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The equity benchmark indices BSE Sensex and NSE Nifty closed sharply higher on Friday (June 12), with the benchmark indices recording their strongest gains in recent sessions as reports of a potential US-Iran deal and a decline in crude oil prices supported risk appetite.
The Sensex rose 1,695 points to end at 75,528, while the Nifty advanced 461 points to close at 23,623, reclaiming the 23,600 level.
Three key factors drove the rally.First,
reports surrounding a possible US-Iran deal improved market sentiment.
Also Read: More than 50% chance of a 10% market correction if AI rally continues, says MacquarieSecond, Brent crude oil prices slipped below $87 per barrel, boosting sectors that benefit from lower fuel costs. Downstream oil companies rallied, while upstream oil companies came under pressure. Commercial vehicle manufacturers and commercial vehicle financiers also gained as crude prices declined.
Third, broader participation strengthened the upmove. The NSE advance-decline ratio stood at 5:1, indicating strong buying across the market. Broader markets outperformed the benchmarks. The Nifty Midcap Index gained 1,443 points to close at 60,768, while the Nifty Bank Index rose 1,638 points to 56,815.
Sectoral performance remained positive across the board, with all major indices ending in the green except Nifty IT and Nifty CPSE. Nifty Realty emerged as the top-performing sector. Among Sensex constituents, 25 of the 30 stocks ended higher.
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In the midcap space, Ashok Leyland, Sterling & Wilson, L&T Finance and AB Capital were among the top gainers. HPCL also advanced sharply.
On the downside, Nestle India fell more than 3% after the Food Safety and Standards Authority of India issued a notice over alleged insect detection in Maggi.
Technology stocks remained under pressure, with the Nifty IT index closing lower for the eighth consecutive session. Tech Mahindra declined more than 2%.
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Among Nifty stocks, Shriram Finance, Bajaj Finance, L&T, IndiGo and Tata Motors' passenger vehicle business were among the notable laggards despite the broader market rally.
Market This Week
The equity benchmarks ended the week in the green (June 8 to 12), snapping a two-week losing streak. Gains in banking stocks helped support the market, while broader market performance remained mixed.
The Nifty Bank index outperformed the broader market and recorded its best weekly gains in two months. The index also extended its winning run to a fourth consecutive week, led by gains in Kotak Mahindra Bank and Axis Bank.
Among sectoral indices, Nifty Bank and Nifty PSU Bank emerged as the top gainers for the week, with banking stocks attracting strong buying interest. The Nifty IT index was the worst-performing sectoral index during the week. All constituents of the index ended lower except L&T Technology Services.
Also Read: Explained - Why Nestle India shares saw a sharp fall on Friday
On the benchmark index, Kotak Mahindra Bank, Axis Bank, ICICI Bank, IndiGo and SBI were among the top gainers. On the other hand, Wipro, ONGC, Infosys, Hindalco and Coal India featured among the top losers.
Broader markets underperformed the benchmarks, with the Nifty Midcap Index ending the week largely flat. Oil India, Kalyan Jewellers and Oracle Financial Services Software were among the biggest losers in the midcap space.
Among midcap gainers, Bank of Maharashtra, Ashok Leyland, IDFC First Bank and AU Small Finance Bank led the advances during the week.
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