The stock markets staged a spectacular rally on June 12, with benchmark indices posting their biggest single-day gains in weeks after optimism over a possible US-Iran peace agreement triggered a sharp fall in crude oil prices. The decline in oil eased concerns over inflation, fiscal pressures and India's import bill, prompting strong buying across banking, financial, auto and realty stocks.
The rally added nearly ₹9.71 lakh-crore to investors' wealth in a single session as market sentiment turned decisively positive.
The Sensex jumped 1,695.40 points, or 2.30 percent, to close at 75,527.95, while the NSE Nifty 50 rose 461.30 points, or 1.99 percent, to settle at 23,622.90.
The gains came after reports suggested progress in negotiations between the US and Iran, raising hopes of a settlement that could reduce tensions in the Middle East and ensure smooth oil supplies through the Strait of Hormuz.
A key trigger for the rally was a sharp correction in global oil prices.
Brent crude fell about 5 percent and slipped below $90 a barrel.
Lower oil prices are particularly beneficial for India, one of the world's largest crude importers.
The decline is expected to ease inflationary pressures and improve the country's macroeconomic outlook.
The market capitalisation of BSE-listed companies surged significantly during the session.
Total market value rose to ₹462.05 lakh-crore.
This compares with ₹452.33 lakh-crore in the previous session.
Investors gained ₹9.71 lakh-crore in a single day.
Financial shares spearheaded the rally, with strong participation from banks and NBFCs.
Top Nifty gainers included:
Shriram Finance (+8.1 percent)
Bajaj Finance (+5.9 percent)
Larsen & Toubro
InterGlobe Aviation (IndiGo)
Tata Motors
Titan
Most major banking and financial counters witnessed strong buying throughout the day.
Technology stocks were the only major sector to miss the rally.
Key laggards included:
Nestlé India (-3.2 percent)
ONGC (-2.2 percent)
Tech Mahindra
SBI Life Insurance
Tata Consumer Products
Oil producers faced pressure as falling crude prices could affect earnings.
The rally extended well beyond large-cap stocks.
Nifty Midcap 100 gained 2.43 percent.
Nifty Smallcap 100 advanced 2.80 percent.
The broad-based participation reflected renewed risk appetite among investors.
Almost all sectoral indices ended in positive territory.
Major gainers:
Nifty Financial Services: +3.15 percent
Nifty Bank: +2.97 percent
Nifty Private Bank: +2.84 percent
Nifty PSU Bank: +2.71 percent
Realty index: +3.5 percent
Auto, oil and gas, and consumer durables sectors also posted gains of more than 2 percent.
Market breadth remained overwhelmingly positive.
Advancing stocks on NSE: 2,740
Declining stocks: 564
Advance-decline ratio: nearly 5:1
Meanwhile, 67 stocks touched fresh 52-week highs, while 44 hit new 52-week lows.
Technical indicators suggest improving momentum after Nifty snapped a two-week losing streak.
Key levels to watch:
Immediate resistance: 23,720
Next target zone: 24,000
Near-term support: 23,500
Strong support: 23,070
Market participants will now closely track developments surrounding the proposed US-Iran agreement, movements in crude oil prices and global risk sentiment for further direction.