SENSEX surges over 1,200 points, NIFTY50 above 23,950; rupee strengthens, crude falls as US and Iran agree on a peace deal

The Indian equity benchmarks staged a gap up opening on Monday, June 15, as rupee strengthened and crude oil prices dropped in global markets after the United States and Iran agreed on a peace deal. The SENSEX rose as much as 1,293 points to hit an intraday high of 76,821 and NIFTY50 index reclaimed its important psychological level of 24,000 powered by a broad-based buying interest.

As of 9:25 am, the SENSEX was up 1,106 points at 76,633 and NIFTY50 index advanced 324 points to 23,946.

Asian markets were trading sharply higher following the announcement of the peace deal between US an Iran. Japan's Nikkei surged 5.42%, China's Shanghai Composite advanced 1.21%, Hong Kong's Hang Seng surged 0.6% and South Korea's KOSPI climbed 5.13%.

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, rupee strengthened against the US dollar as the local unit jumped 53 paise to 93.65 against the US dollar in early trade.

Buying was visible across board as 13 of 15 major sector gauges compiled by the National Stock Exchange (NSE) were trading higher led by the NIFTY Realty index's 2.75% gain. NIFTY Auto, Bank, Financial Services, Metal, PSU Bank, Consumer Durables and Oil & Gas indices also rose between 1% and 1.8%.

On the flip side, pharma and healthcare indices were trading with a negative bias.

Broader markets were also witnessing buying interest as NIFTY Midcap 100 index advanced 1.36% and NIFTY Smallcap 100 index advanced 1.4%.

Shares of crude oil-linked companies such as oil marketing companies (OMCs), paints, tyres, and aviation, were trading with notable gains as crude oil prices tumbled in the international market.

Oil prices dropped over 4% in the early trade after US President Donald Trump announced that the United States and Iran have completed a key step towards an active peace agreement, which is set to be signed later this week.

Tata Motors PV was top gainer in the NIFTY50 index, the stock rose 4.5% to ₹407. Shriram Finance, InterGlobe Aviation, Eternal, Larsen & Toubro, Bajaj Finance, Maruti Suzuki and UltraTech Cement also rose between 2.44% and 4%.

On the other hand, Apollo Hospitals, Cipla, ONGC, Sun Pharma and Bajaj Auto were notable laggards in the NIFTY50 index.