Sensex, Nifty Rebound: Geopolitical Ease, Soft Crude Boost Markets

Nifty, Sensex recover from losses to close higher as softer crude oil prices, easing West Asia tensions lift sentiment

Mumbai, June 9

The Nifty 50 index closed at 23,242.10, up 119.10 points or 0.52 per cent, while the BSE Sensex settled at 73,918.76, gaining 394.50 points or 0.54 per cent.

Market experts said domestic equities witnessed a recovery after the recent sharp correction as investors took comfort from signs of easing tensions between Iran and Israel and a moderation in crude oil prices.

Vinod Nair, Head of Research at Geojit Investments Limited, said, "Domestic markets are witnessing a mild recovery after the recent sharp decline, supported by a pause in Iran-Israel tensions and softer crude prices. However, sentiment remains fragile, with continued FII outflows and higher bond yields highlighting persistent concerns around evolving global macro dynamics."

He added that investors are closely watching upcoming US inflation data, which could influence expectations around the US Federal Reserve's policy path and global liquidity conditions.

"Focus is now on the upcoming US inflation data, which will be key in shaping expectations on Fed policy and global liquidity, especially given resilient US economic data. In the near term, markets are likely to remain volatile and range-bound, with investors staying cautious until clearer global cues emerge, even as Q4FY26 earnings were slightly better while the outlook for Q1FY27 remains weak," Nair said.

On the sectoral front, buying was visible across most segments. Nifty PSU Bank emerged as the top performer with a gain of more than 3 per cent. Nifty Private Bank rose 1.58 per cent, while Nifty Realty advanced 1.66 per cent.

Nifty Auto gained more than 1 per cent, Nifty FMCG climbed 0.76 per cent, Nifty Metal rose 0.56 per cent, Nifty Pharma added 0.62 per cent and Nifty Oil and Gas moved up 0.33 per cent. Only Nifty IT and Nifty Media closed in negative territory.

Supporting market sentiment, Brent crude oil prices declined by more than 2 per cent and were trading around USD 92 per barrel at the time of filing this report.

The Indian rupee also strengthened by 38 paise to Rs 95.32 per US dollar after the Reserve Bank of India announced that fresh FCNR(B) deposits would be exempt from CRR and SLR requirements until September 30 to boost foreign currency inflows.

Dilip Parmar, Research Analyst at HDFC Securities, said the Indian rupee appreciated as a recovery in risk-on sentiment was driven by a weaker greenback and declining crude oil prices amid hopes of easing geopolitical tensions. "Additionally, the resumption of inflows into the debt market, following recent RBI measures, provided further support."

In the precious metals market, gold prices remained under pressure and were trading at Rs 1,54,617 per 10 grams for 24 karat gold, while silver prices were largely flat at Rs 2,46,618 per kilogram.

Asian markets also witnessed positive momentum. Japan's Nikkei 225 index gained 1.88 per cent, Singapore's Straits Times rose 1.16 per cent, Taiwan's Weighted Index surged 2.69 per cent and South Korea's KOSPI index jumped 7.56 per cent. Hong Kong's Hang Seng Index was the only major regional index to close lower, ending down 0.33 per cent.

— ANI