The Friday cheer has caught on Dalal Street. The markets have broken the three-day losing streak and are up smartly, clocking significant gains. The Nifty 50 surged as much as 1% to 25,075.40, while the 30-pack BSE Sensex surged 1.15% to 82,296.21.

Jio Financial Services, Mahindra & Mahindra, Bharti Airtel, HDFC Life Insurance, and Power Grid Corporation are the top gainers in the Nifty 50. The small and midcaps too joined the party, up nearly a percent each

Here are the three reasons why markets are rallying-

Israel-Iran conflict easing

The markets sentiments turned bullish after the US President Donald Trump announced that he decide in the next two weeks whether or not to get involved in the Iran-Israel conflict. “Based on the fact that there’s a substantial chance of negotiations that may or may not take place with Iran in the near future, I will make my decision whether or not to go within the next two weeks,” said Press secretary Karoline Leavitt in a White House press briefing.

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Crude Oil prices drop

Also, the fall in crude oil prices added to the investors’ cheers. The Brent crude prices dropped significantly by almost $2 on Friday following Trump postponing its decision of involvement in the Israel-Iran conflict. The Brent futures decreased $1.89, or 2.4%, to $76.96 per barrel.

Foreign Institutional Investors (FIIs) continue buying

Furthermore, the FIIs have started putting money in the cash market once again. In the last three sessions, the FIIs have been net buyers. They have bought for a bit over Rs 3,300 crore in the cash segment. However, they are still net sellers as of date for June 2025. However, they had been net buyers for the past three months: March, April, and May.