The US-Iran peace deal, with a formal signing in Switzerland on June 19, has done in one weekend what months of OPEC jawboning could not: collapsed the geopolitical risk premium embedded in crude. Brent sliding to $83.58 — down 4.3% — removes the cost-push tailwind that had pressured India's import bill, and today's WPI print at 12:00 IST (consensus 9.1% against a prior 8.3%) will reveal whether that relief arrived in time.

Domestically, the Friday session told an unambiguous demand story: Realty led at +3.53%, Financials at +3.15%, and even PSU Banks surged 2.71%, while DII inflows of Rs 4,225 crore absorbed FII selling of Rs 1,987 crore. The net positive flow of Rs 2,237 crore, paired with VIX retreating to 14.78, confirms that domestic institutions are building exposure into dips rather than exiting into strength.

The week's gravitational centre is the Fed — rate projections land Wednesday night. Until then, the rotation logic favours rate-sensitive domestics (Realty, private banks) over IT, which was the lone Friday laggard at -0.09%, reflecting margin anxiety more than demand risk. Crude's fall is the cleanest gift to the macro setup, but a WPI overshoot today would blunt it quickly.