Sensex Gains 852 Points, Nifty Climbs to 23,382 as US-Iran Deal Hopes and Cheaper Crude Lift Markets

Mumbai | 12 June 2026 

Indian equity markets jumped sharply in Friday’s midday session, driven by US President Donald Trump’s announcement that a deal to end the conflict with Iran was nearly complete. Brent crude fell 1.62 percent to USD 88.92 per barrel, easing pressure on the import bill and lifting sentiment across oil-sensitive sectors. 

Why Did Markets Rally? Five Key Factors 

1. US-Iran deal announcement

Trump told reporters in the Oval Office on Thursday that a peace deal with Iran was close to finalisation and could be signed over the weekend in Europe. He added that Vice President J D Vance was expected to attend the signing ceremony. Addressing a tele-rally later the same evening, Trump said: “I don’t know if you heard, but we ended the war with Iran today, and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose.” 

2. Crude oil declines

Brent crude fell 1.62 percent to USD 88.92 per barrel, near a two-month low. Lower crude prices reduce India’s import bill, ease pressure on the trade deficit and the rupee, and lower input costs for transport, aviation, and manufacturing sectors. 

3. Firm global cues

Asian markets rallied broadly. South Korea’s Kospi rose more than 8 percent, Japan’s Nikkei 225 advanced over 3 percent, and China’s Shanghai SSE Composite and Hong Kong’s Hang Seng were also in positive territory. US markets had ended significantly higher on Thursday. 

4. Rupee strengthens

The rupee appreciated 65 paise to 95.20 against the US dollar, supported by retreating crude prices, a weaker dollar, and positive domestic equity sentiment. The currency opened at 95.40 at the interbank foreign exchange market before strengthening further. 

5. India VIX eases

India VIX, the market’s volatility gauge, declined 4 percent to around 15, signalling reduced investor anxiety and improved risk appetite. 

Sectoral Performance 

Oil marketing companies BPCL, HPCL, and Indian Oil gained between 2.4 percent and 3.8 percent. IndiGo rose 3.5 percent. Infrastructure major Larsen and Toubro, which carries significant exposure to West Asia, climbed 2.8 percent. Paint, tyre, and cement stocks also traded higher on softer crude. Banking and financial stocks rose 1.4 percent each, on track for their third gain in four sessions, after the Reserve Bank of India detailed a concessional forex swap facility for banks’ overseas foreign-currency borrowings. 

Outlook 

Market direction in the near term hinges on whether the US-Iran deal is formally concluded and how crude prices respond. Domestically, the RBI’s forex swap facility is expected to improve rupee liquidity for banks over the next four months, reducing dependence on higher-cost deposits. 

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