Indian equities kicked off the week on a strong note, with bulls charging through Dalal Street as an Iran-US peace framework, sliding oil prices and other factors lifted the Sensex and Nifty nearly 1% each on Monday, mirroring gains across global markets. Sensex surged over 736 points to close at 76,264, while Nifty jumped over 231 points to end the session near 23,854 after briefly crossing 24,000 during the session. The sharp gains added more than Rs 8 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to cross Rs 470 lakh crore.
Here's how analysts read the market pulse
"The interim US–Iran peace agreement has significantly improved investor sentiment, triggering a broad-based recovery across equity markets. With crude oil prices easing to below USD 85 per barrel, concerns around inflation have moderated, supporting a more stable interest rate outlook and improving earnings visibility for FY27. As the risk-reward equation turns more favourable for equities, investors have increasingly shifted toward growth-oriented sectors such as autos, industrials, capital goods, and real estate, which are well positioned to benefit from an improving macro environment. The easing in geopolitical risks is also expected to moderate bond yields, FII outflows and strengthen the rupee, further reinforcing the positive market outlook,” said Vinod Nair, Head of Research at Geojit Investments.
US Stocks
Wall Street's main indexes rose on Monday, with the Dow touching an intraday high after the United States and Iran struck a preliminary agreement to end their war and reopen the Strait of Hormuz, leading to a sharp fall in crude prices.
The framework for a deal, however, did not address key issues such as Tehran's nuclear program and the conflict between Israeland Lebanon. The pact is expected to be formally signed in Switzerland on Friday.
Crude prices slid about 5% following the news and hit their lowest level since March, aiding shares of energy-sensitive airline and cruise stocks and hurting energy shares.
Chip stocks moved higher, with Micron soaring 9% after multiple brokerages raised its price targets, while Nvidia was up 2.3%, Intel added 5.2% and Marvell Technology rose 5.5%.
A resumption of oil flows from the Middle East and easing crude prices could give the U.S. Federal Reserve room to maneuver as it grapples with inflation.
Traders expect the Fed to leave interest rates unchanged this week, but have pared back expectations for a 25-basis-point hike by the end of the year to 70%, from fully priced in the previous week, according to LSEG data.
European markets
Share markets and bonds rallied on Monday and oil prices tumbled 5% as a framework peace deal between the United States and Iran was expected to ease inflationary pressures globally and lessen the need for higher interest rates.
Germany's DAX rose 267.27 points, or 1.08%, to 24,902.57, France's CAC gained 47.31 points, or 0.57%, to 8,398.18, and the STOXX 600 advanced 1.57 points, or 0.25%, to 634.78, while Britain's FTSE slipped 35.87 points, or 0.34%, to 10,435.85.
Tech view
Following a gap-up start, the Nifty witnessed a phase of downward consolidation during the day, which is a natural market behavior after opening with a significant gap, said Rupak De, Senior Technical Analyst at LKP Securities. However, the index managed to hold above the crucial 23,800 level by the close. Therefore, the near-term sentiment is likely to remain positive, with the potential for further upside as long as the index sustains above 23,800,” he added.
“On the higher side, the Nifty may move towards 24,000–24,200 in the coming sessions. On the other hand, a breach below 23,800 could trigger a phase of near-term consolidation and limit the immediate upside momentum,” he further said
Most active stocks in terms of turnover
HDFC Bank (Rs 3,134 crore), Reliance Industries (Rs 2,443 crore), ICICI Bank (Rs 2,167 crore), BSE (Rs 1,925 crore), L&T (Rs 1,663 crore), Mahindra & Mahindra (Rs 1,657 crore), and Kalyan Jewellers (Rs 1,481 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 56.8 crore), Ola Electric (Traded shares: 17.42 crore), Yes Bank (Traded shares: 16.16 crore), JP Power (Traded shares: 6.68 crore), Suzlon Energy (Traded shares: 6.50 crore), Ashok Leyland (Traded shares: 5.34 crore) and NHPC (Traded shares: 5.22 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Aarti Industries, Kalyan Jewellers, Schneider, Balkrishna Industries, Sundaram Finance, TBO Tek and HDFC AMC were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Apar Industries, Nippon Life AMC, Aegis Logistics, ABSL AMC, Minda Corp, Angel One and Bandhan Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Reliance Infra, Aurobindo Pharma, Zee Entertainment Enterprises, Ola Electric, Aster DM Health, Deepak Fertilisers and GE T&D India.
52-week low
Among the ones that hit their 52-week lows on NSE included IFCI.
Sentiment meter favours bulls
Out of the 3,453 stocks that traded on the NSE on June 15, Monday, 2,510 stocks witnessed advances, 831 saw declines while 112 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
