Last Updated on June 12, 2026 5:44 pm by BIZNAMA NEWS
By Our Business Correspondent
Indian equities staged a powerful rally on Friday, buoyed by easing US–Iran tensions and renewed optimism over a potential peace deal. Investor sentiment improved further as Brent crude prices retreated to the $87 per barrel mark, alleviating concerns over imported inflation. Buying was broad-based, with all major sectoral indices closing in the green. Private banks and financial stocks led the charge, helping the Nifty 50 reclaim the 23,600 level.
The S&P BSE Sensex soared 1,695.40 points, or 2.30%, to settle at 75,527.95, while the Nifty 50 advanced 461.30 points, or 1.99%, to 23,622.90. Heavyweights Larsen & Toubro (up 4.87%), HDFC Bank (up 3.67%), and Reliance Industries (up 2.64%) provided the strongest lift to the benchmark indices.
Broader Market Outperformance
The rally was not confined to frontline stocks. The BSE 150 MidCap Index surged 2.37%, while the BSE 250 SmallCap Index climbed 2.60%, underscoring strong participation across the market spectrum. Market breadth remained robust, with 3,222 shares advancing against 1,046 declines on the BSE.
Volatility cooled significantly, with the NSE’s India VIX slipping 5.73% to 14.72, suggesting investors expect calmer trading conditions in the near term.
Inflation Data and Macro Indicators
On the macroeconomic front, retail inflation edged higher. The Consumer Price Index (CPI) rose to 3.93% in May 2026, up from 3.48% in April, marking the highest reading so far this year. Food inflation, measured by the Consumer Food Price Index (CFPI), accelerated to 4.78% from 4.20% in the previous month.
Bond yields softened, with the 10-year benchmark government security yield slipping to 6.870% from 6.897% in the prior session. The rupee strengthened modestly against the dollar, hovering at 95.19 compared with 95.85 previously.
In commodities, MCX Gold futures for August settlement rose 1.05% to ₹150,499, while Brent crude for July delivery dropped $3.27, or 3.62%, to $87.11 a barrel. Globally, the US Dollar Index eased 0.13% to 99.71, and the US 10-year bond yield declined to 4.452%.
Global Cues Lift Sentiment
Global markets provided a supportive backdrop. US Dow Jones futures pointed to a positive opening, while European indices traded sharply higher on hopes of a breakthrough in US–Iran negotiations. Asian markets also closed in the green after US President Donald Trump indicated that Washington and Tehran were close to signing a peace deal.
Wall Street had already rallied overnight after Trump called off planned strikes on Iran. The S&P 500 gained 1.75% to 7,394.30, the Nasdaq Composite surged 2.54% to 25,809.66, and the Dow Jones Industrial Average advanced 929.97 points, or 1.86%, to 50,848.75.
Adding to the excitement, investors are closely watching the landmark Nasdaq debut of SpaceX. The company will list under the ticker SPCX at $135 per share, implying a valuation of $1.77 trillion. With plans to raise $75 billion through the sale of 555.6 million shares, the offering is set to become the largest IPO in history, surpassing Alibaba’s $22 billion listing in 2014.
New Listings and Corporate Developments
Back home, Hexagon Nutrition made a strong debut on the BSE, closing at ₹50.39, an 11.98% premium over its issue price of ₹45. The stock opened at ₹48 and touched a high of ₹50.39, with over 14.2 lakh shares traded.
Several corporate announcements kept individual counters in focus:
- Nestlé India fell 3.23% after reports of a regulatory notice over alleged insect detection in Maggi.
- Tata Motors Passenger Vehicles gained 4.02% after announcing price hikes of up to 1.5% across ICE and EV models effective July 1.
- Jayant Infratech surged 17.24% on winning a ₹16.54 crore railway electrification contract.
- GNG Electronics rose 3.44% after its promoter reduced stake to comply with minimum public shareholding norms.
- PCBL Chemical advanced 4.43% after commissioning a new specialty production line at its Mundra plant.
- Hitachi Energy India added 3.31% after unveiling a ₹2,000 crore investment plan for a new transformer factory in Vadodara.
- Ratnaveer Precision Engineering climbed 2.33% after approving a rights issue worth up to ₹330 crore.
- Dabur India edged up 1.14% despite receiving a USFDA import alert for part of its Silvassa facility.
- AVG Logistics jumped 6.05% after securing a long-term transport contract with Haldiram Nagpur.
- Gujarat Inject Kerala rose 3.75% on winning a ₹14.49 crore solar panel order.
- Concord Biotech gained 1.02% after successfully completing a regulatory inspection by Brazil’s ANVISA.
Outlook
Friday’s rally underscored the resilience of Indian equities amid global uncertainty. Cooling crude prices, easing geopolitical risks, and strong corporate activity provided the perfect mix for a broad-based surge. However, rising inflation remains a concern, and investors will closely monitor upcoming macro data and central bank commentary.
With global markets buoyant and domestic fundamentals supportive, analysts expect momentum to continue in the near term, though valuations in certain pockets may warrant caution.