Sensex rises 395 points; Nifty ends above 23,200

Market snaps a two-day losing streak

Indian equity benchmarks closed higher on Tuesday, reversing the previous two sessions of declines as strong buying in banking and financial stocks outweighed weakness in information technology shares. The S&P BSE Sensex and the Nifty 50 ended with modest gains after trading higher through the afternoon. The recovery came as investors responded to policy-related cues from the Reserve Bank of India (RBI) and improved global risk sentiment. Market participants also tracked crude oil moves and geopolitical headlines tied to West Asia.

Afternoon trade: indices near the day’s high

The market moved up steadily in the second half of the session, supported by financials. At 2:11 pm, the Sensex was up 256.38 points, or 0.35 percent, at 73,780.64, while the Nifty gained 84.90 points, or 0.37 percent, to 23,207.90. Market breadth stayed positive during this phase, with 2,429 stocks advancing against 1,353 declines. The strength in banks helped keep benchmarks close to intraday highs even as IT names remained under pressure.

Closing numbers: Sensex up 394.50, Nifty adds 119.10

By the end of trade, the benchmarks sealed a stronger finish. As per provisional closing data, the Sensex advanced 394.50 points, or 0.54%, to 73,918.76. The Nifty 50 rose 119.10 points, or 0.52%, to 23,242.10, ending above the 23,200 level. The intraday tone was firm, with reports noting the Sensex rose as much as 511 points and the Nifty 50 touched an intraday high of 23,279 during the session.

Banking and financials lead the rally

Banking stocks were the primary driver of the day’s move. The Nifty PSU Bank index surged 3.62%, emerging as the top-performing sectoral gauge. The Nifty Bank index advanced 2.09%, while Nifty Private Bank and Nifty Financial Services gained 1.64% and 1.40%, respectively. In afternoon trade, banking strength was already visible, with the Nifty Bank index rising nearly 2% and the PSU Bank index up over 3%.

RBI’s USD-INR forex swap facility: what changed

A key domestic trigger was the RBI’s announcement of USD-INR forex swap facilities aimed at attracting foreign currency inflows. The central bank introduced a US dollar-rupee forex swap facility for fresh FCNR (B) deposits mobilised by banks, with a minimum tenor of three years and a maximum of five years. Separately, market commentary highlighted that lenders were allowed to access a concessional swap facility for overseas borrowings with a minimum maturity of three years. Banking shares reacted positively as investors assessed the potential support from these measures.

IT and media stocks cap the upside

Despite the broad rise, losses in IT majors and select index heavyweights limited the market’s overall upside. Session commentary noted that IT stocks continued to drag during the rally led by financials. Media stocks were also cited among the sectors that corrected even as PSU banks, private banks, and financial services counters advanced.

Global cues and crude: sentiment improves

Global factors contributed to the recovery. Easing tensions between Israel and Iran improved risk appetite, while a pause in US-Iran hostilities was also cited as supportive for market mood. Softer crude oil prices added to the positive tone, alongside gains in Asian and US equities. These factors helped domestic indices stabilise after recent weakness, even as uncertainty around the West Asia conflict remained part of the broader backdrop.

Broader market outperforms; volatility eases

Broader markets outperformed the frontline indices, reflecting a wider risk-on shift in the session. Midcap stocks rose 1.3% and smallcaps gained 1.7%. A decline in India VIX was also noted, signalling easing market volatility during the move higher. Market breadth remained firmly in favour of advances, reinforcing the broad-based nature of the rebound.

Stock-specific moves: winners and laggards

Among Sensex constituents, InterGlobe Aviation (IndiGo) led gainers, rising 3.86% to Rs 4,529.75. State Bank of India (SBI) followed with a 2.13% rise, while ICICI Bank, Axis Bank, Bajaj Finance and Asian Paints gained 2.03%, 1.92%, 1.84% and 1.81%, respectively. On the Nifty, biggest gainers included InterGlobe Aviation, Jio Financial, Eicher Motors, SBI, and Apollo Hospitals, while losers included ONGC, Titan Company, NTPC, Power Grid Corp and Tech Mahindra.

Currency check: rupee ends stronger

The Indian rupee ended 36 paise higher at 95.35 per dollar on Tuesday, compared with the previous close of 95.71. The firmer close in the currency market aligned with improved sentiment during the session, alongside the policy-related focus on foreign currency inflows.

Key data snapshot

Why the move matters

The day’s gains were notable because they interrupted a two-session losing run and were driven by a clear leadership group - banks and financials. The RBI’s forex swap measures became the central domestic catalyst, with investors rotating into lenders and related financial names. At the same time, the market’s inability to extend gains sharply reflected continued pressure in IT and select heavyweights, keeping the rally measured rather than runaway.

Conclusion

Sensex and Nifty ended June 9 higher, led by a strong rally in banking and financial shares after the RBI detailed USD-INR swap facilities to attract foreign currency inflows. With broader markets outperforming and the rupee closing stronger, investors will continue tracking policy developments, crude prices, and evolving geopolitical cues from West Asia.