Indian equity benchmarks kicked off June on a firm note on Monday, with the BSE Sensex surging nearly 600 points and the Nifty50 climbing close to 185 points in early trade, even as Brent crude crossed $93 per barrel and geopolitical tensions in the Middle East kept global markets on edge. The resilience signals that domestic institutional buying and IT sector momentum are, for now, outweighing external headwinds.

Market Snapshot

The Sensex rose 0.8 per cent to touch an intraday high of 75,367, while the Nifty50 advanced 0.78 per cent to trade at 23,733. Adding to the bullish tone, India VIX — the market's fear gauge — declined more than 1 per cent to around 16, suggesting reduced near-term volatility expectations among traders.

IT Stocks Lead, FMCG Drags

Nifty IT emerged as the top sectoral gainer, rising around 2 per cent, while Nifty MidSmall IT & Telecom advanced more than 1 per cent. Media, chemicals, and metal stocks also traded in positive territory.

On the downside, FMCG stocks remained under pressure, with the Nifty FMCG index declining 0.57 per cent. Auto and healthcare indices also edged marginally lower. Among individual Nifty constituents, Hindustan Unilever was the top loser, falling 1.35 per cent, followed by Mahindra & Mahindra, which slipped 0.95 per cent. NTPC, Tata Consumer Products, Power Grid, and Bharat Electronics also traded lower, while Nestle India, ITC, and Sun Pharma declined up to 0.60 per cent.

Geopolitical Overhang: US Strikes on Iran

The gains come against a backdrop of fresh geopolitical turbulence. The US military carried out strikes over the weekend on Iranian radar and drone command-and-control sites in Goruk and Qeshm Island, according to official statements. US Central Command said in a post on X that the strikes were launched in response to what it described as 'aggressive Iranian actions', including the downing of a US MQ-1 drone that was reportedly 'operating over international waters.'

Reports also indicate that US President Donald Trump is considering modifying the terms of a proposed agreement with Iran to end the conflict, even as Tehran prepares to introduce new elements into negotiations. Last month, Trump had said he would 'soon decide' on a proposed deal to extend the ceasefire, though the two sides remained divided on core issues. This is the latest in a series of escalatory moves that have kept energy markets on high alert.

Oil Surge and Asian Markets

International benchmark Brent crude rose 2.63 per cent to $93.52 per barrel, while US West Texas Intermediate (WTI) crude gained more than 3 per cent to $90 per barrel — levels that historically weigh on India's import bill and current account deficit. Notably, Asian equities also traded mostly higher, with Nikkei, Hang Seng, and KOSPI jumping up to 4 per cent, providing a supportive regional cue.

How long Indian markets can sustain this divergence from rising crude will depend on whether the Iran-US situation escalates further and how quickly oil supply concerns feed into domestic inflation expectations.