SENSEX, NIFTY50 indices rise 1% as US and Iran reach peace agreement

The Indian equity benchmarks surged for a second straight session on Monday, June 15, as bullish sentiment prevailed in across equities as crude oil prices dropped and global markets rallied after United States and Iran reached a peace agreement. The SENSEX rose as much as 1,293 points and NIFTY50 index touched an intraday high of 24,011 on the back of a broad based buying interest.

The SENSEX ended 736 points or 1% higher at 76,264 and NIFTY50 index advanced 231 points or 1% to close at 23,854.

Crude oil prices crashed in international markets after President Donald Trump ordered to stop the US naval blockade of the Strait of Hormuz. Brent Crude dropped nearly 3% to $79.84 per barrel.

US President Trump confirmed the deal and authorised an end to the US naval blockade of Iranian ports. But it may take months for oil prices to stabilise after the disruptions from the war caused them to surge, pushing costs up gasoline and many other products.

Details of the deal were not immediately released and Iran signalled implementation would not start until the signing, which key mediator Pakistan said would occur Friday in Switzerland. It could provide a way to end a war that killed thousands across the Middle East, including the top leaders of Iran’s theocracy, and sparked a historic energy crisis.

Back home, 12 of 15 major sector gauges compiled by the National Stock Exchange (NSE) ended higher led by the NIFTY Realty index's 4% gain. NIFTY Consumer Durables, Auto, Financial Services, Metal, IT and Oil & Gas indices also rose between 1% and 3%.

On the other hand, select healthcare, pharm and media shares ended lower.

Broader markets also witnessed buying interest as NIFTY Midcap 100 index rose 1.3% and NIFTY Smallcap 100 index advanced 1.11%.

Trent was top gainer in the NIFTY50 index, the stock rose 5.31% to close at ₹2,902. HDFC Life, Shriram Finance, Eicher Motors, IndiGo, Bajaj Finserv, SBI Life, Maruti Suzuki and Ultratech Cement also rose between 3.2% and 4.72%.

On the flip side, NTPC, Bajaj Auto, ONGC, ICICI Bank, Hindalco, Asian Paints, Hindustan Unilever and Cipla were top losers in theNIFTY50 index.

The overall market breadth was positive as 2,510 shares ended higher while 831 closed lower on the NSE.