Mumbai, June 12, 2026, 16:32 (IST)
• Nifty 50 ended up 1.99% at 23,622.90. Sensex gained 2.3% to finish at 75,527.95.
• Brent crude dropped to around $87 a barrel and that sent banks, airlines, cement, paint and other oil-sensitive stocks higher.
• Markets watch for progress in US-Iran peace talks. A signed deal could help keep oil at $90 or lower.
Indian stocks jumped on Friday for their best day in two months. The Nifty 50 rallied 461.30 points to close at 23,622.90, while the BSE Sensex gained 1,695.40 points to finish at 75,527.95. BSE-listed market value climbed by around ₹10 lakh crore, bringing total market cap close to ₹462 lakh crore. Buying was heavy in large caps, banks, and across the broader market.
Global risk appetite got a lift after US President Donald Trump said a peace deal with Iran could get signed as soon as this weekend, though Tehran hadn’t made up its mind. Brent crude dropped 4% to near $87 a barrel, hitting a two-month low. That has implications for India, as cheaper oil can help with inflation, the rupee, and the current-account gap. Rajesh Palviya, head of research at Axis Direct, told Reuters: “The decline in crude prices, easing geopolitical fears have helped sentiment recover and this could continue in the near term.” Reuters
Cheaper crude mattered for Indian stocks, with the country importing most of its oil. Lower prices can help company margins in sectors that use a lot of fuel or raw materials. Reuters said oil marketing firms, airlines, tyre stocks, paint and cement names all moved higher. Moneycontrol numbers had Nifty Bank up 2.97%, Nifty Auto gained 1.95%, and BSE Capital Goods added 2.24%.
Banks led gains in the index after the Reserve Bank of India moved to help overseas funding and boost dollar inflows. HDFC Bank, Larsen & Toubro, Reliance Industries, ICICI Bank, and Bajaj Finance drove most of Nifty’s gains, Moneycontrol reported. IT stocks stayed weak—Nifty IT finished a bit lower, and Reuters said tech shares lost 4.2% this week as concerns lingered on AI disruption and US inflation, with global rate outlooks still tight and tech spending under pressure.
Lower oil and a more stable rupee could bring back foreign buyers, bulls say, after a tough year. Reuters said foreign investors have pulled nearly $30 billion from Indian stocks in 2026. But Lighthouse Canton’s India CIO Abhay Laijawala said India might catch the next round of AI-driven spending, especially for power, data centers, electrical gear, engineering and capital goods. “We have plenty of picks and shovels,” Laijawala said about the infrastructure names tied to AI, rather than chipmakers. Reuters
Friday’s jump has a bear case behind it, hinging on geopolitical calm and oil prices not breaking out. India’s retail inflation for May picked up to 3.93% from April’s 3.48%, pushed by higher food and fuel, Reuters reported. The RBI bumped its inflation outlook for the fiscal year to 5.1% from 4.6% on oil and monsoon worries. Next up for investors: a possible US-Iran deal, whether crude stays close to $90, foreign inflows, and whether inflation gives the RBI enough room to hold off on a more cautious approach.
After the surge, Indian large caps look more selectively attractive rather than a broad bargain. The Nifty 50 traded near a price-to-earnings ratio of 20.0. That’s investors paying about ₹20 for every ₹1 of trailing earnings. The price-to-book sits at 3.05 and the dividend yield at 1.21%. Those levels are around fair value, not distressed. Palviya told ETMarkets the technical tone for Nifty stays better while it holds the 23,300–23,350 zone, but said the market could slip if oil reverses or peace talks let down after this sharp jump.
