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US-Iran deal hopes, sharp fall in crude oil prices lift markets higher in passing week
Jun-12-2026

Indian markets ended sharply higher passing week amid signs of easing tensions between US and Iran and a sharp decline in crude oil prices. Traders were cautious initially following fresh US military action against Iran. However, markets gained momentum toward the week's end after President Trump indicated that Washington reached a settlement with Iran, lifting investor confidence.

Some of the major developments during the week are:

India's GDP growth jumps to 7.7% in FY26: India's Gross Domestic Product (GDP) growth jumped to 7.7% in the fiscal year 2025-26 (FY26), retaining its position as the world's fastest-growing major economy despite global trade and geopolitical uncertainties. The growth rate in FY25 was 7.1%.

Fitch Ratings lowers India’s GDP growth projections for FY27: Fitch Ratings in its latest report has lowered India’s GDP growth projections to 6.4% for FY27 from 6.7% estimated earlier in March, as rising prices erode real incomes and dampen consumer spending, amid resilient capital expenditure.

India reports current account surplus in Q4FY26: The RBI’s data on Developments in India’s Balance of Payments has showed that India reported a current account surplus of $7.1 billion, or 0.7 per cent of Gross Domestic Product (GDP), in the January-March quarter of 2025-26 (Q4FY26).

Govt waives excise duty on variants of ethanol-blended petrol: The government has waived excise duty on variants of ethanol-blended petrol, to encourage customers to move towards ethanol-blended petrol. The finance ministry said the excise duty will be nil on petrol with 22%, 25%, 27% and 30% ethanol blend.

India’s growth to slow down in FY27, but still to remain fastest-growing major economy: The World Bank has said that India’s economic growth is likely to moderate to 6.6% in FY27, down from 7.7% in previous year. Despite this, India is likely to retain position as the world’s fastest-growing major economy.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 1284.61 points or 1.73% to 75,527.95 during the week ended June 12, 2026. On the sectoral front, S&P BSE BANKEX was up by 2,509.18 points or 4.08% to 63,987.80, S&P BSE Finance was up by 379.17 points or 3.21% to 12,200.79 and S&P BSE Fast Moving Consumer Goods was up by 213.17 points or 1.19% to 18,139.99 were the top gainers, while S&P BSE Information Technology was down by 1,053.28 points or 3.73% to 27,167.90,S&P BSE Metal was down by 1,208.07 points or 2.80% to 42,004.45 and S&P BSE Power was down by 214.87 points or 2.64% to 7,920.40 were the top losers on the BSE.

NSE movement for the week

The Nifty surged 256.20 points or 1.10% to 23,622.90. On the National Stock Exchange (NSE), Bank Nifty was up by 2318.55 points or 4.25% to 56,814.80, and Nifty Mid Cap 100 increased 13.20 points or 0.02% to 60,768.10, while Nifty IT was down by 1214.55 points or 4.19% to 27,795.75 and Nifty Next 50 lost 184.75 points or 0.26% to 70,007.20.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 65,456.66 crore and gross sales of Rs 85,382.75 crore, leading to a net outflow of Rs 19,926.09 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 18,915.27 crore against gross sales of Rs 5,281.76 crore, resulting in a net inflow of Rs 13,633.51 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 194.80 crore and gross sales of Rs 197.65 crore, leading to a net outflow of Rs 2.85 crore.

Industry and Economy

Expressing optimism over India’s exports growth, Nitin Kumar Yadav, Additional Secretary at the Union Ministry of Commerce, has said that India’s total exports reached an all-time high of $863 billion in FY 2025-26, up from $468 billion in FY 2014-15, reflecting a compound annual growth rate (CAGR) of 5.7 per cent. During this period, merchandise exports rose from $310 billion to $442 billion, while services exports surged from $158 billion to $421 billion. Non-petroleum exports also set a new record at $387.9 billion, underscoring the depth and diversity of India’s export base. Highlighting India’s achievements in forging trade agreements, Yadav noted that the country has concluded several landmark deals that strengthen its position in global value chains.

Outlook for the coming week

Indian benchmarks settled higher in the passing week after oil prices tumbled and concerns about Middle East tensions eased following U.S. President Donald Trump calling off his planned attacks on Iran.

In the coming week, investors will be closely watching the WPI inflation data, scheduled for release on June 15. Traders will also keep an eye on unemployment figures, passenger vehicle sales, exports and imports data, minutes of monetary policy meeting, and foreign exchange reserves.

Meanwhile, Prime Minister Narendra Modi will be undertaking an official visit to France from June16-18, 2026 (Evian and Paris), also to Slovakia from June 14-16, 2026. The visit will reaffirm India's commitment towards advancing its broader strategic partnership with the European Union.

On the global front, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Industrial Production on June 15, followed by Housing Starts, Export & Import prices and Redbook on June 16, API Crude Oil Stock, Retail Sales and EIA Crude Oil Stocks on June 17, Fed Press Conference and Initial Jobless Claims on June 18, and Net Long-term TIC Flows on June 19.

Top Gainers 

  • Axis Bank up by 8.22% was the top gainer on Nifty for the week - Axis Bank traded jubilantly along with other banking stocks after Reserve Bank of India (RBI) introduced a US dollar-rupee forex swap facility to attract foreign capital inflows. RBI has unveiled a US dollar-rupee forex swap facility for fresh FCNR (B) deposits mobilised by banks for a minimum tenor of 3 years and a maximum of 5 years.
  • ICICI Bank up by 7.12% was another top gainer on Nifty for the week - ICICI Bank traded higher along with other banking stocks post RBI’s introduction of US dollar-rupee forex swap facility for fresh FCNR (B) deposits to attract foreign capital inflows. Further, the foreign capital inflows are expected improve liquidity conditions in the banking system and deposit growth in FY27.

Top Losers 

  • Wipro down by 11.83% was the top loser of the week on Nifty - Wipro came under pressure along with other information technology stocks following the global tech sell-off. The global technology stocks suffered heavy losses amid concerns over elevated valuations of AI-focused stocks and sector’s growth outlook.
  • Hindalco Industries down by 9.24% was another top loser of the week on Nifty - Hindalco Industries traded lower along with other metal stocks amid weakness in commodity prices and concerns over higher-for-longer US interest rates.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 23,645.35 on June 12 and lowest level of 23,070.15 on June 8. On the last trading day, the Nifty closed at 23,622.90 with weekly gain of 256.20 points or 1.10 percent. For the coming week, 23,246.92 followed by 22,870.93 are likely to be good support levels for the Nifty, while the index may face resistance at 23,822.12 and further at 24,021.33 levels.

US Market

The U.S. markets traded mostly higher during the week after President Donald Trump said a peace deal with Iran could be reached as early as this weekend, raising hopes of easing geopolitical tensions.

Some of the major developments during the week are:  

Producer prices in U.S. jump 1.1% in May: The Labor Department said its producer price index for final demand shot up by 1.1 percent in May, matching a downwardly revised jump in April.

Jobless claims in U.S. rise in the week ended June 6: Initial jobless claims crept up to 229,000, an increase of 4,000 from the previous week's unrevised level of 225,000. 

U.S. consumer prices increase 0.5% in May: The Labor Department said its consumer price index rose by 0.5 percent in May after climbing by 0.6 percent in April. 

Existing home sales in U.S. surge in May: Existing home sales surged by 3.2 percent to an annual rate of 4.17 million in May after climbing by 0.8 percent to an upwardly revised rate of 4.04 million in April.

U.S. trade deficit narrows to $55.9 billion in April: The trade deficit shrank to $55.9 billion in April from a revised $56.6 billion in March.

European Market

European markets remained sluggish during the passing week, with investors closely following the news from the Middle East front and reacting to the European Central Bank's rate hike announcement.

Some of the major developments during the week are:

European Central Bank hikes interest rates for first time since 2023: The Governing Council, led by ECB President Christine Lagarde, hiked the benchmark rate - the deposit rate by 25 basis points to 2.25 percent. 

Italy industrial production rises for third month: Industrial output registered a monthly increase of 0.5 percent in April, slightly slower than the 0.6 percent rise in March. However, this was the third consecutive rise in production.

German industrial output rises: Industrial production expanded for first time in five months in April. Industrial output increased 0.4 percent on a monthly basis, in line with expectations but in contrast to the revised 0.1 percent fall in March.

Eurozone investor sentiment improves for second month: The investor sentiment index rose more-than-expected to -13.4 in June from -16.4 in May. The score was forecast to rise to -13.8.

Finland current account deficit widens in April: The current account gap widened to EUR 2.29 billion in April from EUR 0.5 billion in the corresponding month last year.

Asian Market

Asian markets traded in red during the passing week despite easing concerns over geopolitical tensions after U.S. President Donald Trump called off new military strikes on Iran and said a peace deal could be signed in a few days.

Some of the major developments during the week are:

Japan's industrial production rises in April: Japan’s industrial production rose 0.5% month-over-month in April 2026, below flash data of 0.8% but reversing from a 0.4% drop in the previous month.

Japan producer prices jump in May: Japan’s producer prices rose 6.3% y-o-y in May 2026, accelerating from an upwardly revised 5.3% increase in the prior month and topping market expectations of 5.5%.

China inflation steady at 1.2% in May: China’s annual inflation held steady at 1.2% in May 2026, unchanged from the previous month but slightly below market expectations of 1.3%.

China's exports surge in May: China’s exports surged 19.4% y-o-y to a record high of $376.78 billion in May 2026, far exceeding forecasts of 15% and accelerating sharply from April’s 14.1% rise.

South Korea GDP advances 1.8% in Q1: South Korea’s economy advanced by 1.8% Q-o-Q in the first quarter (Q1) of 2026, exceeding the preliminary estimate of 1.7%.
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