Sensex Surges 1,695 Points as Oil Falls Below $90 on Iran Peace Deal, June 13

Indian stock markets delivered their strongest single-day rally in months on June 12 after US President Donald Trump announced plans for a peace deal with Iran and cancelled planned military strikes. The Sensex surged 1,695 points to close at 75,527, while the Nifty50 gained 461 points to settle at 23,623. Crude oil prices collapsed below $90 per barrel on expectations the Strait of Hormuz would reopen, easing supply concerns and boosting investor confidence across Asia.

Why Oil Prices Crashed and Markets Soared

Brent crude fell around 4% to trade below $87 per barrel, while WTI crude dropped over 4% to about $83 per barrel. Trump’s announcement that he cancelled planned military strikes on Iran and that a peace agreement could be finalised as soon as the weekend triggered the selloff. The Strait of Hormuz carries about one-fifth of global energy supplies, and reopening it would ease concerns about supply disruptions that had sent oil prices past $120 earlier this year.

Broad Rally Across All Sectors

All 30 Sensex stocks traded higher on the day. Tata Steel, IndiGo, L&T, Eternal, SBI and Tech Mahindra were among the top gainers, rising as much as 3%. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained close to 2% each. Nifty Realty and Nifty Financial Services Ex-Bank emerged as the top sectoral gainers, rising over 3% each. Of the 4,422 stocks traded, 3,234 advanced while 1,030 declined.

Market Capitalisation Jumps by ₹7 Lakh Crore

The rally added over ₹7 lakh crore to the market value of BSE-listed companies, taking total market capitalisation close to ₹460 lakh crore. The Indian rupee strengthened 0.7% against the US dollar to 95.11, marking its strongest single-day gain in 10 weeks. The rupee rally reflected expectations that lower oil prices would reduce India’s import bill and ease pressure on the currency.

Global Markets Join the Rally

Asian markets extended gains across the region. South Korea’s Kospi surged more than 8% in morning trading, while Japan’s Nikkei 225 rose as much as 4%. Taiwan’s TAIEX gained about 2.4%, and Australia’s ASX 200 rose about 1.8%. Wall Street also rallied, with the S&P 500 closing up 1.75% and the Nasdaq Composite jumping 2.54% on Thursday. The broad-based global rally reflected relief over easing geopolitical tensions and lower energy costs.

Final Thoughts

The Sensex rally reflects a sharp shift in investor sentiment as oil prices collapsed on Iran peace deal hopes. Lower crude prices ease inflation concerns for India’s import-dependent economy, supporting the broad-based market advance.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.