Indian equities extended their winning streak for a third consecutive session on June 16, with benchmark indices ending firmly higher as easing geopolitical tensions and a sharp decline in crude oil prices lifted investor confidence.
The US-Iran peace agreement and the possible reopening of the Strait of Hormuz have significantly reduced concerns over energy prices, inflation and global economic growth. For India, a major crude importer, the fall in oil prices is seen as a major positive for both the economy and corporate earnings.
The Sensex climbed 544 points, or 0.71 percent, to close at 76,809, while the Nifty 50 gained 135 points, or 0.57 percent, to finish at 23,989. Over the past three trading sessions, the benchmark indices have risen nearly 4 percent.
Market participants are now turning their attention to the upcoming US Federal Reserve policy meeting, the first under new Fed Chair Kevin Warsh.
Analysts said lower crude prices improved India's macroeconomic outlook by easing inflationary pressures and supporting the rupee.
Key positives from the fall in oil prices include:
Reduced inflation concerns
Improved currency stability
Better outlook for corporate earnings
Lower import costs for the economy
Increased investor confidence
The market rally added substantial wealth for investors.
Total market capitalisation of BSE-listed companies rose to ₹472.25 lakh-crore
Investor wealth increased by ₹1.76 lakh-crore in a single session
Technology shares emerged as the biggest contributors to the rally.
Top Nifty gainers:
HCL Technologies (+3.7 percent)
Tata Consumer Products (+2.7 percent)
NTPC
Bajaj Finserv
Hindustan Unilever
HCL Technologies gained after announcing plans to acquire a 10.5 percent stake in generative AI start-up Sarvam AI.
Despite the broader market strength, metal stocks witnessed selling pressure following weakness in global metal prices.
Top Nifty losers:
Hindalco (-2.95 percent)
JSW Steel
HDFC Life
Eicher Motors
Maruti Suzuki
The positive sentiment extended beyond large-cap stocks.
Nifty Midcap index gained 0.41 percent
Nifty Smallcap index rose 0.42 percent
The advance reflected broad participation across sectors and market capitalisations.
IT (+1.78 percent)
Realty
Media
FMCG
Construction
Oil & Gas
Metals (-1.55 percent)
Auto
Pharma
Healthcare
PSU Banks
Cement
Among the most actively traded stocks by volume:
Vodafone Idea: 49.24 crore shares
Suzlon Energy
Motisons Jewellers
YES Bank
Each of the latter three recorded volumes exceeding 20 crore shares.
Market breadth remained positive.
83 stocks touched new 52-week highs
28 stocks fell to fresh 52-week lows
Stocks hitting one-year highs included:
Bandhan Bank
Federal Bank
IFCI
RateGain Travel Technologies
YES Bank
Aeroflex Industries
Deccan Gold Mines
The advance-decline ratio favoured bulls.
Advancing stocks: 1,956
Declining stocks: 1,356
The figures indicate continued buying interest across the broader market.
Technical analysts believe the market retains a positive undertone as Nifty continues to trade above its key short-term moving averages.
Key levels to watch:
Immediate resistance: 24,080–24,100
Next upside targets: 24,250 and 24,400
Immediate support: 23,900–23,880
Analysts say a decisive move above 24,100 could trigger fresh buying and extend the ongoing rally.