Eicher Motors Ltd emerged as the top performer with a 5.05% gain to close at ₹7,334.00, recording the highest percentage increase among major stocks. Shriram Finance Ltd followed closely with a 2.75% rise to ₹966.85, while Mahindra & Mahindra Ltd gained 2.69% to ₹3,164.20. Bajaj Finance Ltd and HDFC Bank Ltd also posted strong gains of 2.25% and 2.22% respectively, with Bajaj Finance closing at ₹937.20 and HDFC Bank at ₹783.85. Bajaj Auto Ltd rounded out the top gainers with a 2.07% increase to ₹10,767.50. In the latest trading session, Larsen & Toubro boosted the indices with a 2.71% rise, while HDFC Bank and ICICI Bank gained 2.67% and 2.11% respectively.
The Nifty PSU Bank index delivered a strong performance with a 2.90% surge to close at 8,238.10, significantly outperforming broader market indices. Union Bank of India led the gains with a 5.07% rise, followed by Bank of India which added 4.35% and Canara Bank which jumped 4.27%. This marked a notable turnaround for the PSU banking sector, which had lost 7.00% over the past month. The sector's strong performance contributed to the broader market gains, with the Nifty Bank index increasing 2.29% and the Nifty Financial Services index gaining 2.24%.
The Nifty 50 index recorded a 1.32% gain to close at 24,031.70, while the Sensex increased 1.42% to close at 76,488.96. The Nifty Bank index performed well with a 2.29% increase, reflecting strong banking sector performance. The Nifty PSU Bank index has shown impressive long-term performance, gaining 23.00% over the last year compared to the 3.31% fall in the benchmark Nifty 50 index. Trading volumes showed significant variation across different stocks, with Eicher Motors recording the highest volume of 3.78 lakh shares and Shriram Finance following with 6.73 lakh shares. In the broader market, the BSE 150 MidCap Index jumped 0.80% and the BSE 250 SmallCap Index gained 1.22%. Market breadth remained strong with 2,703 shares rising and 1,607 shares falling on the BSE.
The government is preparing a phased pipeline of Offer For Sale transactions across three public sector enterprises in the first two quarters of FY27. Coal India, Life Insurance Corporation, Indian Overseas Bank, and IRFC have emerged as the likely candidates, with the rollout calibrated as per market conditions. Among specific transactions under consideration, the government may dilute up to 2% stake in Coal India through an OFS in early FY27, while an LIC OFS is likely in Q2 between July and September. Further stake dilution in Indian Overseas Bank and IRFC is under active consideration, though timing depends on market stability. This comes against an ambitious asset sale and monetisation target of ₹80,000 crore for FY27, with the government already active on divestment front having divested a 2.17% stake in IOB in December 2025 and a 2% stake in IRFC in February 2026.
The latest market surge was driven by plunging crude oil prices and rising hopes of a US-Iran peace deal, sparking a powerful risk-on rally across global markets. Brent crude for June 2026 settlement tumbled $5.76 or 5.56% to $97.78 per barrel, easing pressure on global markets. Media reports indicated that Washington and Tehran had reached an in-principle agreement to end their more than two-month-long conflict, with a key part including reopening the Strait of Hormuz. The NSE's India VIX slumped 6.74% to 16.70, reflecting improved market sentiment. The US Dollar Index (DXY) was down 0.25% to 98.99, while the US 10-year bond yield declined 2.06% to 4.479. Global markets showed strength with the US Dow Jones index futures up 422 points and European shares advancing on Monday after hopes of a possible US-Iran agreement strengthened over the weekend.
