Indian equities snapped a two-day losing streak on June 9, buoyed by gains in banking shares, softer crude oil prices and improving global sentiment after tensions between Iran and Israel showed signs of easing. Strength in broader markets and optimism across Asian equities also supported the recovery.
After a volatile trading session, the Sensex closed 395 points higher at 73,919, while the Nifty 50 gained 119 points to end at 23,242.
Investor sentiment improved after reports indicated a pause in hostilities between Iran and Israel, reducing concerns over potential disruptions to global energy supplies. Crude oil prices also retreated from recent highs, easing inflationary worries and providing support to equity markets.
Brent crude futures slipped to around $93.3 a barrel, compared with nearly $97 during Monday's trading session.
Market experts said domestic equities witnessed a technical recovery following the recent correction, helped by easing geopolitical tensions and lower crude prices. However, caution remains due to continued foreign institutional investor (FII) selling and elevated global bond yields.
Investors are now awaiting upcoming US inflation data, which could influence expectations regarding future interest rate decisions by the US Federal Reserve. Market participants expect volatility to persist in the near term amid uncertainty over global economic conditions.
Among Nifty 50 stocks, airline major IndiGo emerged as the top gainer, rising nearly 4 percent after outlining plans to significantly expand its international operations and strengthen its position in global aviation markets.
Other major gainers included Jio Financial Services, State Bank of India, Axis Bank, ICICI Bank and Apollo Hospitals, each advancing around 2 percent.
On the losing side, Titan fell 2.2 percent to emerge as the worst performer in the Nifty pack. ONGC declined nearly 2 percent as weaker oil prices weighed on energy stocks. NTPC, Power Grid, Eternal and Tech Mahindra also ended lower.
The broader market outperformed benchmark indices. The Nifty Midcap 100 index rose 1.35 percent, while the Nifty Smallcap 100 index gained 1.69 percent, indicating strong buying interest beyond large-cap stocks.
Sector-wise, public sector banks led the advance. The Nifty PSU Bank index surged 3.62 percent, while the Nifty Bank index climbed 2.09 percent.
The rally followed the Reserve Bank of India's decision to allow banks access to a concessional swap facility for overseas borrowings with a minimum maturity of three years.
Information technology and media were the only sectors to end in negative territory.
Vodafone Idea was the most actively traded stock by volume, with nearly 96 crore shares changing hands during the session. Ola Electric, Easy Trip Planners, YES Bank and GTL Infrastructure also witnessed heavy trading activity.
As many as 100 stocks hit their upper circuit limits on the NSE, while 89 stocks touched their lower circuits.
JK India, Studds Accessories, Axiscades Technologies, Jindal Poly Films and Unimech Aerospace were among stocks locked in upper circuits. Cafe Coffee Day Enterprises, E2E Networks and Birla Cable featured among lower circuit stocks.
A total of 78 stocks touched fresh 52-week highs, while 51 stocks fell to one-year lows. Adani Green Energy, Cupid, Data Patterns, Apollo Hospitals and Federal Bank were among the stocks hitting fresh highs. Dalmia Bharat, Praveg, Reliance Industries, TCS and Swiggy figured among stocks touching 52-week lows.
Market breadth remained firmly positive, with 2,380 stocks advancing against 904 declines on the NSE, reflecting broad-based buying across sectors.
Technical analysts noted that Nifty found strong support near the 23,100 level and rebounded sharply from those levels. The formation of a bullish reversal pattern on the daily chart suggests the possibility of further upside if the index sustains above 23,100.
The immediate upside targets are seen around 23,400-23,500, while easing volatility could provide additional support to bullish sentiment in the coming sessions.
