Stock markets closed higher on Tuesday, advancing for a third straight session, as a preliminary US-Iran peace deal cooled ​oil prices and improved risk appetite.

The Nifty 50 rose 0.57 per cent ‌to 23989.15, while the BSE Sensex added 0.71 per cent to 76808.48, gaining 3.6 per cent and 4 per cent, respectively, in three sessions. Eleven of the 16 major sectors traded higher, while the ​broader small-cap and mid-cap indices rose 0.4 per cent each.

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

“The moderation in oil prices, 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, 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.

Emerging boom

MSCI’s gauge of emerging equities rose 0.7 per cent, with technology shares SK hynix Inc and Taiwan Semiconductor Manufacturing Co, the biggest contributors to the advance. A gauge of emerging-market currencies was little changed.

“As the US and Iran will only sign their agreement on Friday, there remains some uncertainty around the final details of the deal,” said Rajeev De Mello, global macro portfolio manager at Gama Asset Management SA.

“Oil has declined from its highs but is still significantly higher than pre-war levels.”

De Mello sees most room for the stock rally to extend in countries like India that were hardest hit by higher oil prices.

Currency call

Lower oil prices supported the currencies of energy-importing nations, with South Korea’s won and the Philippine peso outperforming regional peers. The rupee traded near a one-month high while Indian bonds saw renewed foreign buying, with foreign funds making their biggest-ever one-day purchase on Monday.

China’s onshore yuan weakened for the first time in four days.

In emerging Europe, Hungary’s forint extended gains against the euro for a fourth day.