Indian shares extend gains on US-Iran peace deal

Indian shares closed higher on Tuesday, advancing for a third straight session, as a preliminary U.S.-Iran peace deal cooled oil prices and improved risk appetite.

The Nifty 50 rose 0.57% to 23,989.15, while the BSE Sensex added 0.71% to 76,808.48, gaining 3.6% and 4%, respectively, in three sessions.

Eleven of the 16 major sectors traded higher, while the broader small-cap and mid-cap indexes rose 0.4% each.

Elsewhere in Asia, markets gained 0.8%, while Brent crude fell about 2% to $81.6 a barrel, a positive for oil-importing India.

“The moderation in oil prices to about $82 a barrel, alongside India’s stable macro fundamentals, steady interest rates and controlled inflation, augurs well for domestic markets after the year-to-date underperformance versus emerging-market peers,” said Vinit Bolinjkar, head of research at Ventura Securities.

Foreign portfolio investors (FPI), who have sold a record $30.8 billion of Indian equities so far in 2026, turned net buyers on Monday after 13 straight sessions of selling, with inflows worth $21.2 million.

“Coordinated steps by the government and the central bank to support the rupee and draw foreign investors into bonds are positives for markets as they could lead to a reversal of foreign outflows,” Bolinjkar added.

Among stocks, KFC India operator Devyani International jumped 2.5% and Sapphire Foods gained 5%.

The company said it has received a “no objection” letter from the NSE and a “no adverse observations” letter from BSE for its proposed merger with peer Sapphire Foods.

Index heavyweights HDFC Bank and Reliance Industries rose 1% and 1.7%, respectively, leading benchmark gains.

Aluminium makers Hindalco Industries and National Aluminium fell 3.1% and 4.1%, tracking weaker global aluminium prices.

General Insurance Corporation of India dropped 8% after government announced a stake sale at 9.1% discount to its previous close.