Investors Gain Nearly ₹7.9 Lakh Crore
The sharp rally added substantial wealth for investors. The total market capitalisation of all BSE-listed companies increased by approximately ₹7.86 lakh crore during opening trade.
The market value of listed firms rose from ₹4,61,45,088.73 crore recorded on June 12 to ₹4,69,31,548.57 crore on June 15. The jump reflected widespread buying interest across sectors as investors responded positively to improving global developments and easing geopolitical risks.
Iran-US Peace Agreement Boosts Confidence
The primary trigger behind Monday's rally was the reported peace agreement between Washington and Tehran. According to Reuters, US President Donald Trump announced that both countries had agreed on a broad framework aimed at ending the four-month conflict in West Asia.
The agreement reportedly includes an immediate cessation of military operations and efforts to restore normal trade and transportation routes. Pakistan is said to have played a key role in facilitating discussions between the two nations.
Investors are now awaiting the formal signing of the agreement and closely tracking developments regarding the reopening of the Strait of Hormuz, one of the world's most critical oil shipping routes.
Rupee Strengthens Sharply Against Dollar
The positive global backdrop also supported the Indian currency. The rupee opened at 94.71 against the US dollar, strengthening by 39 paise from its previous close of 95.10.
Currency traders believe lower crude oil prices could reduce India's import bill while encouraging fresh foreign investment flows. The rupee's appreciation also surpassed the highs witnessed following the Reserve Bank of India's June 5 monetary policy announcement.
Oil Prices Retreat as Supply Concerns Ease
Crude oil prices fell significantly after fears of supply disruptions in the Middle East eased.
Brent crude futures for June delivery declined 3.5% to $83.79 per barrel. In broader trading, Brent crude was down 3.95% at $83.88 per barrel, while US West Texas Intermediate crude dropped 4.68% to $80.91 per barrel.
The decline reflects expectations that the reopening of the Strait of Hormuz could ensure smoother global energy supplies and reduce pressure on oil markets.
Broader Markets Outperform
The rally was not limited to benchmark indices. Broader markets also witnessed strong buying activity, with the Nifty MidCap index rising 1.4% and the Nifty SmallCap index gaining 1.7%.
Sector-wise, Nifty Realty, Nifty Auto and Nifty Financial Services led the gains, benefiting from improved economic outlook and stronger risk appetite. In contrast, defensive sectors such as Nifty Pharma and Nifty Healthcare traded lower.
Inflation Remains Within RBI Comfort Zone
Domestic macroeconomic data also remained in focus. India's retail inflation accelerated to 3.93% in May 2026 from 3.48% in April 2026, largely due to higher food prices.
Despite the increase, inflation remained below the Reserve Bank of India's medium-term target of 4% and comfortably within its mandated tolerance range of 2% to 6%. The May reading also marked the 16th consecutive month in which headline inflation stayed below the RBI's 4% target level.
Global Markets React Positively
The easing of geopolitical tensions had a visible impact across global asset classes.
Japanese government bond yields declined, with the 10-year yield falling 6 basis points to 2.575% and the 20-year yield dropping to 3.460%.
The US dollar weakened as demand for safe-haven assets moderated. The dollar index slipped 0.31% to 99.492, its lowest level since June 5.
Gold prices, meanwhile, moved higher amid expectations that easing geopolitical tensions and lower energy prices could support a more accommodative interest-rate environment. Spot gold rose 1.8% to $4,297.42 per ounce, while US August gold futures gained 1.9% to $4,318.10 per ounce.
Key Factors to Watch Ahead
While markets have welcomed the reported breakthrough between the US and Iran, investors remain focused on several key developments. The formal signing of the peace agreement, progress on reopening the Strait of Hormuz, foreign institutional investor activity and future negotiations regarding Iran's nuclear programme will likely influence market direction in the coming sessions.
For now, easing geopolitical concerns, lower oil prices, a stronger rupee and supportive global sentiment have provided a strong foundation for Indian equities to begin the week on a highly positive note.
