According to the World Bank's latest Global Economic Prospects report, India is expected to remain the fastest-growing major economy, with GDP growth projected at 6.6 per cent in FY2026-27. However, this is lower than the estimated 7.7 per cent growth recorded in the previous fiscal year.

Crude oil prices continued to decline after the cancellation of planned military action against Iran. Brent crude futures fell 1.3 per cent to USD 89.17 per barrel, while WTI crude declined 1.4 per cent to USD 86.48 per barrel. For the week, Brent and WTI have fallen 4.2 per cent and 4.4 per cent, respectively.

Gold prices edged lower and were on track for a weekly decline amid persistent inflation concerns and expectations of further Federal Reserve rate hikes. Spot gold slipped 0.3 per cent to USD 4,200.82 per ounce, while U.S. gold futures for August delivery gained 2.6 per cent to USD 4,222.10 per ounce.

The U.S. dollar stabilized after touching a one-week low. The greenback gained 0.1 per cent against the Japanese yen to 160.07, while the euro traded at USD 1.1576. The British pound remained largely unchanged at USD 1.3414.

For the June expiry series, the Put-Call Ratio (PCR) stood at 0.92. On the put side, significant open interest concentration was visible at the 23,000 strike, making it an important support level. On the call side, fresh open interest addition was seen at the 23,600 strike, while the highest open interest remained concentrated at the 24,000 strike.

Technically, the 23,000-23,100 zone remains a crucial support area for the Nifty 50. A decisive close below 23,000 could trigger fresh selling pressure and drag the index towards 22,800 and 22,700 levels. On the upside, immediate resistance is placed at 23,304, which coincides with the 8-day EMA, followed by a stronger hurdle near 23,542, close to the 20-day DMA. The broader trading range remains between 23,070 and 23,560.

Among stock-specific developments, Tata Capital allotted Non-Convertible Debentures worth Rs 2,030 crore through private placement. Ratnaveer Precision Engineering plans to raise Rs 330 crore through a rights issue. ITI Limited received approval from BSE and NSE for listing 19.65 lakh preferential shares issued to promoters.

GNG Electronics remained in focus after a promoter sold a 3.9 per cent stake, reducing shareholding to 74.77 per cent. Cyient fixed June 17 as the record date for its Rs 720 crore share buyback, while Edelweiss Financial Services closed its Rs 3,000 crore NCD issue ahead of schedule due to strong investor demand.

SP Apparels entered into a GBP 4 million loan agreement with its U.K. subsidiary. Shares of Vedanta Iron and Steel, the demerged entity, are scheduled to list on exchanges on June 15. Dabur India informed that the U.S. FDA issued Import Alert 66-40 for its Silvassa facility, though the company expects negligible impact on operations and financial performance. Federal Bank launched 'FCNR Max', a new FCNR(B) deposit product aimed at NRI customers.

Kaynes Technologies remains under the F&O ban for June 12.

Foreign Institutional Investors (FIIs) remained net sellers on June 11, offloading equities worth Rs 1,987 crore. Domestic Institutional Investors (DIIs) were net buyers and purchased shares worth Rs 4,224.51 crore.

Indian equity benchmarks ended lower on Thursday after a highly volatile trading session. The Nifty 50 slipped below the 23,200 mark amid broad-based selling pressure, although pharma, private banking and media stocks managed to outperform. The Sensex declined 150.63 points, or 0.20 per cent, to close at 73,832.55, while the Nifty 50 fell 53.35 points, or 0.23 per cent, to settle at 23,161.60.

U.S. markets ended sharply higher on Thursday after President Trump announced the cancellation of planned military strikes against Iran, easing geopolitical concerns. Investor sentiment was also supported ahead of the expected market debut of Elon Musk's SpaceX.

The Dow Jones Industrial Average surged 929.97 points, or 1.86 per cent, to 50,848.75. The S&P 500 advanced 127.31 points, or 1.75 per cent, to 7,394.30, while the Nasdaq Composite jumped 640.16 points, or 2.54 per cent, to close at 25,809.66.

Disclaimer: The article is for informational purposes only and not investment advice.

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