Sensex gained 254 points; Nifty closed above 24,150.
Banking stocks outperformed, while IT shares remained under pressure.
Rupee strengthened to 94.33 as crude prices continued falling.
Indian equity benchmarks ended in positive territory on June 18 after a volatile trading session, with banking stocks leading gains and the Nifty closing above the 24,150 mark for the first time this year. Falling crude oil prices, a strengthening rupee and easing concerns over India's external balances helped support sentiment, although gains remained capped by weakness in information technology stocks following hawkish signals from the US Federal Reserve.
At close, the Sensex rose 254.36 points, or 0.33%, to settle at 77,409.98, while the Nifty gained 82.30 points, or 0.34%, to end at 24,168. About 2,280 shares advanced, 1,772 declined and 169 remained unchanged.
1 June 2026
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Among Nifty constituents, Max Healthcare, InterGlobe Aviation, Trent, Bharat Electronics and Adani Enterprises were the top gainers. Infosys, Maruti Suzuki, Tech Mahindra, Tata Consumer Products and TCS ended among the biggest losers.
The broader market also remained firm, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.4% each.
Banking Stocks Outperform, IT Remains Under Pressure
Sectorally, most indices ended higher. Media, pharma, PSU banks, private banks and realty indices gained around 0.5% each. Banking shares outperformed amid expectations of strong credit growth and attractive valuations.
In contrast, the IT index remained under pressure after the US Federal Reserve signalled the possibility of another rate hike in 2026, prompting investors to reassess valuations in technology stocks.
Vinod Nair, Head of Research at Geojit Investments, said domestic equities traded within a range while maintaining a positive bias as optimism surrounding the US-Iran peace agreement was partly offset by the US Fed's hawkish commentary.
"Energy-driven inflationary pressures may prompt central banks to consider rate hikes in the latter half of the year, leading investors to adopt a cautious stance. However, the sustained decline in crude oil prices and moderation in Indian bond yields could offset inflationary concerns in the second half of FY27," Nair said.
Rupee Extends Winning Streak
The Indian rupee strengthened for a fifth consecutive session, appreciating 20 paise to close at 94.33 against the US dollar compared with the previous close of 94.53.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, the rupee has recovered significantly from the 95.75 level to around 94.32, supported by falling crude oil prices and improving sentiment around the ongoing US-Iran negotiations.
He said the reopening of the Strait of Hormuz and expectations of smoother crude oil supplies have eased concerns over India's import bill, providing a strong tailwind for the domestic currency.
Trivedi added that the rupee remains technically well supported, with the near-term trading range seen between 94.00 and 94.75. A sustained move below 94.00 could pave the way for further appreciation.
Asian markets delivered a mixed performance. South Korea's Kospi rose 2.25%, while Japan's Nikkei 225 gained 1.65%. However, Hong Kong's Hang Seng fell 1.59%, Australia's ASX 200 declined 0.62% and Shanghai slipped 0.43%.
Investors globally remained cautious after the US Federal Reserve maintained a hawkish tone despite leaving interest rates unchanged, reinforcing expectations that inflation risks remain elevated.
Technical Outlook Suggests Consolidation Ahead
Market experts believe the near-term trend remains positive, though some consolidation cannot be ruled out after the recent rally.
Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty closed above its previous swing high, signalling improving market sentiment.
"The outlook remains positive, with the index sustaining above its critical moving averages and the RSI in a bullish crossover. However, the Nifty has rallied nearly 1,000 points in just six sessions, making a phase of consolidation likely before the next directional move," he said.
According to De, the Nifty may oscillate within the 23,800-24,200 range over the next few sessions. A decisive breakout above 24,200 could trigger the next leg of the rally, while immediate support is placed at 24,000, followed by 23,800.
