Indian equity benchmarks extended their recovery momentum, with the S&P BSE Sensex advancing 216.72 points or 0.29% to 73,740.98 and the Nifty 50 index rising 78.65 points or 0.34% to 23,201.65 as of 13:28 IST. The broader market outperformed frontline indices significantly, with the BSE 150 MidCap Index rising 0.77% and the BSE 250 SmallCap Index adding 0.87%. Market breadth remained robust with 2,605 shares rising and 1,435 shares falling on the BSE, while 201 shares remained unchanged. The recovery reflects continued investor confidence following the RBI's policy announcement that provided relief to rate-sensitive sectors.
The NSE's India VIX tumbled 6.12% to 15.99, indicating a significant improvement in market sentiment and reduced volatility expectations. This decline from the previous session's high of 16.37 represents a notable shift in market psychology, with the index now trading below its intraday peak of 16.37 that was driven by macroeconomic and currency-related pressures. According to HDFC Securities, the sharp rise towards 16.37 was primarily driven by a combination of macroeconomic and currency-related pressures that intensified hedging demand across index derivatives, but the subsequent decline reflects improved confidence following the RBI's policy decision. The Nifty 30 June 2026 futures were trading at 23,238.70, at a premium of 32.95 points compared to the spot index.
PSU banks and financial services shares emerged as the top performers, with State Bank of India gaining 1.98% and ICICI Bank rising 1.91%. Other major gainers included InterGlobe Aviation surging 3.53%, Eicher Motors advancing 2.63%, Jio Financial Services up 2%, and Marsons zooming 8.55% after securing an order worth ₹9.48 crore from West Bengal State Electricity Transmission Company. However, IT, oil & gas and media sectors faced pressure with NTPC declining 1.78%, Tech Mahindra falling 1.75%, and Infosys dropping 1.35%. The sectoral performance reflects mixed investor sentiment across different industries, with rate-sensitive sectors continuing to benefit from the RBI's policy decision.
Grasim Industries advanced 1.76% after the company's board approved capex of ₹3,094 crore for expanding Lyocell capacity at Harihar, Karnataka. The expansion will consist of 2 lines of 55K TPA (150 Tons per day) each for Phase II Lyocell capacity. Interarch Building Solutions rose 0.44% after securing a domestic order worth approximately ₹58 crore for the design, engineering, manufacturing, supply and erection of a pre-engineered steel building system. Rate-sensitive sectors continued to lead the market recovery, with the Nifty Financial Services index advancing 1.2% and the Realty index rising 1.4% as investors welcomed the central bank's decision to refrain from further policy tightening. According to latest reports, 12 of the 16 major sectoral indices were trading higher, with the broader markets also showing positive momentum.
In the commodities market, Brent crude for August 2026 settlement fell $1.26 cents or 1.34% to $92.99 a barrel. Global markets showed mixed performance with European stock markets struggling for direction as easing tensions in the Middle East supported sentiment, while investors turned their attention to an upcoming European Central Bank interest rate decision. China's exports jumped 19.4% YoY to a record $376.78 billion in May 2026, surpassing expectations and marking the fastest growth since February, driven by inventory build-up ahead of energy price pressures and strong demand for semiconductors and AI hardware. Overnight on Wall Street, the S&P 500 advanced 0.30% and closed at 7,405.73, while the Nasdaq gained 0.86% to end at 25,929.66, with chip stocks rebounding from Friday's rout.
