Market Commentary End Session News Details

Banks power Nifty above 23,200 as RBI swap measures lift sentiment

(09-Jun-26   16:32)

Key equity benchmarks rebounded on Tuesday, supported by lower crude oil prices, positive global cues and strong gains in banking stocks. Brent crude slipped below $93 per barrel as tensions between Israel and Iran eased, helping alleviate concerns over inflation and India's import bill.

Global sentiment remained constructive, aided by a recovery in technology stocks across major markets. Banking shares outperformed after the RBI announced operational details of its forex swap facilities for FCNR(B) deposits, external commercial borrowings and overseas foreign currency borrowings. The measures are expected to encourage overseas fund-raising and lower hedging costs. The Nifty ended above the 23,200 mark, led by gains in banking and financial services stocks.

The S&P BSE Sensex advanced 394.50 points or 0.54% to 73,918.76. The Nifty 50 index rose 119.10 points or 0.52% to 23,242.10. The Nifty fell 1.25% in the previous two sessions.

State Bank of India (up 2.11%), ICICI Bank (up 1.98%) and Axis Bank (up 1.92%) boosted the Nifty today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 1.24% and the BSE 250 SmallCap Index added 1.39%.

The market breadth was strong. On the BSE, 2,782 shares rose and 1,423 shares fell. A total of 207 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 8.53% to 15.58.

RBI's Forex Swap Measures:

The RBI detailed two dollar-rupee swap facilities announced by Governor Sanjay Malhotra in the monetary policy statement on 5 June 2026.

Under the first scheme, the RBI introduced a US Dollar-Rupee forex swap facility for eligible ECBs raised by public sector undertakings and overseas foreign currency borrowings raised by authorised dealer category-I banks. The facility will be available for borrowings with a minimum maturity of three years and will remain open for eligible inflows received up to 31 December 2026.

Banks can sell US dollars to the RBI and simultaneously agree to buy them back at the end of the swap period. The swap will be priced at a fixed rate of 1.5% per annum, compounded semi-annually, with a maximum tenor of five years.

In a separate measure, the central bank launched a forex swap facility for fresh FCNR(B) deposits mobilised by banks. The facility covers deposits with maturities ranging from three to five years and will remain open for deposits raised up to 30 September 2026.

The FCNR(B) swap facility will be conducted at par, allowing banks to swap foreign currency inflows with the RBI while maintaining exposure to the underlying deposits. The scheme is expected to encourage foreign currency inflows and strengthen liquidity conditions.

Numbers to Track:

The yield on India's 10-year benchmark federal paper slipped 0.62% to 6.906 compared with previous session close of 6.949.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.4100 compared with its close of 95.6100 during the previous trading session.

MCX Gold futures for 05 August 2026 settlement added 0.01% to Rs 154,789.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 99.75.

The United States 10-year bond yield rose 0.13% to 4.558.

In the commodities market, Brent crude for July 2026 settlement lost $1.74 or 1.85% to $92.51 a barrel.

Global Markets:

US Dow Jones futures were up 109 points, indicating a positive start for Wall Street later today.

European indices traded higher on Tuesday as easing tensions in the Middle East improved risk appetite. Investors also awaited the European Central Bank's interest rate decision due later this week.

Asian shares mostly ended in the green, supported by a rebound in semiconductor and artificial intelligence-related stocks after sharp declines in recent sessions. Reduced geopolitical tensions in the Middle East further boosted sentiment.

South Korea's KOSPI led regional gains after chipmakers recovered from the previous session's sell-off. Chinese equities also advanced after stronger-than-expected trade data for May.

China's exports rose 19.4% YoY to a record $376.78 billion in May 2026, exceeding market expectations and marking the fastest growth since February. Growth was driven by robust demand for semiconductors and AI-related hardware, as well as inventory build-up ahead of anticipated energy price pressures. For the January-May period, exports increased 15.5% YoY to $1.71 trillion.

Iran on Monday suspended military strikes against Israel but warned it could resume attacks if Israeli operations in Lebanon continue. Israeli Prime Minister Benjamin Netanyahu later said the conflict involving Iran and Hezbollah was not yet over.

Overnight, US markets ended mixed. The S&P 500 and Nasdaq Composite advanced as semiconductor stocks rebounded from Friday's sell-off and investors monitored efforts by President Donald Trump to preserve a fragile ceasefire between Iran and Israel.

The S&P 500 gained 0.30% to close at 7,405.73, while the Nasdaq Composite rose 0.86% to 25,929.66. The Dow Jones Industrial Average fell 80.77 points, or 0.16%, to end at 50,786.01.

Stocks in Spotlight:

Motilal Oswal Financial Services surged 5.25% to Rs 867.50 after HDFC Life Insurance Company acquired a 0.30% stake in the company through a block deal on Monday, 8 June 2026. According to NSE block deal data, HDFC Life Insurance purchased 18.20 lakh shares of Motilal Oswal Financial Services at Rs 842.50 per share.

Redington jumped 4.69% after Apple announced major software and artificial intelligence upgrades at its annual Worldwide Developers Conference (WWDC). Traders often view major Apple product and software announcements as positive for Redington due to its exposure to Apple's hardware ecosystem and sales growth in India.

Aye Finance climbed 8.68% after the company's board approved raising up to $15 million through issuance of non-convertible debentures (NCDs) on a private placement basis. The company will issue senior, secured, rated, listed, redeemable and transferable NCDs with a face value of Rs 1 lakh each for cash at par. The fundraising amount will be equivalent to up to $15 million in Indian rupee terms.

JNK India surged 15.70% after the company received a large order from CC7 Emirates Engineering Solutions L.L.C., UAE for the supply of waste gas handling systems. According to the company's classification, a large order is valued between Rs 100-300 crore.

Grasim Industries advanced 1.49% after the company's board approved capex of Rs 3,094 crore for the expansion of Lyocell, third-generation Cellulosic Staple Fibre (CSF) capacity at Harihar, Karnataka.

SML Mahindra advanced 1.98% after the company reported an 11.64% year-on-year increase in commercial vehicle (CV) sales to 1,678 units in May 2026, compared with 1,503 units sold in May 2025.

Ratnaveer Precision Engineering added 2.88% after the company announced that its board is scheduled to meet on Thursday, 11 June 2026 to consider raising funds via equity shares through various modes.

Avantel rose 4.35% after the company secured a contract worth Rs 9.94 crore from the Defence Research and Development Organisation (DRDO), under the Ministry of Defence for the development and testing of satellite terminals for GSAT.

Marsons rose 2.29% after it had secured an order worth Rs 9.48 crore from West Bengal State Electricity Transmission Company (WBSETCL) for the repair, inspection and testing of power transformers.

VA Tech WABAG surged 2.72% after it had secured a design-and-build contract for the proposed Ajman Sewage Biorefinery Plant ' Phase 3 in the United Arab Emirates (UAE) from Ajman Sewerage (Private) Company.

IRB Infrastructure Developers shed 0.68%. The company, along with its two sponsored Infrastructure Investment Trusts (InvITs), reported a 25.30% year-on-year increase in toll revenue for May 2026.

JSW Steel shed 0.08%. The company reported consolidated crude steel production of 22.93 lakh tonnes in May 2026, registering a 15% year-on-year increase compared with 19.96 lakh tonnes produced in May 2025.

IPO Update:

Hexagon Nutrition received bids for 1,14,24,50,073 shares as against 2,16,02,008 shares on offer, according to stock exchange data at 16:25 IST on Tuesday (9 June 2026). The issue was subscribed 52.89 times.

The issue opened for bidding on 5 June 2026 and it will close on 9 June 2026. The price band of the IPO is fixed between Rs 42 to Rs 45 per share.

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