Sensex rises 1,700 pts intra-day; Nifty above 23,600: Key reasons here

A Bloomberg report said that the US and Iran are edging closer to signing an agreement to reopen the Strait of Hormuz as the Group of Seven world leaders are set to meet next week.

Stock Market Today: Indian benchmark indices rallied on Friday, June 12, 2026, as easing geopolitical tensions lifted investor sentiment. The BSE Sensex surged more than 1,700 points or 2 per cent to an intra-day high of 75,608.02. Similarly, the Nifty50 advanced more than 450 points or 1.98 per cent to make a high of 23,645.35.

At close, the Sensex was up 1,695.40 points, or 2.30 per cent at 75,527.95. The 50-share Nifty index added 461.30 points, or 1.99 per cent to end at 23,622.90.

Fromthe Sensex pack, Bajaj Finance, L&T, IndiGo, Titan, HDFC Bank and Eternal were the top gainers. Tech Mahindra and Power Grid were only two counters to finish in the red.

In the broader market, the Nifty MidCap 100 and SmallCap 100 surged 2.43 per cent and 2.80 per cent, respectively. Sectorally, all indices traded in the green barring the Nifty IT. The Nifty Bank index climbed 2.97 per cent, while the Nifty Financial Services index surged 3.15 per cent. The Nifty Realty also gained more than 3 per cent.

Stock Market Rally: Why did Sensex and Nifty surge today?

West Asia conflict eases, crude falls

Geopolitical tensions eased after reports said that the US and Iran were very close to signing a deal. According to a Bloomberg report, the US and Iran are edging closer to signing an agreement to reopen the Strait of Hormuz as the Group of Seven world leaders are set to meet next week. As per the report, a senior Iranian official indicated overnight that a deal is likely, said a G7 official, who asked not to be named discussing sensitive matters. Another G7 official said it will likely take the form of a memorandum of understanding, rather than a final deal.

Earlier on Thursday, US President Donald Trump said that a deal between the US and Iran would be signed soon, with the documents in their final stages. The president added that under the deal, “Iran will never have a nuclear weapon.”

Following the development, Brent crude oil futures fell 1.05 per cent to $89.43 per barrel.

“Easing geopolitical tensions have provided significant relief to energy markets, with crude oil prices falling sharply. Lower oil prices are positive for India as they help ease inflationary pressures, reduce the import bill, and support corporate earnings,” said Ponmudi R, CEO, Enrich Money.

While a formal US-Iran agreement is still pending, Ponmudi noted that market participants will closely watch whether the easing geopolitical backdrop can trigger a meaningful turnaround in foreign portfolio flows. Persistent foreign portfolio investor (FPI) selling over recent months has remained one of the key factors capping a sustained recovery in Indian equities — and any reversal here could be the next big trigger for markets.

Global markets rally

Asian markets surged on Friday — South Korea’s Kospi jumped 8.27 per cent, Japan’s Nikkei gained 3.47 per cent, mainland China’s CSI 300 advanced 1.53 per cent, and Hong Kong’s Hang Seng rose 1.85 per cent.

Overnight, Wall Street ended sharply higher — the Dow Jones gained 1.86 per cent, while the S&P 500 and Nasdaq jumped 1.75 per cent and 2.54 per cent, respectively.

“The global backdrop improved significantly overnight after indications of a possible diplomatic resolution between the US and Iran eased concerns over a broader conflict. This sparked a strong rally across US markets, with gains led by technology stocks, while Asian markets are also trading higher in response,” said Rajesh Palviya, head of research, Axis Direct.

Rupee appreciates

Indian rupee surged 65 paise to 95.20 against the US dollar in early trade on Friday. At the interbank foreign exchange, the rupee opened at 95.40 before rising further to 95.20 against the greenback. The rupee had plunged 60 paise to settle at 95.85 against the US dollar on Thursday.

VK Vijayakumar, chief investment strategist, Geojit Investments believes easing geopolitical tensions and fall in crude prices can aid Rupee

“Two consequences are likely from current developments. India will succeed in managing the BoP crisis that we have been facing since the beginning of the war. Rupee will stabilise and strengthen mildly. Since FIIs are hugely short in the market, there will be short-covering triggering a rally. Bank Nifty has the potential to outperform” said Vijayakumar.

Technical view

“The Nifty’s undertone has improved, and the index is expected to remain constructive as long as it sustains above the 23,300–23,350 zone. A decisive move above 23,500 could accelerate momentum towards 23,700 and higher levels. On the downside, 23,100 remains an important support, while a breach below this level could invite fresh selling pressure towards the 22,900 zone,” said Palviya.

He added: While near-term sentiment has turned positive, investors should remain watchful of developments on the geopolitical front, as any setback in negotiations or a renewed spike in crude prices could reintroduce volatility and cap the market’s upside.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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