Banking, Realty Stocks Power Markets Higher Even as IT Emerges Sole Sectoral Laggard

Mumbai, June 9: Indian equities ended higher on Tuesday as strong buying in banking, financial and realty stocks helped benchmark indices recover from the previous session’s losses, while information technology shares remained under pressure. 

The BSE Sensex rose 394.50 points, or 0.54%, to close at 73,918.76, while the NSE Nifty 50 gained 119.10 points, or 0.52%, to settle at 23,242.10. Market breadth remained firmly positive, with 2,694 stocks advancing against 1,343 declines. 

Banking Stocks Steal the Show 

Financials led the market rally after the Reserve Bank of India published detailed guidelines for a concessional forex swap facility for banks’ overseas foreign-currency borrowings announced last week as part of measures aimed at attracting foreign currency inflows and supporting the rupee. 

Nifty Bank rallied as investors saw favourable liquidity conditions ahead as the central bank published guidelines for implementing a concessional forex swap facility. Source: NSE 

The Nifty PSU Bank index surged 3.6%, making it the best-performing sectoral index of the day, while the Nifty Bank and Nifty Private Bank indices advanced 2% and 1.6%, respectively. 

State Bank of India emerged among the top gainers on the Nifty, while HDFC Bank, ICICI Bank, Axis Bank and Yes Bank also attracted strong buying interest.  

State Bank of India share price gained 2.1% after Chairman C.S. Setty told Moneycontrol that the lender plans to take SBI General Insurance public, boosting sentiment around the stock on expectations of value creation through the insurance subsidiary’s listing. 

Yes Bank ended up among the most traded shares by volume today on NSE, the share rising over 1%.  

Realty Extends Winning Run 

Real estate stocks also witnessed healthy buying, with the Nifty Realty index gaining 1.6%. 

Shares of DLF, Godrej Properties, Oberoi Realty and Prestige Estates advanced as investors continued to favour rate-sensitive sectors that stand to benefit from supportive liquidity conditions likely being created by the concessional forex swap facility announced last week and whose guidelines came out yesterday.  

DLF share price rose the most, jumping 2.5%, while Godrej Properties share price added 1.8%. Oberoi Realty rose 2%. 

Auto, Healthcare Join Rally 

Nifty Auto revved up as a pullback in oil prices excited stocks on the index. Source: NSE 

Automobile and healthcare stocks added to market gains, with Eicher Motors and Apollo Hospitals featuring among the top performers on the Nifty. 

InterGlobe Aviation was the biggest gainer on the benchmark index, benefiting from easing crude oil prices, which are positive for airline profitability. Jio Financial Services also saw strong buying interest, helping support gains in the broader financial space. 

IT Sector Bucks Trend 

Information technology stocks were the only major pocket of weakness. 

Nifty IT bled as positive developments surrounding H-1B visa fees in the United States did little to rescue sentiment. Source: NSE 

The Nifty IT index ended in the red despite positive developments surrounding H-1B visa fees in the United States. A U.S. federal judge invalidated President Donald Trump’s $100,000 fee on new H-1B visa applications for highly skilled foreign workers. The proposed fee had raised concerns about higher hiring costs for Indian IT companies and the potential for slower revenue growth in the U.S., their largest market. 

But all that didn’t matter as investors remained cautious on export-oriented technology companies amid concerns about global growth and corporate technology spending. 

Tech Mahindra was among the top Nifty losers, while weakness in other frontline IT names weighed on the sector. 

Energy, Utilities Under Pressure 

Energy and utility stocks also lagged the broader market. ONGC, NTPC and Power Grid Corporation finished among the top losers on the Nifty as investors assessed the impact of fluctuating crude prices and broader sector-specific concerns. 

Midcaps, Smallcaps Outperform 

The rally extended beyond large-cap stocks, with broader markets outperforming benchmark indices. The Nifty Midcap 100 index gained 1.3%, while the Nifty Smallcap 100 index climbed 1.7%. 

The strong performance across sectors, led by banks and real estate, suggests investors remain constructive on domestic growth-linked themes despite global uncertainties. With market breadth remaining healthy and rate-sensitive sectors attracting fresh inflows, Tuesday’s session marked a broad-based recovery for Indian equities. 

Source

•  NSE