India Stocks: Indian shares extend gains on US-Iran peace deal

HindalCo Industries

16/06/2026 11:08

Updates for markets close
By Bharath Rajeswaran

    June 16 (Reuters) - Indian shares closed higher on Tuesday, advancing for a third straight session, as a preliminary U.S.-Iran peace deal cooled oil prices and improved risk appetite.
The Nifty 50 .NSEI rose 0.57% to 23,989.15, while the BSE Sensex .BSESN added 0.71% to 76,808.48, gaining 3.6% and 4%, respectively, in three sessions.
Eleven of the 16 major sectors traded higher, while the broader small-cap .NIFSMCP100 and mid-cap .NIFMDCP100 indexes rose 0.4% each.

    Elsewhere in Asia, markets .MIAPJ0000PUS gained 0.8%, while Brent crude LCOc1 fell about 2% to $81.6 a barrel, a positive for oil-importing India. O/R
  
"The moderation in oil prices to about $82 a barrel, alongside India's stable macro fundamentals, steady interest rates and controlled inflation, augurs well for domestic markets after the year-to-date underperformance versus emerging-market peers," said Vinit Bolinjkar, head of research at Ventura Securities.
Foreign portfolio investors (FPI), who have sold a record $30.8 billion of Indian equities so far in 2026, turned net buyers on Monday after 13 straight sessions of selling, with inflows worth $21.2 million.
"Coordinated steps by the government and the central bank to support the rupee and draw foreign investors into bonds are positives for markets as they could lead to a reversal of foreign outflows," Bolinjkar added.
Among stocks, KFC India operator Devyani International DEVY.NS jumped 2.5% and Sapphire Foods SAPI.NS gained 5%. 

    The company said it has received a "no objection" letter from the NSE and a "no adverse observations" letter from BSE for its proposed merger with peer Sapphire Foods.
  
Index heavyweights HDFC Bank HDBK.NS and Reliance Industries RELI.NS rose 1% and 1.7%, respectively, leading benchmark gains.
Aluminium makers Hindalco Industries HALC.NS and National Aluminium NALU.NS fell 3.1% and 4.1%, tracking weaker global aluminium prices. MET/L
General Insurance Corporation of India GENA.NS dropped 8% after government announced a stake sale at 9.1% discount to its previous close.

 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema and Ronojoy Mazumdar)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))