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Oil Drop After USIran Interim Deal Sends Indian Stocks Up and BSE Market Cap Back Above $5 Trillion

Falling crude has eased import and inflation pressures for India but signs the US central bank may raise rates and mixed foreign flows keep the rally fragile.

A man walks past a stock quotation board showing the  Nikkei stock prices outside a brokerage in Tokyo, Japan, June 16, 2026. REUTERS/Manami Yamada
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 17, 2026.  REUTERS/staff
A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 17, 2026. (AP Photo/Richard Drew)
A dealer walks past near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Thursday, June 18, 2026. (AP Photo/Lee Jin-man)

Overview

  • Markets rallied for a fifth straight session as an interim peace agreement between the United States and Iran reduced the risk of Strait of Hormuz disruption and pushed Brent and WTI down into the high $70s per barrel.
  • The BSE Sensex and NSE Nifty extended gains and the market capitalisation of BSE‑listed firms reclaimed about USD 5.03 trillion after investors’ wealth rose roughly Rs 22.78 lakh crore.
  • Banking and cyclical stocks led gains while export‑sensitive information‑technology names fell after the US Federal Reserve signalled it may raise interest rates later this year, which raised borrowing‑cost concerns for global clients.
  • Foreign institutional investor activity stayed uneven, with documented net selling of about Rs 749.18 crore on one session even as domestic funds and spot buyers supported the advance.
  • The peace deal is expected to speed the return of Iranian barrels to world markets and so lower fuel costs for India, a shift that can ease inflation and the current‑account gap but leaves Indian assets sensitive to oil moves and US rate guidance.