Market Commentary End Session News Details

Benchmarks extend winning streak to third day on FII buying, easing geopolitical tensions

(16-Jun-26   16:59)

The benchmark indices extended gains for a third consecutive session on Tuesday, supported by easing crude oil prices, positive global cues and a return of foreign institutional investor (FII) buying. Sentiment improved after the US and Iran reached an agreement to reopen the Strait of Hormuz, easing concerns over global energy supplies and pushing Brent crude below $83 per barrel. FIIs turned net buyers after 13 straight sessions of selling, while a stronger rupee and a decline in India VIX further boosted risk appetite. The Nifty touched the 24,000 mark in late trade but pared some gains before the close, ending comfortably above the 23,950 mark. Gains were supported by IT stocks. However, metals, healthcare and pharma shares were under pressure.

The S&P BSE Sensex jumped 544.15 points or 0.71% to 76,808.48. The Nifty 50 index climbed 135.25 points or 0.57% to 23,989.15. In the three consecutive trading sessions, the Sensex and Nifty rallied 4.03 and 3.57%, respectively.

In the broader market, the BSE 150 MidCap Index gained 0.33% and the BSE 250 SmallCap Index added 0.48%.

The market breadth was strong. On the BSE, 2,293 shares rose and 1,967 shares fell. A total of 169 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 6.89% to 13.36.

Numbers to Track:

The yield on India's 10-year benchmark federal paper declined 0.13% to 6.863 compared with the previous session close of 6.872.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 94.5400 compared with its close of 95.5800 during the previous trading session.

MCX Gold futures for 5 August 2026 settlement rose 0.19% to Rs 153,203.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.13% to 99.54.

The United States 10-year bond yield shed 0.74% to 4.432.

In the commodities market, Brent crude for July 2026 settlement declined $2.07 or 2.49% to $81.10 a barrel.

Global Markets:

European shares advanced and most Asian indices closed higher on Tuesday as investors assessed developments surrounding a potential agreement between the US and Iran to end the ongoing conflict.

Earlier this week, US President Donald Trump announced that Washington and Tehran had reached an agreement to end hostilities in the Middle East. Pakistani Prime Minister Shehbaz Sharif said both sides had agreed to cease military operations across all fronts, with a formal signing ceremony scheduled in Switzerland on Friday. Reports also indicated that the memorandum of understanding had already been signed electronically on Sunday.

Trump further stated that the Strait of Hormuz would reopen on Friday, helping ease concerns over global energy supplies. The prospect of smoother oil shipments pushed crude prices nearly 5% lower on Monday.

In Japan, the Bank of Japan raised its benchmark interest rate to 1%, the highest level in 31 years. The move marked the central bank's first rate hike since December, when it increased rates to 0.75%, and the first time since 1995 that rates have reached 1%.

Economic data from China painted a mixed picture. Retail sales fell 0.6% year-on-year in May, marking the first decline since December 2022 and highlighting continued weakness in consumer demand. However, industrial production rose 4.5%, beating expectations and improving from April's 4.1% growth. China's unemployment rate eased to 5.1% in May from 5.2% in April.

Meanwhile, the Reserve Bank of Australia kept its benchmark interest rate unchanged at 4.35%, while reiterating its commitment to maintaining price stability and full employment.

On Wall Street, stocks ended sharply higher on Monday as easing geopolitical tensions boosted risk appetite. The Dow Jones Industrial Average rose 468.77 points, or 0.92%, to a record closing high of 51,671.03. The S&P 500 gained 1.65% to 7,554.29, while the Nasdaq Composite surged 3.07% to 26,683.94.

Stocks in Spotlight:

HCL Technologies rallied 3.68% after the company announced a strategic investment of Rs 1,427.25 crore in Bengaluru-based artificial intelligence startup Sarvam AI. The investment forms part of Sarvam AI's $300 million Series B funding round. The company said it has raised $234 million in the first close of the round at a post-money valuation of $1.5 billion, with HCL Tech participating as the lead strategic investor. The company will acquire a 10.46% stake in Sarvam AI through the purchase of 41,421 equity shares. The transaction, which is expected to be completed within two weeks, will be entirely funded through cash consideration.

Suzlon Energy climbed 4.25% after Union Minister for New and Renewable Energy Pralhad Joshi outlined ambitious growth targets for India's wind energy sector and highlighted record capacity additions during FY26. Further, Joshi also highlighted the significant opportunity in repowering existing wind projects. He noted that a large number of older turbines operating across the country can be replaced with newer, higher-capacity machines, potentially boosting power generation from existing sites.

Inox Wind (IWL) rose 1.25% after the company announced that it has signed a memorandum of understanding (MoU) with Inox Clean Energy (Inox Clean) for the supply of 1,500 MW of wind turbines. Under the agreement, IWL will supply its 3.3 MW and 4X MW wind turbine generators for renewable energy projects being developed by Inox Clean across India.

Adani Ports and Special Economic Zone (APSEZ) rose 0.90% after the company said that it has expanded its strategic partnership with Kaleris to drive next-generation capabilities across its ports and logistics network. The partnership is part of its broader 2030 objectives involving an outlay of $850 million towards decarbonisation, technology upgrades and an ambitious one billion tonnes of cargo handling capability per annum.

Godavari Biorefineries rallied 5.56% after the company announced that the japanese patent office had granted a patent for its invention, 5-Hydroxy-1,4-Naphthalenedione, for use in the treatment of cancer. According to the company, the patent covers a novel class of compounds that have demonstrated strong inhibitory effects on cancer cells and cancer stem cells. The compounds have shown significant efficacy against multiple cancer types, including breast and prostate cancer, highlighting their potential therapeutic applications.

Amir Chand Jagdish Kumar (Exports) added 0.68% after the company announced that Al Tasnim Group, one of the leading food distribution companies in the Sultanate of Oman, will distribute Aeroplane Rice products in Oman. Through this partnership, Al Tasnim Group will leverage its extensive distribution network and market expertise to strengthen the presence of Aeroplane Brand products among consumers, retailers, and food service channels throughout the Sultanate.

Indian Railway Catering and Tourism Corporation (IRCTC) rose 0.97%. The company said Sudhir Kumar, GM (Finance), has ceased to be CFO, KMP and senior management personnel with effect from 15 June 2026.

Bandhan Bank rose 2.78%. The bank said that its board has approved the proposal for sale of identified non-performing assets (NPA) that have principal outstanding amounting to Rs 303.74 crore to asset reconstruction companies. In a regulatory filing made post market hours on Monday (15 June 2026), the private sector lender informed that its board of directors has approved the proposal for sale of identified Non-Performing Assets ('NPA') with more than 180 Days Past Due ('DPD'), pertaining to the Housing Finance Portfolio of the Bank.

Mini Diamonds (India) (MDIL) surged 9.77% after the company announced that it had secured a significant domestic order worth Rs 16.25 crore from Mumbai-based Aura Diamond for the supply of cut and polished natural diamonds. According to the company, the order was received on 16 June 2026 and is scheduled to be executed within four months from the date of the order. Payment for the consignment is expected to be made within 150 days from the completion of the order.

Dhanlaxmi Bank shed 1.77%. The bank has appointed Krishnakumar K as its chief financial officer (CFO) in the grade of General Manager, replacing Kavitha T.A. Krishnakumar is a Fellow Member of the Institute of Chartered Accountants of India and brings nearly three decades of banking and financial services experience. He spent 30 years at Federal Bank, including 22 years overseeing financial reporting and taxation functions, and retired as executive vice president.

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