Nifty, Sensex post nearly 1.7 pc weekly gain over hopes of US-Iran peace pact

Indian equity indices recorded a second straight week of solid advances, buoyed by optimism over an easing geopolitical climate after the US‑Iran détente and a slide in Brent crude prices.

Nifty rose 1.65 % for the week but slipped 0.64 % on the final trading session, closing at 24,013. Sensex fell 607 points, or 0.78 %, to 76,802, after gaining 1.69 % over the week.

On the last day of the week, domestic markets moved sideways, mainly hit by a sharp sell‑off in IT stocks after three straight sessions of benchmark gains.

Brent crude, which had dropped below $80 a barrel on hopes of a US‑Iran peace deal, saw its decline stall after the peace talks were abruptly cancelled and traders took profits toward week‑end.

The rupee strengthened by about 79 paise during the week, trading near 94.35 to the dollar. Analysts said the improved geopolitical backdrop should support market sentiment in the coming week.

A 14‑point memorandum of understanding between the US and Iran signed during the week called for reopening the Strait of Hormuz, lifting the naval blockade and restoring commercial shipping.

On the sectoral side, consumer durables, real estate, pharma and defence stood out as gainers. The defence sector jumped 6.6 % over the week, driven by strong fundamentals, market participants noted.

IT was the biggest loser, with the Nifty IT index tumbling 6.5 % after Accenture cut its FY26 constant‑currency revenue growth guidance and gave a weaker‑than‑expected outlook.

The US Federal Reserve kept a cautious, data‑dependent stance, offering little forward guidance and reinforcing a higher‑for‑longer rates outlook.

With the Reserve Bank of India also staying cautious, falling crude oil prices and progress in trade talks with the UK and the US could help the outlook improve gradually, though clearer policy direction may need one or two more policy reviews, analysts said.

Broader market indexes outperformed the benchmarks, as the Nifty Midcap100 added 2.62 % and the Nifty Smallcap100 surged 3.23 % during the week.

Investors are watching India’s monsoon rains closely; cumulative June rainfall so far is about 38 % below normal amid lingering El Niño conditions.

Any further delay in the monsoon’s advance could raise worries over kharif sowing, food inflation and rural demand, market participants said.

Upcoming India PMI and credit growth numbers, together with US PCE and GDP releases, are among the key data points that will steer market direction in the near term.