Bank Rally Lifts Benchmarks as RBI Forex Measures Boost Sentiment

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

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By Dehuti Jani

June 9, 2026 at 11:44 AM IST

Indian equity benchmarks rose on Tuesday, led by strong gains in banking and financial shares after the Reserve Bank of India announced concessional forex swap facilities for overseas borrowings by banks. Easing tensions in West Asia and softer oil prices also supported investor sentiment. The Nifty50 rose 0.52% or 119.10 points to close at 23,242.10, while the BSE Sensex gained 394.50 points or 0.54% to settle at 73,918.76.

The RBI on Monday allowed banks to raise overseas foreign-currency borrowings of at least three years at concessional swap rates in a move aimed at improving dollar inflows and supporting the rupee amid elevated oil prices and foreign outflows.

Banking stocks led the rally, with PSU banks surging more than 3%, while private banks and broader financial shares also advanced sharply. Realty and auto stocks outperformed, while IT and media shares lagged.

Investor sentiment additionally improved after Donald Trump said peace talks with Iran were continuing following a pause in direct exchanges between Tehran and Israel, helping cool Brent Crude prices.

Among Nifty50 gainers, InterGlobe Aviation, Jio Financial Services and Eicher Motors led advances. Broader markets also strengthened, with the Nifty MidCap and Nifty SmallCap indices rising 1.35% and 1.69%, respectively.

Top Movers of the Day

InterGlobe Aviation (IndiGo) was nifty top gainer, closed at ₹4,531 up about 4%, as upbeat analyst commentary and multiple ‘buy’ ratings post analyst meet boosted confidence in earnings and traffic outlook.

Jio Financial Services ended among the strongest Nifty gainers, up around 2% to roughly ₹234.20, riding the broad rally in financials as softer crude and improved risk sentiment lifted rate‑sensitive stocks.

Eicher Motors closed about 2% higher to ₹7,185 helped by the bounce in autos and hopes of resilient premium two‑wheeler demand as market sentiment turned risk‑on.

SBI jumped roughly 2.2% to around ₹1,004, leading PSU banks after RBI’s fresh FCNR(B)/ECB measures and forex swap facility sparked buying in state‑owned lenders and drove Nifty PSU Bank up over 3%.

ICICI Bank gained about 2% to ₹1,276, supported by strong flows into private banks as Bank Nifty climbed nearly 2% on RBI’s dollar‑inflow measures and easing crude prices.

Ola Electric rallied around 6.5% to roughly ₹47.34, extending its sharp 12‑week rebound of about 120% from March lows as investors bet on turnaround prospects in the EV space.

Mahindra Holidays surged about 10% to the ₹232, its best move in weeks, as value buying emerged after a deep correction from 52‑week highs and volumes spiked over 10x the five‑day average.

PI Industries climbed roughly 6.8% to ₹2,865.50, rebounding from recent 52‑week lows as investors accumulated the agro‑chem name on expectations of business recovery and attractive valuations.

Morepen Laboratories soared about 14% to near ₹48.76, snapping a five‑day losing streak with volumes up nearly 3.8x, as bargain hunters stepped in after a steep drop from its 52‑week high.

Suven Life Sciences jumped about 14% to ₹266.25, featuring among the day’s top gainers on the back of strong buying in mid‑cap pharma and hopes of improved pipeline traction.

Relaxo Footwears rose 9.3% to around ₹349, as consumer‑discretionary names attracted fresh buying on expectations that softer crude and rural recovery could support margins and volumes.

NLC India fell about 2% to ₹328.60, under pressure as the government’s 3% stake OFS worth around ₹1,263 crore opened at a discount, prompting supply‑led selling in the PSU miner.

Futures & Options
Nifty June 2026 futures closed at 23,347, a premium of 104.9 points over the spot Nifty 50 close of 23,242.10, indicating improved risk appetite after easing geopolitical tensions and gains in banking stocks. In the cash market, the Nifty 50 rose 119.10 points or 0.52%, while India VIX declined 8.53% to 15.58, reflecting a sharp cooling in near-term volatility expectations.

Among stock futures, HDFC Bank, SBI and Reliance Industries 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 declined further on Tuesday as investors continued to bet on stronger foreign inflows following the RBI’s recent external financing measures. The benchmark 6.94% GS 2036 yield ended at 6.9163%, lower than 6.9558% on Monday, with sentiment supported by expectations that the RBI’s swap facilities and relaxed investment norms could improve dollar inflows into the domestic market.

The RBI on Monday announced a dollar-rupee swap facility for fresh FCNR(B) deposits mobilised by banks for three to five years, boosting expectations of increased foreign currency inflows.

Meanwhile, 10 states and union territories raised 148 billion rupees through state government bond auctions, with the RBI accepting the entire notified amount. Tamil Nadu’s re-issued 7.74% 2036 state bond was sold at a cut-off yield of 7.6309%, around 72 basis points above the benchmark 2036 central government bond yield. Among participating issuers were Bihar, Chhattisgarh, Gujarat, Jammu and Kashmir, Kerala, Madhya Pradesh, Manipur, Mizoram, Tamil Nadu and Uttar Pradesh. The lowest cut-off yield was 7.1782% on Chhattisgarh’s 2031 bond, while the highest was 7.8293% on its 2040 paper.

Forex
Indian rupee strengthened on Tuesday as softer oil prices and expectations of improved foreign inflows supported sentiment toward the domestic currency. The rupee closed at 95.35 against the US dollar, up 0.4% from the previous session. Regional Asian currencies also strengthened after Brent Crude prices fell around 2% following reports that Iran and Israel had halted attacks after an appeal from Donald Trump.

Market participants said recent regulatory measures announced by the Reserve Bank of India to attract foreign capital could help narrow India’s balance of payments deficit and reduce pressure on the rupee, which had faced persistent weakness amid elevated oil prices and foreign outflows.

Crypto
Crypto markets stabilised on Tuesday after recent sharp declines, with investors cautiously returning to risk assets amid improving sentiment across global markets.

Bitcoin held above the $63,000 mark after recovering from levels below $62,000 earlier, signalling a pause in the recent selloff that erased a significant portion of May’s gains. The broader crypto market capitalisation rose 0.8% to around $2.18 trillion. Ethereum traded near $1,688 after posting modest gains alongside the broader market recovery.

Market participants said easing geopolitical tensions and bargain buying after recent heavy liquidations helped support prices, although overall sentiment remained fragile amid macroeconomic uncertainty and persistent volatility.

US Stock Futures
US stock futures traded higher early Tuesday as a rebound in semiconductor shares extended gains across Wall Street following last week’s sharp technology selloff. Futures linked to the S&P 500 rose 0.39%, while Nasdaq-100 futures gained 0.67%. Futures tied to the Dow Jones Industrial Average advanced 0.19%.

Chip stocks continued to lead the recovery after supporting gains in the regular session on Monday, when the S&P 500 rose 0.3% and the Nasdaq Composite climbed 0.86%, recovering part of last week’s tech-driven losses.

US Treasury Notes
US Treasury yields were largely steady on Tuesday as bond markets paused after recent volatility driven by strong US economic data and geopolitical tensions. The benchmark 10-year Treasury yield hovered near 4.548%, easing slightly from the previous session’s high of 4.58%, while the policy-sensitive 2-year yield slipped toward 4.14% after touching a multi-month high earlier.

Treasuries found some support after softer Brent Crude prices eased immediate inflation concerns amid hopes of a ceasefire in West Asia. Market participants remained cautious ahead of upcoming US macroeconomic releases, including private payrolls data and consumer inflation figures, which could influence expectations around future Federal Reserve policy moves.

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