Winning Bizness Desk
Mumbai.Indian equity markets staged a spectacular rebound on Friday as investor sentiment improved sharply on reports of a possible peace agreement between Iran and the United States. The benchmark Sensex soared 1,695 points to close at 75,527, while the Nifty gained 461 points to settle at 23,622. The rally came a day after the market had witnessed heavy selling pressure. Hopes that geopolitical tensions in West Asia could ease, along with a decline in crude oil prices, encouraged investors to return to equities in a big way. Global markets also reacted positively to reports that diplomatic talks between Washington and Tehran were moving forward. (The Times of India)
Renewed hopes lift investor confidence
The biggest trigger for the rally was a statement by US President Donald Trump, who claimed that Iran’s leadership had approved a framework for a fresh agreement. Reports suggested the proposed deal could include restrictions on Iran’s nuclear programme and measures to reopen the strategically important Strait of Hormuz. While Iran has not officially confirmed the agreement and has said discussions are still under review, investors focused on the possibility of reduced tensions in the region. (Hindustan Times)
Buying seen across key sectors
Strong buying was visible in rate-sensitive and financial stocks throughout the session. Realty, private banking, public sector banking and financial services counters led the gains as investors increased exposure to sectors expected to benefit from a stable economic environment.
Key sectors that attracted buying included:
- Realty companies
- Private sector banks
- Public sector banks
- Financial services firms
Market experts said lower oil prices would be positive for India, a major crude importer, and could help improve inflation and corporate profitability.
Asian and US markets add support
The positive mood was not limited to India. Major Asian markets ended higher, reflecting global optimism over the possibility of a diplomatic breakthrough.
Major Asian market gains:
- South Korea’s Kospi rose 4.63%
- Japan’s Nikkei gained 2.81%
- Hong Kong’s Hang Seng climbed 1.93%
The previous trading session had also seen strong gains on Wall Street:
- Dow Jones advanced 930 points
- Nasdaq surged 640 points
- S&P 500 rose 127 points
Global investors welcomed signs that tensions in the Middle East could ease and oil supplies remain uninterrupted.
Foreign investors remain cautious
Despite Friday’s sharp rally, foreign institutional investors continued to remain net sellers. Data showed that FIIs sold shares worth Rs 1,987 crore in the previous session. Domestic institutional investors, however, remained supportive and purchased equities worth Rs 4,225 crore.
Investment flows snapshot:
- DII buying: Rs 4,225 crore
- FII selling: Rs 1,987 crore
- DII buying in last 30 days: Rs 94,083 crore
- FII selling in last 30 days: Rs 75,139 crore
The data highlights how domestic money continues to cushion the market despite sustained foreign outflows.
Sharp recovery after previous day’s fall
Friday’s rally marked a dramatic turnaround from Thursday’s weak session. On June 11, the Sensex had fallen 562 points from its intraday high to close at 73,833, while the Nifty ended at 23,162. IT and banking stocks had led the decline. The benchmark index had initially recovered during the day but selling pressure after 1 pm erased gains and dragged the market lower. Friday’s surge not only wiped out those losses but also signalled renewed confidence among investors betting on improved global conditions and easing geopolitical risks.
