Sensex Nears 77,000, Nifty Above 24,000 as Markets Rally on Easing Geopolitical Tensions
Indian markets extended gains for a third day, driven by global optimism over a US-Iran peace deal and declining crude oil prices, with attention now turning to upcoming global central bank decisions.
The story
Indian equity benchmarks continued their upward trajectory, with the Sensex closing up 544.15 points (0.71%) at 76,808.48 and the Nifty 50 climbing 135.25 points (0.57%) to 23,989.15 on June 16, 2026. This marks a third consecutive session of gains, with both indices rallying approximately 4% over the period.
The positive sentiment was largely fueled by easing geopolitical tensions following a US-Iran agreement to reopen the Strait of Hormuz, which pushed Brent crude prices below $83 per barrel. Foreign Institutional Investors (FIIs) turned net buyers on June 15th, recording an inflow of ₹200.05 crore, after 13 consecutive selling sessions, though they were net sellers of ₹749.18 crore on June 16th.
Domestic Institutional Investors (DIIs) remained net buyers, with an inflow of ₹3,189.26 crore on June 15th and a marginal ₹0.06 crore on June 16th. Sectorally, IT, FMCG, Realty, and Oil & Gas stocks showed strength, while metals, healthcare, and pharma sectors faced pressure.
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 23,989.15 | +135.25 (+0.57%) |
| Sensex | 76,808.48 | +544.15 (+0.71%) |
| Bank Nifty | 57,297.15 | +98.35 (+0.17%) |
| USD/INR | 94.53 | -0.05 (-0.05%) |
| India 10Y yield | 6.863% | -0.009 (-0.13%) |
| India VIX | 13.36 | -0.98 (-6.89%) |
Flows & data
| Item | Reading | Read |
|---|---|---|
| FII Net Flow | -₹749.18 Cr (June 16, 2026) | Foreign Institutional Investors were net sellers in the cash segment. |
| DII Net Flow | +₹0.06 Cr (June 16, 2026) | Domestic Institutional Investors were marginal net buyers in the cash segment. |
| FII Net Flow | +₹200.05 Cr (June 15, 2026) | Foreign Institutional Investors turned net buyers after 13 selling sessions. |
| DII Net Flow | +₹3,189.26 Cr (June 15, 2026) | Domestic Institutional Investors continued to be significant net buyers. |
| WPI Inflation | 9.68% (May 2026) | Wholesale Price Index inflation reached a series high. |
| Trade Deficit | $28.2 billion (May 2026) | Merchandise imports significantly outpaced exports. |
IPOs & the primary market
India's primary market is seeing renewed activity with several IPOs. CMR Green Technologies' ₹631 crore IPO was oversubscribed 127 times, indicating strong investor demand.
Hexagon Nutrition's mainboard IPO, which opened from June 5-9, aimed to raise ₹138.87 crore. Looking ahead, insurtech firm Turtlemint Fintech Solutions and Advit Jewels are slated to launch their public issues on June 19 and June 23, respectively.
The country's largest stock exchange, NSE, is also expected to file its preliminary papers with SEBI this week. In the SME segment, Liotech Industries, Leapfrog Engineering Services, Diksha Polymers, and Clay Craft India have IPOs opening from June 17-19, with listings expected on June 24. The robust pipeline includes 236 mainboard IPO draft papers as of May 2026, with many awaiting regulatory observations.
Valuation watch — India & global
Indian equities continue to present a nuanced valuation picture. While the Nifty's Price-to-Earnings (PE) ratio of 22.75 times in early 2026 was below its five-year average of 24.51, suggesting some moderation relative to its own history, it still commands a premium over most emerging Asian markets.
Analysts note that India remains a "frightfully expensive market," with growth-oriented stocks often trading at 50x to 100x PE multiples. This elevated valuation, coupled with slower growth prospects, is cited as a reason for foreign institutional investor exits. Globally, an easing of geopolitical tensions and declining crude oil prices have improved risk sentiment, yet the long-term valuation concerns persist, particularly in markets where growth expectations may not fully justify current multiples.
Monsoon watch
The southwest monsoon has advanced into parts of Maharashtra and Andhra Pradesh, following its onset over Kerala on June 4. However, the India Meteorological Department (IMD) has projected seasonal rainfall at 90% of the Long Period Average (LPA), with a 60% probability of deficient rainfall, and declared El Niño conditions on June 11.
Kharif sowing has begun slowly, with 7.25 million hectares planted by June 5, which is about 200,000 hectares less than the same period last year. Early soil moisture deficits have emerged in several states, including Odisha, Chhattisgarh, and Maharashtra, raising concerns for agricultural output and rural demand. Very heavy rainfall is expected over parts of sub-Himalayan West Bengal and Sikkim on June 16th and 17th.
What we'll be watching
- The US central bank's upcoming rate decision and commentary.
- Turtlemint Fintech Solutions IPO opens on June 19.
- Advit Jewels IPO opens on June 23.
- NSE is expected to file its preliminary papers with SEBI this week.
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