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Sensex, Nifty trade in fine-fettle after gap-up start amid US-Iran deal hopes
Jun-12-2026

Indian equity benchmarks made a gap-up start on Friday as investors welcomed signs of de-escalation in the conflict that had rattled global markets in recent months. Firm cues from Wall Street overnight as well as rally in Asian peers boosted the domestic sentiments after US President Donald Trump said that Washington has reached a great settlement with Iran, and only the finalisation of the document remains. The deal will be signed over the next few days, and the Strait of Hormuz will reopen. Sensex and Nifty were trading in fine-fettle in early deals on account of healthy buying in all the sector indices led by Telecom, Industrials and Realty. Meanwhile, investors are eyeing India's retail inflation data, scheduled to be released later in the day. On the sectoral front, fertiliser stocks were in focus as the government may have to reassess its subsidy for FY27 following the sharp decline in global rates. 

The BSE Sensex is currently trading at 74636.33, up by 803.78 points or 1.09% after trading in a range of 74593.68 and 74859.16. There were 24 stocks advancing against 6 stocks declining on the index.

The top gaining sectoral indices on the BSE were Telecom up by 1.86%, Industrials up by 1.84%, Realty up by 1.73%, Capital Goods up by 1.32% and Consumer Discretionary up by 1.28%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Interglobe Aviation up by 3.40%, Eternal up by 2.91%, Larsen & Toubro up by 2.38%, Bajaj Finance up by 2.15% and HDFC Bank up by 1.83%. On the flip side, Tech Mahindra down by 0.66%, Power Grid down by 0.44%, Tata Steel down by 0.28%, HCL Technologies down by 0.18% and NTPC down by 0.11% were the top losers.

Meanwhile, the World Bank, in its Global Economic Prospects report, has said that India’s economic growth is likely to moderate to 6.6 per cent in fiscal year 2026-27 (FY27), down from 7.7 per cent in the previous year. Despite this slowdown, India is likely to retain its position as the world’s fastest-growing major economy. The moderation in growth is attributed to slower private demand, driven by higher energy prices and rising input costs. However, the report noted that reductions in Goods and Services Tax (GST) rates are expected to provide some support to consumer demand. It also projected that economic growth would rebound to 7.2 per cent in FY28.

The report further highlighted that, despite heightened uncertainty arising from the ongoing conflict, India’s economic activity remained robust in the early part of the year, supported by resilient domestic demand. Private consumption, particularly in rural areas, remained strong, while urban demand showed signs of recovery. It also noted a steady increase in tax collections from domestic sales. To ease inflationary pressures stemming from higher energy costs and shortages of agricultural products - especially fertilizers- the government has implemented several measures, including reductions in fuel taxes.

It said ‘Reduced US tariffs and the expected implementation of free trade agreements will likely mitigate the impact of weaker external demand due to the conflict, particularly on merchandise exports’. It further said ‘Growth is then anticipated to rebound over the next two fiscal years, driven by firming domestic demand and a pickup in export growth’. In per capita terms, growth in Emerging Markets and Developing Economies (EMDEs) in 2026 is projected to slow to its weakest pace since the pandemic, with the conflict and lingering disruptions impacting EMDEs to varying degrees.

In EMDEs, excluding China and India, subdued per capita income growth is expected to lead to nearly a decade of lost income convergence with advanced economies by 2028. Moreover, growth in the South Asia Region is expected to soften to 6.3 per cent in 2026, mainly reflecting the adverse impact of the conflict in the Middle East, including higher energy prices, reduced supplies of oil and natural gas, and disruptions to remittances and tourism.

The CNX Nifty is currently trading at 23379.35, up by 217.75 points or 0.94% after trading in a range of 23357.05 and 23455.95. There were 37 stocks advancing against 12 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Interglobe Aviation up by 3.58%, Eternal up by 2.89%, Bajaj Finance up by 2.35%, Shriram Finance up by 2.31% and Larsen & Toubro up by 2.28%. On the flip side, ONGC down by 1.70%, Hindalco down by 0.65%, Dr. Reddy's Lab down by 0.63%, Tech Mahindra down by 0.61% and Bajaj Auto down by 0.50% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 2207.73 points or 3.44% to 66,425.00, Taiwan Weighted rose 1007.93 points or 2.34% to 44,157.39, KOSPI increased 642.43 points or 8.27% to 8,406.38, Hang Seng advanced 485.71 points or 1.96% to 24,735.00, Jakarta Composite gained 145.81 points or 2.48% to 6,031.84, Shanghai Composite strengthened 62.28 points or 1.56% to 4,049.29 and Straits Times was up by 21.25 points or 0.43% to 5,009.35.
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