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12.06.202604:23:20UTC+00Sensex Rebounds as Oil Prices Fall

India’s BSE Sensex climbed about 1.2% to 74,697 at the open on Friday, rebounding from the previous session’s losses and touching a two-week high. The advance was driven by easing geopolitical tensions in the Middle East, which pushed oil prices lower and improved risk sentiment.

The rally followed a sharp pullback in crude prices after US President Donald Trump indicated that Washington and Tehran could reach a peace agreement as early as this weekend and potentially reopen the Strait of Hormuz.

Despite the upbeat tone, foreign portfolio investors remained net sellers, unloading USD 207.52 million in domestic equities on Thursday. This brought year-to-date net outflows to a record USD 30.6 billion.

Among early movers, MTAR gained 10.7%, Netweb rose 6.3%, HDFC advanced 1.9%, and Aegis added 2.0%.

On the macroeconomic front, investors are awaiting India’s May inflation data due later in the day, with the annual rate forecast to accelerate to 4.0% from 3.48% in April.

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