The Indian stock markets demonstrated strong recovery on Tuesday, June 9, with both benchmark indices rebounding significantly from previous session lows. According to latest data, the BSE SENSEX surged 394.50 points or 0.54% to close at 73,918.76, while the NSE NIFTY50 ended higher by 119.10 points or 0.52% at 23,242.10. Earlier in the day, the Sensex had advanced by as much as 0.7% to hit the session's peak of 74,035.41, while the Nifty reached the session's peak of 23,279.40. This marked a substantial recovery from Monday's sharp decline, when the Sensex had tumbled 719.08 points or 0.97% to settle at 73,524.26, and the Nifty had fallen 243.70 points or 1.04% lower at 23,123. The recovery was driven by a recovery in global equity markets and easing of hostilities between Israel and Iran, as per The Hindu BusinessLine reports, with recovery in Asian stock markets also improving investor sentiment. Additionally, the rupee strengthened 25 paise to close at ₹95.36 per dollar against the previous close of 95.71, further lifting market mood. As per CNBC TV18, the robust domestic inflows helped markets rebound from a two-session losing streak, with the recovery coinciding with gains in the currency market.
Domestic institutional investors remained aggressive buyers on Tuesday, investing over ₹6,100 crore in equities and helping benchmarks rebound from a two-session losing streak, even as foreign investors continued to pare holdings. According to provisional exchange data, DIIs pumped a net ₹6,159.48 crore into the market, purchasing shares worth ₹17,664.98 crore and selling equities worth ₹11,505.50 crore. In contrast, FIIs continued to trim holdings with net sales of ₹4,566.03 crore, buying shares worth ₹14,735.47 crore while selling ₹19,301.50 crore worth of equities. This extended the divergence between domestic and foreign investors, with DIIs having emerged as net buyers worth ₹5,165.24 crore on June 8, while FIIs sold shares worth ₹5,555.67 crore. As per CNBC TV18, despite persistent foreign selling, the continued appetite of domestic investors has emerged as a key support for Indian equities, helping absorb external shocks and stabilise market sentiment amid a volatile global backdrop.
The banking sector emerged as a key driver of Tuesday's market recovery, with NIFTY PSU Bank and NIFTY Bank among the top-performing sectoral indices during the afternoon session. This positive momentum was supported by the Reserve Bank of India's introduction of operational guidelines for US dollar-rupee forex swap facilities aimed at boosting foreign currency inflows and easing dollar liquidity conditions. Under this arrangement, banks can sell US dollars in multiples of USD one million to the RBI and simultaneously agree to buy the same amount at the end of the swap period. The central bank also provided CRR and SLR exemptions for eligible FCNR(B) deposits, a move seen improving liquidity and supporting banking sector margins. As per market analysts, this comprehensive liquidity support is designed to attract more long-term foreign capital into India by making FCNR deposits more attractive and liquid for banks, particularly benefiting large banking institutions. The Nifty Bank index surged 1,131 points, or more than 2%, to close at 55,195, leading the banking sector recovery. The strength in banking stocks came as investors returned to risk assets following a sharp improvement in global sentiment, with Bank Nifty rising more than 1% and all constituents trading in the green.
Several stocks emerged as key gainers during Tuesday's session, with InterGlobe Aviation (parent company of IndiGo), Jio Financial Services, SBI, Axis Bank and ICICI Bank emerging as the top gainers among Nifty 50 stocks. Titan, ONGC, NTPC, Power Grid and Eternal were among the top laggards. JSW Steel jumped 1% after announcing a 15% YoY jump in consolidated crude steel production at 22.9 lakh tonnes for May 2026, with higher production due to full operations of the Dolvi unit. Panacea Biotec rallied as much as 15.39% to hit a 52-week high of ₹638 after announcing the launch of the EU-funded DENSTAR project for dengue vaccine licensure in sub-Saharan Africa. Avenue Supermarts rose 1.5% after investing ₹149.99 crore in its subsidiary Avenue E-Commerce, while Polycab India's stock jumped 2.14% to hit an intraday high of ₹9,698 after announcing its ₹47 per share dividend issue with June 19 as the record date. Defence stocks witnessed strong buying interest, while IT and media stocks ended in the red amid concerns over slowing global technology spending and AI-led disruption in traditional outsourcing models.
The broader market indices significantly outperformed the headline indices, with the NSE Midcap gauge ending at 60,715.45, marking an 809.80-point or 1.35% jump. Top gainers included PI Industries (6.89%), Motilal Oswal Financial Services (5.64%), Bank of India (5.37%), GE Vernova T&D India (4.11%) and Indian Bank (4.03%). The NIFTY Smallcap index advanced by 300.15 points or 1.69% to close at 18,063.60, with Data Patterns leading gains at 10.82%, followed by Pine Labs (6.75%), Mangalore Refinery and Petrochemicals (6.50%), Ola Electric Mobility (5.78%) and IDBI Bank (5.43%). Market breadth remained firmly positive, with 2,782 stocks advancing, 1,423 declining and 193 remaining unchanged out of 4,398 traded stocks on the BSE. As many as 107 stocks hit their 52-week highs, while 81 touched 52-week lows, with eight stocks hitting upper circuit limits and five locked in lower circuit. The GIFT Nifty June 2026 futures currently traded 69.50 points higher, suggesting a positive opening for today's session.
