Closing Bell: Nifty 50 Ends Above 23,200; Bank Nifty Surges Over 2% as RBI Measures Lift Banking Stocks

Market Update at 04:04 PM: Indian benchmark indices ended higher on Tuesday, June 9, with Banking stocks leading the rally after the Reserve Bank of India (RBI) unveiled measures aimed at improving foreign currency liquidity and reducing funding costs. Sentiment was further supported by easing geopolitical tensions after Iran and Israel announced a halt to hostilities following an appeal from U.S. President Donald Trump, although Tehran warned it could resume attacks if Israel continued strikes against Hezbollah in Lebanon.

The Nifty 50 opened 136 points higher but failed to sustain its early gains as selling pressure dragged the index to an Intraday low of 23,104.45. Buying interest emerged in the second half of the session, resulting in a sharp V-shaped recovery. The benchmark climbed to an intraday high of 23,279.40 before settling at 23,242.10, up 119.10 points or 0.52 per cent.

The Sensex also finished higher, gaining 394.50 points or 0.54 per cent to close at 73,918.76. The Bank Nifty outperformed the broader market, ending more than 2 per cent higher, while India VIX, the market's fear gauge, declined 8.5 per cent, indicating improved investor confidence.

Banking stocks witnessed strong buying after the RBI introduced a special framework for Foreign Currency Non-Resident (FCNR(B)) deposits and External Commercial Borrowings (ECBs). The central bank expanded the ECB framework by allowing all banks to raise foreign currency borrowings and introduced a strategic swap facility that could lower hedging costs by around 1.5 per cent.

The RBI also clarified that banks can extend loans against FCNR(B) deposits, potentially improving returns for non-resident depositors. Market participants expect the measures to attract between USD 50 billion and USD 70 billion through ECBs and FCNR(B) deposits. The announcement was particularly beneficial for banks with high loan-to-deposit ratios, including HDFC Bank, as it provides an additional funding avenue to support future credit growth.

Brent crude oil steadied near USD 91 per barrel after giving up most of the previous session's gains. The easing of tensions between Iran and Israel improved hopes for diplomatic progress and reduced immediate concerns over disruptions to global energy supplies.

Sectoral performance remained largely positive, with eight of the 11 major sectoral indices ending in the green. Broader markets outperformed the benchmarks, as the Nifty Midcap 100 index advanced 1.35 per cent and the Nifty Smallcap 100 index gained 1.69 per cent.

The Nifty PSU Bank index emerged as the top-performing sector, rising 3.63 per cent with all constituent stocks closing higher. The index recorded its strongest gain in the last two months. In contrast, the Nifty IT index declined 0.48 per cent, extending its losing streak to five consecutive trading sessions.

Among individual stocks, JNK India surged 15.70 per cent after securing an order in the UAE valued between Rs 1 billion and Rs 3 billion. Panacea Biotech gained 9.92 per cent following the launch of the Denstar project aimed at developing a dengue vaccine specifically for African markets.

NLC India fell 2.38 per cent after the Government of India announced plans to sell up to a 3 per cent stake through an offer-for-sale at a floor price of Rs 303 per share, representing a discount of about 10 per cent to the previous closing price. Grasim Industries rose 1.49 per cent after approving a capital expenditure plan worth Rs 3,094 crore to expand its Lyocell manufacturing capacity in Karnataka.

The biggest contributors to the Nifty 50's gains were ICICI Bank, which added 38.65 points, followed by State Bank of India with 18.66 points and Axis Bank with 15.21 points. On the downside, Bharti Airtel was the largest drag on the index, shaving off 9.46 points. Titan Company and NTPC also weighed on the benchmark, reducing it by 7.88 points and 6.97 points, respectively.

Market breadth remained favourable on the NSE. Of the 3,396 stocks traded, 2,380 advanced, 904 declined and 112 remained unchanged. A total of 78 stocks touched their 52-week highs, while 51 stocks hit their 52-week lows. Additionally, 100 stocks were locked in Upper Circuits and 89 stocks were locked in Lower Circuits, reflecting strong stock-specific activity across the market.

Market Update at 2:24 PM: Indian equity benchmark indices traded with modest gains during the afternoon session on June 9 as investors continued to monitor developments surrounding the ceasefire between the U.S. and Iran.

At around 2:15 PM, the Nifty 50 was trading 79.85 points, or 0.35 per cent, higher at 23,202.85, while the Sensex advanced 242.24 points, or 0.33 per cent, to 73,766.50.

Among the Nifty 50 constituents, Titan, NTPC and Eternal remained the top laggards, limiting gains in the benchmark index despite strength across broader markets.

The broader market continued to outperform the frontline indices. The Nifty MidCap index rose 0.94 per cent, while the Nifty SmallCap index gained 1.07 per cent, reflecting sustained buying interest in mid- and Small-Cap stocks.

Sectorally, Real Estate and financial stocks led the market higher. The Nifty Realty, Nifty Financial Services and Nifty Bank indices were among the top-performing sectors. On the other hand, the Nifty IT index traded in the red and emerged as the weakest sectoral performer.

Investor sentiment remained influenced by geopolitical developments in the Middle East. Iran halted its strikes on Israel but warned that it could resume military action if Israel continued operations in Lebanon. Meanwhile, market participants continued to assess the status and durability of the ceasefire between the U.S. and Iran.

Market Update at 12:34 PM: Indian equity benchmark indices traded in positive territory during the afternoon session on Tuesday as investors continued to monitor developments surrounding the ceasefire situation involving the U.S. and Iran.

At 12:28 PM, the Nifty 50 was up 80.90 points, or 0.35 per cent, at 23,203.90. The Sensex gained 230.76 points, or 0.31 per cent, to trade at 73,755.02.

Among the Nifty 50 constituents, Titan, NTPC and Eternal remained among the Top Losers, limiting gains in the benchmark index despite strength in several other sectors.

Broader markets continued to outperform the frontline indices. The Nifty MidCap index advanced 1.07 per cent, while the Nifty SmallCap index rose 1.09 per cent, indicating sustained buying interest in the broader market.

Sectorally, the Nifty Realty, Nifty Financial Services and Nifty Bank indices led the gains. However, the Nifty IT index remained the key underperformer and traded in the red, bucking the broader market trend.

Investor sentiment remained cautious amid ongoing geopolitical developments in the Middle East. Iran halted its strikes on Israel but warned that Tehran could resume military action if Israel continued its operations in Lebanon. Meanwhile, uncertainty persisted over the status and durability of the ceasefire between the U.S. and Iran.

Market Update at 09:30 AM: Indian benchmark equity indices opened on a positive note on Tuesday, supported by gains in information technology and automobile stocks, while investors closely monitored developments related to the ceasefire between the U.S. and Iran.

At 9:18 AM, the Nifty 50 was trading 109 points, or 0.47 per cent, higher at 23,232.00. The Sensex also advanced 351.34 points, or 0.48 per cent, to 73,875.60.

Among the Nifty 50 constituents, Trent, InterGlobe Aviation and Grasim Industries emerged as the Top Gainers in early trade, helping lift the broader market sentiment.

The positive momentum extended beyond the benchmark indices. The Nifty MidCap index was trading 0.83 per cent higher, while the Nifty SmallCap index gained 0.63 per cent, indicating broad-based buying across market segments.

On the sectoral front, the Nifty Realty index led the gains, followed by the Nifty Financial Services and Nifty Bank indices. Strength in these sectors contributed significantly to the market's upward movement during the opening session.

Pre-Market Update at 7:40 AM: Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a subdued note on Tuesday, June 9, amid mixed global cues. Although geopolitical tensions in the Middle East showed signs of easing overnight, investors remain cautious due to elevated crude oil prices and persistent global uncertainty.

Gift Nifty was trading near the 23,130 level, around 44 points below the previous close of Nifty futures, indicating a muted start for domestic equities. Asian markets advanced in early trade, while Wall Street ended mixed on Monday, supported by gains in Semiconductor stocks.

Investor sentiment improved slightly after Iran and Israel indicated that hostilities had paused following an appeal from U.S. President Donald Trump. However, Iran warned that it would respond if Israel resumes strikes against Hezbollah in Lebanon. Iranian President Masoud Pezeshkian also reiterated that Tehran remains open to negotiations despite the recent exchange of missile attacks with Israel.

In another development, a U.S. federal judge struck down the USD 100,000 fee imposed on new H-1B visas by the Trump administration, ruling that the charge amounted to an unauthorized Tax that had not been approved by Congress. The U.S. dollar remained close to a two-month high, with the dollar index holding at 100.03 after touching 100.21 during the previous session.

Gold prices declined for a third straight session as rising U.S. Treasury yields reduced the appeal of the precious metal. Spot gold slipped 0.2 per cent to USD 4,319.98 per ounce, while spot silver fell 0.6 per cent to USD 67.84 per ounce. Crude oil prices edged higher as markets continued to monitor developments in the Middle East. Brent crude futures gained 0.14 per cent to USD 94.38 per barrel, while U.S. West Texas Intermediate crude rose 0.12 per cent to USD 91.41 per barrel.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 0.64, indicating a cautious market undertone. On the put side, significant open interest concentration was seen at the 23,000 strike, making it an important support level. On the call side, fresh open interest addition was witnessed at the 23,200 strike, while the highest open interest among nearby out-of-the-money strikes was concentrated at 23,500 and 24,000.

Technically, the 23,000-23,100 zone remains a critical support area for the Nifty 50. A decisive break below this range could trigger further weakness towards 22,700 and subsequently 22,550. On the upside, immediate resistance is placed around 23,350, while the key hurdle lies in the 23,550-23,600 zone. A sustained move above this range would be required to revive bullish momentum. Until then, the broader trend remains weak with volatility expected to remain elevated ahead of the weekly expiry.

Among stock-specific developments, NLC India will remain in focus after the Government of India announced plans to sell up to a 3 per cent stake through an offer-for-sale. The floor price has been fixed at Rs 303 per share. The issue opens for non-retail investors on June 9 and retail investors on June 10.

IRB Infrastructure Developers reported a 25 per cent year-on-year rise in toll revenue to Rs 843 crore in May, compared with Rs 672 crore a year earlier. Panacea Biotec launched the DENSTAR project to support licensing and global adoption of its dengue vaccine, DengiAll, with funding support from the EU-backed GH EDCTP3 JU programme.

Grasim Industries approved an investment of Rs 3,094 crore for Phase II expansion of its Lyocell manufacturing capacity at Harihar, Karnataka, adding 110 KTPA capacity. HCL Technologies launched an AI Innovation Zone with Google Cloud in California to help enterprises scale artificial intelligence applications.

Rail Vikas Nigam received a Letter of Acceptance for an EPC contract worth Rs 221.33 crore from South East Central Railway. JNK India secured a large international order valued between Rs 100 crore and Rs 300 crore from CC7 Emirates Engineering Solutions LLC, UAE, for waste gas handling systems.

JSW Energy commissioned its wind blade manufacturing facility at Halol, Gujarat, strengthening its vertical integration strategy in the renewable energy business. Bharti Airtel and Vodafone Idea may see investor attention after the Bombay High Court struck down the Centre's one-time spectrum charge, providing regulatory relief to telecom operators.

Amber Enterprises India and Kaynes Technologies remain under the futures and options ban list for June 9.

Foreign Institutional Investors (FIIs) remained net sellers on June 9, offloading equities worth Rs 5,555.67 crore. Domestic Institutional Investors (DIIs) provided support by purchasing shares worth Rs 5,165.24 crore.

Indian equity benchmarks ended sharply lower on Monday amid renewed Middle East tensions, rising crude oil prices and concerns over a potential U.S. interest rate hike. The Sensex declined 719.08 points, or 0.97 per cent, to close at 73,524.26, while the Nifty 50 fell 243.70 points, or 1.04 per cent, to settle at 23,123.00.

U.S. markets closed on a mixed note on Monday. The Dow Jones Industrial Average fell 80.77 points, or 0.16 per cent, to 50,786.01. The S&P 500 rose 21.99 points, or 0.30 per cent, to 7,405.73, while the Nasdaq Composite gained 220.23 points, or 0.86 per cent, to finish at 25,929.66.

Technology stocks led the gains, with Nvidia rising 1.73 per cent, AMD surging 5.14 per cent, Intel jumping 11.2 per cent and Broadcom advancing 2.82 per cent. Microsoft declined 1.18 per cent, while Apple slipped 1.89 per cent. Tesla outperformed the broader market, rallying 4.59 per cent during the session.

Disclaimer: The article is for informational purposes only and not investment advice.

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