The Indian stock market demonstrated remarkable resilience on Thursday, June 12, recovering from early losses to close higher by the end of the session. According to latest market data, the Nifty 50 ended 0.12% higher at 23,243.50, while the Sensex gained 0.18% to close at 74,113.77. This recovery came after the indices opened lower, with the Nifty 50 down 0.49% at 23,100.50 and the Sensex declining 0.46% to 73,642.79 at 9:19 AM. The recovery was primarily driven by gains in banking and pharma stocks, with ICICI Bank, Axis Bank, JSW Steel, and Grasim Industries emerging as top gainers on the Nifty 50.
The market recovery was supported by contrasting sectoral performance, with pharma and healthcare stocks outperforming while technology counters faced significant pressure. As per market reports, the Nifty IT index plunged over 2%, making it the worst-performing sector of the day. The Nifty Consumer Durables, Nifty Auto, and Nifty Chemicals indices also traded lower, while the Nifty Pharma and Nifty Healthcare indices outperformed the broader market. Weak participation from heavyweight stocks and continued selling pressure in technology counters also weighed on market sentiment, as reported by market sources.
Tensions in the Middle East escalated after the US extended its attacks on Iran for a second consecutive day, following US President Donald Trump's warning that Tehran would "pay the price" for stalled negotiations. According to reports, Iran retaliated with attacks targeting Bahrain, Kuwait, and Jordan, while Iran's foreign ministry stated that the latest attacks had rendered the existing ceasefire agreement "meaningless." US President Trump stated on Wednesday that Tehran had ample opportunity to negotiate an agreement with Washington but failed to do so, adding that Iran would now face severe consequences. Reports of explosions near the Strait of Hormuz have heightened fears of supply disruptions in global energy markets, with Brent crude futures climbing 2.47% to $95.40 per barrel and WTI crude rising 2.89% to $92.63 per barrel.
Despite the recovery, market sentiment remains cautious amid ongoing geopolitical tensions and global economic concerns. Technically, Nifty 50 has immediate support in the 23,000–23,100 zone, with a decisive breach below this range potentially dragging the index towards 22,700. On the upside, the index needs to reclaim and sustain above its 20-day moving average near 23,554 to regain bullish momentum and target 23,700. For the Sensex, 73,490 remains a crucial support level, with sustaining above this mark potentially leading to recovery towards the 74,550–74,600 zone. The Put-Call Ratio for the June series stood at 0.82, with significant put open interest concentrated at the 23,200 strike and call open interest heavy between 23,300 and 24,500 strike levels.
