Sensex, Nifty rebound sharply on US-Iran peace hopes, Brent crude dip
Synopsis
Indian markets snapped a painful two-week slide with a sharp Friday surge — Sensex up 1,695 points — as US-Iran peace signals and cheaper crude oil shifted the mood. With DIIs absorbing ₹24,000 crore against FII outflows of ₹15,300 crore, domestic money is holding the line, but the Fed's next move and Bank Nifty's 57,000 ceiling will decide whether this rebound has legs.
Key Takeaways
BSE Sensex closed up 1,695 points (2.30%) at 75,527 on 13 June , gaining 1.73% for the week.
Nifty 50 rose 1.99% on Friday to 23,622 , adding 1.10% over the week — snapping two consecutive weeks of losses.
FIIs sold a net ₹15,300 crore during the week; DIIs countered with net purchases of around ₹24,000 crore .
Financials and FMCG led sectoral gains; IT and metals lagged.
Nifty Midcap100 gained 0.98% ; Nifty Smallcap100 edged up 0.48% .
Key upcoming triggers: domestic WPI inflation , China industrial output , and the US Fed policy decision.
Indian equity benchmarks Sensex and Nifty snapped a two-week losing streak on 13 June, posting their strongest weekly gains in recent sessions as investor optimism around a potential US-Iran peace agreement and a pullback in Brent crude prices lifted market sentiment. The Nifty 50 surged 1.99% on the final trading day of the week to close at 23,622, adding 1.10% over the five sessions. The BSE Sensex closed up 1,695 points, or 2.30%, at 75,527, gaining 1.73% for the week.
Sectoral Performance
Financials emerged as the week's standout performers, with private banks leading the charge following favourable regulatory developments. A defensive rotation away from higher-beta growth segments reinforced the sector's outperformance. FMCG stocks also advanced, buoyed by expectations of sustained pricing power in a moderating inflation environment.
On the other side, the IT sector extended its decline, while metal stocks remained under pressure from softer commodity prices and muted demand expectations from China. Large-cap stocks outperformed the broader market, as mid- and small-cap segments witnessed profit booking after their recent strong rally. The Nifty Midcap100 gained 0.98% and the Nifty Smallcap100 edged up 0.48% during the week.
FII Selling and DII Support
Cumulative Foreign Institutional Investor (FII) selling during the week stood at approximately ₹15,300 crore, continuing to act as a key headwind for domestic equities. However, the pace of outflows moderated in the latter part of the week, offering some relief. Domestic Institutional Investors (DIIs) more than offset the foreign outflows, recording net inflows of around ₹24,000 crore, underscoring sustained confidence from home-grown funds.
Macro Signals and Bond Market
US bond yields eased during the week, though persistent inflationary pressures and resilient labour market data are keeping expectations of a delayed rate-cut cycle intact, according to analysts. Indian equities, analysts noted, 'traded in a range-bound manner with a mild negative bias, witnessing a modest recovery toward the end of the week.' Domestic bond yields also moderated, supported by Reserve Bank of India (RBI) policy measures that improved liquidity conditions and attracted foreign inflows into the debt market.
Technical Levels and What to Watch
The Nifty 50 faces a crucial resistance zone around 23,800, while immediate support is seen in the 23,550–23,500 range. In Bank Nifty, resistance is placed around 56,900–57,000, with support at 56,500–56,400. Market participants are closely watching domestic WPI inflation data, China's industrial output figures, and the upcoming US Federal Reserve policy decision — any of which could set the tone for the next directional move. A slowdown in FII selling or clearer visibility on the Fed's policy path could serve as the next meaningful trigger for domestic markets.
Point of View
000 crore is doing the heavy lifting that FIIs are withdrawing — a dynamic that cannot hold indefinitely if foreign outflows persist. The US-Iran peace narrative is sentiment-driven and reversible; crude oil relief is the more durable tailwind, but only if geopolitical de-escalation actually materialises. The IT sector's continued slide amid a broader rally is a structural warning: US demand softness is not a one-week story. With Nifty facing stiff resistance at 23,800 and the Fed still hawkish, this week's gains may reflect relief more than conviction.
NationPress
10 Aug 2026
Frequently Asked Questions
Why did Sensex and Nifty rise sharply this week?
The Sensex and Nifty rebounded on optimism around a potential US-Iran peace agreement and a decline in Brent crude prices, which lifted risk appetite after two consecutive weeks of losses. Strong buying by domestic institutional investors also supported the recovery.
How much did FIIs sell and DIIs buy this week?
Foreign Institutional Investors sold a net ₹15,300 crore during the week, though the pace of outflows moderated toward the end. Domestic Institutional Investors offset this with net purchases of around ₹24,000 crore.
Which sectors performed best and worst this week?
Financials — particularly private banks — and FMCG were the top performers. IT stocks extended their decline, and metal stocks fell on softer commodity prices and weak demand signals from China.
What are the key technical levels for Nifty and Bank Nifty?
Nifty 50 faces resistance around 23,800 and has immediate support in the 23,550–23,500 zone. Bank Nifty has resistance at 56,900–57,000 and support at 56,500–56,400, according to market participants.
What macroeconomic events should investors watch next?
Investors are monitoring domestic WPI inflation data, China's industrial output figures, and the upcoming US Federal Reserve policy decision. Clearer Fed guidance or a slowdown in FII selling could be the next major trigger for Indian markets.
