Updates for markets close

By Bharath Rajeswaran

June 15 (Reuters) - Indian shares closed higher on Monday, tracking a global rally, as oil prices tumbled after the U.S. and Iran said they had reached an initial agreement to end the war and resume traffic through the Strait of Hormuz.

The two will sign a memorandum of understanding in Switzerland on Friday, said Pakistani Prime Minister Shehbaz ​Sharif, whose country served as a mediator in the negotiations.

"Now that the Iran war appears to be nearing an end, investors have a significant source of comfort," said Gaurav Bhandari, chief executive officer at Monarch Networth Capital.

The benchmark Nifty 50 .NSEI rose 0.98% to 23,853.90, while the BSE Sensex .BSESN added 0.97% to 76,264.33, gaining about 3% and 3.3%, respectively, in two sessions.

"Indian equities, in particular, could be set for a strong four-to-six months, provided monsoon risks recede," said Gaurav Bhandari, who expects the benchmark Nifty 50 to reach the 27,000-28,000 range by year-end. The index has lost 8.7% year-to-date.

India's 10-year bond yield fell and the rupee INR=IN gained 0.41% to 94.71 per dollar.

"With the RBI's recent measures helping stabilise the rupee, inflation remaining under control, the record $30 billion in foreign outflows in 2026 so far could start to reverse," Monarch's Bhandari said.

Fourteen of the 16 major sectors advanced. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 1.1% and 1.3%, respectively.

Infrastructure major Larsen & Toubro LART.NS, which has significant revenue exposure to the Middle East, gained 3%.

Asian markets .MIAPJ0000PUS jumped 2.7%, while Brent crude LCOc1 dropped 5.2% to about $82.8 a barrel, its lowest level since March. MKTS/GLOB

Lower oil prices are a positive for India, the world's third-largest oil importer, as they help ease pressure on inflation, the rupee and the country's trade deficit.

Oil-sensitive stocks rallied, with refiners BPCL BPCL.NS, HPCL HPCL.NS and Indian Oil IOC.NS, cement makers UltraTech Cement ULTC.NS, Ambuja Cements ABUJ.NS and ACC ACC.NS, tyre firms MRF MRF.NS, CEAT CEAT.NS and JK Tyre JKIN.NS, and airline IndiGo INGL.NS all advancing.

Aurobindo Pharma ARBN.NS fell 4.7% after the U.S. drug regulator flagged serious concerns at its unit's facility in Telangana.