Sensex up 600 pts, Nifty above 24,900 as IT, oil & gas stocks gain amid Middle East conflict

SBI Life Insurance, ONCG, Cipla, Power Grid Corp, and HDFC Life were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex traded firmly in the green in the morning on Monday, June 16, managing to break their two-day losing streak despite escalating Israel-Iran tensions. A sharp rally in IT and oil & gas stocks lent support, while the broader market traded little changed to underperform the frontline indices.

At about 11 am, the Sensex was up 612.34 points or 0.75 percent at 81,730.94, and the Nifty was up 197.85 points or 0.80 percent at 24,916.45. About 1239 shares advanced, 2111 shares declined, and 174 shares remained unchanged.

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"Looking ahead, markets are likely to remain volatile amid ongoing geopolitical uncertainty and crucial central bank meetings. The U.S. Federal Reserve’s upcoming policy decision will be closely tracked, as market participants look for clarity on the timing and magnitude of potential rate cuts, especially in light of mixed economic signals. Domestically, the focus will remain on the progress of the monsoon, crude oil price trends, WPI inflation data, and FII activity," Ajit Mishra of Religare Broking said.

Sectoral trends on the NSE were largely positive. Nifty IT led the gains with a 1.06 percent rise, followed by Nifty Infra, Oil & Gas, and Metal, which gained 0.72 percent, 0.60 percent, and 0.46 percent, respectively. The FMCG and Private Bank indices also advanced, up 0.18 percent and 0.41 percent. Meanwhile, Nifty Bank edged up 0.23 percent, and the Midcap and Realty indices posted modest gains. On the flip side, PSU Bank slipped 0.58 percent, and Pharma, Media, and Auto indices saw marginal losses. The India VIX declined 2.52 percent to 14.70, signaling reduced market volatility.

Tata Motors, India's largest electric car manufacturer, slid as much as 5 percent after Jaguar Land Rover (JLR), its UK-based luxury arm, flagged weak free cash flow expectations and a slew of macro risks in its latest investor presentation. JLR said it expects free cash flow to be “close to zero” in FY26, even as it remains committed to its investment plans and aims to maintain EBIT margins in the range of 5–7 percent.

Shares of Indian Hotels Company Limited (IHCL) climbed over a percent on June 16 after Jefferies reiterated its bullish view, citing the company’s strong FY26 guidance and multiple growth levers that support its long-term outlook. With a target price of Rs 980 per share, the international brokerage forecasts an upside potential of 33.33 percent from the last close of Rs 735 on the NSE.

Also read: Oil extends gain as Israel-Iran conflict stokes supply concerns

India's largest drugmaker, Sun Pharmaceutical Industries Ltd.'s shares slipped on Monday, June 16, after the US Food and Drug Administration (US FDA) issued eight observations on the pharma player's Halol manufacturing facility in Gujarat. The inspection concluded with the issuance of a Form 483 containing eight observations, pointing to possible procedural or documentation issues requiring corrective action.

Technically, the Nifty has re-entered its consolidation range, and a decisive move beyond the 24,400–25,200 zone will be required to establish the next directional trend. In the event of a breakdown, the 24,000 level is expected to act as a crucial support, whereas a breakout above 25,200 could trigger a sustained rally toward the 25,600 mark.

"Nifty Bank is approaching its immediate support at 55,000, a key psychological level. A breach below this zone could open further downside risk. Resistance is capped at 56,000, and only a sustained close above this level may reignite bullish momentum," Om Mehra of SAMCO Securities said.

SBI Life Insurance, ONCG, Cipla, Power Grid Corp, and HDFC Life were the top gainers on the Nifty. Laggards on the index included Tata Motors, Dr Reddy's, Jio Financial Services, Axis Bank, and SBI.

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