New Delhi, June 9: Indian equity markets closed higher on Tuesday, supported by strong buying in PSU banking, financial services and automobile stocks during the final hours of trading, while easing geopolitical concerns in West Asia improved overall investor sentiment.
The benchmark Nifty ended the session at 23,242.10, up 119.10 points or 0.52 per cent. The Sensex also advanced 394.50 points, or 0.54 per cent, to settle at 73,918.76 after recovering momentum towards the close of trading.
Market participants remained cautious through much of the session before late buying emerged in key sectors, helping both indices finish in positive territory. Analysts attributed part of the optimism to improving global risk appetite following indications that diplomatic efforts are underway to ease tensions between Iran and Israel.
Comments by US President Donald Trump suggesting ongoing peace discussions with Iran after a pause in hostilities contributed to a more positive global market environment. The development encouraged investors to return to risk assets, including equities.
The rally was broader than the benchmark indices alone. Mid-cap and small-cap stocks outperformed the frontline indices, reflecting increased investor participation across market segments. The Nifty MidCap index rose 1.35 per cent, while the Nifty SmallCap index gained 1.69 per cent.
Among individual stocks, InterGlobe Aviation, Jio Financial Services and Eicher Motors emerged as some of the strongest performers within the Nifty index, contributing significantly to the day’s gains.
The banking sector was the standout performer. PSU bank stocks witnessed substantial buying interest, with the Nifty PSU Bank index surging more than 3 per cent. Investors appeared encouraged by expectations of improved credit growth and favourable interest rate conditions.
Other rate-sensitive sectors also attracted buyers. Realty, automobile and financial services stocks posted healthy gains as market participants positioned themselves for potential economic growth opportunities.
However, gains were not uniform across all sectors. Information technology and media stocks faced selling pressure and ended the session in negative territory. The weakness in IT stocks reflected concerns over global technology spending and mixed international market signals.
Market experts noted that technical indicators suggest the Nifty is approaching an important resistance zone. A sustained move above the 23,300 level could open the door for further gains towards the 23,450–23,550 range.
At the same time, analysts cautioned that the 23,100 level remains a key short-term support zone. Any decisive break below the psychologically significant 23,000 mark could trigger profit booking and potentially pull the index towards the 22,800–22,700 range.
Despite sectoral divergence, the overall market mood remained constructive, aided by stronger participation in broader markets and renewed confidence among investors following positive global developments.
The day’s performance indicates that investors continue to monitor both domestic economic indicators and international geopolitical developments closely. With global uncertainties easing and sector-specific buying emerging, market participants will be watching whether the momentum can be sustained in the coming sessions.
For now, Tuesday’s gains provided a positive finish for the market, with banking and financial stocks once again demonstrating their importance in driving benchmark indices higher.
