Stock Market Update: Nifty Surpasses 24,000 Amid Iran-US Peace Agreement

The stock markets are experiencing a positive response to the Iran-US peace agreement, with Nifty surpassing the 24,000 mark. Despite an initial surge, profit booking led to a correction in the indices. Crude oil prices are at a three-month low, contributing to market optimism. Dr. VK Vijayakumar from Geojit Investments highlights the dual impact of declining crude prices and concerns over monsoon deficits. The market is also seeing a tapering of FII outflows, suggesting potential resilience ahead. Read on for a detailed analysis of these trends.

By Narendra Chaudhary Jun 17, 2026, 09:48 IST

Market Overview

The stock markets are reacting positively to the recent peace agreement between Iran and the US, with the Nifty index opening above the 24,000 mark on Wednesday. The Sensex also started strong, gaining over 240 points compared to its previous close. However, by 9:20 AM, the benchmark indices experienced a correction, with the Sensex dropping by 200 points as investors engaged in profit-taking. At this point, the Sensex stood at 76,817.49, reflecting a slight increase of 9.01 points or 0.01%, while the Nifty was at 24,007.85, up by 4.85 points or 0.02%. Early trading indicated a flat start for domestic equities, with GIFT Nifty trading at 24,000, just 6 points higher than the previous close.

Crude oil prices have been favorable for the stock markets, currently hovering near a three-month low, having decreased by 16%. Brent crude is trading below $80 per barrel after a significant drop of 15%, while the US benchmark, West Texas Intermediate, is close to $77 per barrel.

In the Asian markets, mixed trading patterns were observed, influenced by rising tensions between the US and Iran. The MSCI's broadest index of Asia-Pacific shares outside Japan fell by approximately 0.3%, while Japan's Nikkei 225 bucked the trend, rising by 0.4%.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted two key factors likely to impact market trends in the near future: one positive and one negative. The positive aspect is the significant and steady decline in crude prices, with Brent crude dropping around 16% in the last five days to about $79, alleviating concerns over a rising balance of payments deficit in India. Conversely, the negative factor is the deficient monsoon, raising worries about food inflation. However, there is hope that the monsoon may improve in the coming days, as has been the case in previous years, which could ease these concerns.

From a market perspective, another encouraging trend is the reduction in Foreign Institutional Investor (FII) outflows. This trend is expected to persist, especially as the rupee continues to strengthen, potentially leading to further appreciation. The sharp decline in Brent crude to $79, coupled with expectations of substantial capital inflows into India through the FCNR B deposit route, could enhance the rupee's value, discouraging FIIs from selling and possibly prompting them to become buyers in anticipation of further rupee appreciation. This scenario could provide additional resilience to the market.