Equities Rally, Bond Yields Fall on Lower Oil, Dovish RBI

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

RBI Governor Sanjay Malhotra

By Dehuti Jani

June 24, 2026 at 12:01 PM IST

Indian equity benchmarks rose sharply on Wednesday as falling crude oil prices and easing concerns over domestic rate hikes boosted investor sentiment, while banking stocks gained after the Reserve Bank of India relaxed lending norms linked to foreign-currency deposits. The Nifty50 climbed 197.55 points or 0.83% to close at 24,021.65, while the BSE Sensex advanced 790.54 points or 1.04% to 76,991.22.

Sentiment was aided by a decline in Brent Crude prices to their lowest level since before the Iran conflict began, as signs emerged that oil tankers stranded near the Strait of Hormuz were resuming movement. Lower oil prices strengthened expectations of a more benign inflation outlook for India.

Investors also welcomed comments from Sanjay Malhotra, who said it was premature to discuss interest-rate hikes as inflationary pressures had not become broad-based. The remarks reduced expectations of any near-term policy tightening and supported both equity and bond markets.

Banking stocks led the gains after the RBI clarified that banks can extend loans against foreign-currency deposits held by non-resident Indians. The Nifty Bank and Nifty Private Bank indices rose about 1.7% and 1.9%, respectively, with HDFC Bank and ICICI Bank gaining around 2.5% each.

Among Nifty50 stocks, InterGlobe Aviation, Adani Enterprises and Trent were the top gainers. The broader market also ended in positive territory, with the Nifty MidCap and Nifty SmallCap indices gaining 0.10% and 0.39%, respectively. IT, realty, banking and financial stocks outperformed, while auto and metal shares lagged.

The rupee ended marginally stronger at 94.6650 per US dollar despite a firmer dollar globally, supported by likely RBI intervention. Meanwhile, government bonds rallied sharply, with the benchmark 6.94% GS 2036 yield falling to below 6.80% from 6.84% in the previous session. Traders cited dovish RBI commentary, lower oil prices and strong foreign investor demand amid expectations of India's inclusion in the Bloomberg Global Aggregate Index later this month.

Top Movers of the Day

TCI Express jumped 12.22% to ₹592.50 as renewed optimism around logistics demand and expectations of stronger quarterly delivery metrics drew fresh buying interest.

Vedanta ticked up 0.28% to ₹282.50, supported by firmer metal prices and cautious optimism around commodity demand.

TCS rose 2.31% to ₹2,107.10 as investors favoured large-cap IT names for stability amid mixed market cues.

ICICI Bank gained 2.59% to ₹1,373 on broad buying in financials and confidence in the bank’s credit growth trajectory.

Trent added 3.60% to ₹3,256 on signs of resilient retail footfall and expectations of inventory restocking ahead of the festive season.

Jyoti CNC Automation climbed 5.32% to ₹779 after reports of healthy order inflows and positive broker commentary.

LT Foods rose 2.88% to ₹390 as steady overseas demand and signs of margin stability attracted buyers.

Cholamandalam Investment advanced 4.12% to ₹1,797 on reassuring asset-quality trends and continued credit demand.

KPR Mill gained 7.47% to ₹1,215.60 amid reports of improving yarn demand and brighter textile export prospects.

Ola Electric slipped 1.05% to ₹43.17 on muted EV sentiment and recent volatility in the stock.

Suzlon Energy fell 0.60% to ₹57.94 as sector sentiment remained subdued.

IRFC dropped 6.83% to ₹91.93 after profit-taking and weak demand dynamics in transport finance weighed on the stock.

Futures & Options
Nifty June futures closed at 24,053.60, a premium of 31.95 points over the spot Nifty 50 close of 24,021.65, indicating a positive undertone in the derivatives market. In the cash market, the Nifty 50 surged 197.55 points or 0.83%, supported by gains in banking, IT and realty stocks.

Meanwhile, India VIX declined 3.99% to 13.39, reflecting easing near-term volatility expectations and improved risk appetite. Among stock futures, HDFC Bank, Tata Consultancy Services and Infosys were the most actively traded contracts in the NSE F&O segment. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond benchmark yields fell sharply on Wednesday after dovish comments from RBI Governor Sanjay Malhotra eased concerns about a potential rate hike in August, while lower crude oil prices and strong foreign buying supported sentiment. The benchmark 6.94% GS 2036 yield declined to 6.7832% from 6.8364% on Tuesday, extending its recent rally.

Dealers said the RBI Governor's remarks prompted traders to unwind expectations of near-term policy tightening, making it the key driver of the day's move. Foreign portfolio investors were also active buyers amid growing expectations of India's inclusion in the Bloomberg Global Aggregate Index later this month.

Meanwhile, Brent Crude fell further to around $75 per barrel, strengthening the case for lower inflation and supporting demand for government securities.

Forex
The Indian rupee outperformed most Asian peers, finishing at 94.6650 against the US dollar, slightly firmer than Tuesday’s close of 94.7350. The currency initially slipped in early trade, but dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, helped steady the market and shield the rupee from a stronger dollar as traders positioned themselves for potential Federal Reserve rate hikes.

Crypto
Crypto markets came under broad selling pressure today as a sharp Nasdaq selloff, led by AI and semiconductor stocks, spilled into digital assets. Bitcoin traded near $62,694 as risk-sensitive crypto positions felt the hit, and the market absorbed $717 million in liquidations over 24 hours, wiping out nearly 145,000 traders in the process.

Ethereum traded at $1,665.78, up 0.78% today. The token held up reasonably well despite a broader crypto sell-off after a Nasdaq-led rout, suggesting some buyers stepped in on dips.

US Stock Futures
US stock futures were mixed after technology stocks rebounded in pre-market trade: S&P 500 futures were up 0.2% and Nasdaq 100 futures rose 0.6%, while Dow futures fell 69 points, or 0.1%. Micron Technology climbed 3.9% and SanDisk gained 3.5% in the pre-market as investors awaited Micron’s earnings due after the close; analysts expect earnings of $20.8 per share on revenue of $35.8 billion. The Roundhill Memory ETF (DRAM), which had been down in the regular session, moved 4.3% higher pre-market. Alphabet advanced 0.7% after S&P Global said it will join the 30-stock Dow next Monday. Intel and Qualcomm recovered some losses this morning, Intel added more than 2.0% and Qualcomm rose 2.2%,while traders rotated into defensive names, lifting Walmart nearly 2.0% and IBM 5.0%.

US Treasury Notes
US Treasury prices fell slightly in the pre-market today, pushing yields a bit higher as investors trimmed short- and medium-term holdings. Markets are increasingly pricing in a higher chance of another Federal Reserve rate hike later this year. The 10-year Treasury yield rose to about 4.483%. The 2-year yield climbed to about 4.199%. Falling global oil prices and shifting geopolitics helped limit the sell-off ahead of today’s $70 billion auction of five-year notes.

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