Dalal Street extended its winning streak to a fifth consecutive session on Thursday as late buying in banking and financial stocks helped benchmark indices overcome weakness in information technology shares.

Lower crude oil prices following progress on the US-Iran peace deal and optimism surrounding the India-UK Free Trade Agreement (FTA) supported sentiment, while IT stocks remained under pressure after the US Federal Reserve's hawkish remarks signalled the possibility of a rate hike later this year, with investors watching for Accenture Q3 results.

After a subdued start and range-bound trading for most of the session, the Sensex rose 254.36 points or 0.33 per cent to close at 77,409.98, while the Nifty 50 gained 82.30 points or 0.34 per cent to settle at 24,168.00. Both benchmarks soared 4.3-4.8 per cent in the last five sessions.

Today, Bank Nifty advanced 0.66 per cent to close at 57,963.80, while PSU Bank, private bank and financial indices also ended higher.

Vinod Nair, Head of Research at Geojit Investments, said domestic equities traded within a range as optimism surrounding the US-Iran peace deal was tempered by hawkish remarks from the US Federal Reserve. He added that a sustained decline in crude oil prices and moderation in Indian bond yields could offset inflationary concerns in the second half of FY27, with market participants awaiting further clarity on the peace agreement.

“Banking stocks outperformed, supported by expectations of strong credit growth and the sector’s attractive valuations,” Nair added.

Vikram Kasat, Head Advisory at PL Capital, said strong domestic buying helped offset initial caution triggered by the US Fed’s stance, with heavyweights such as HDFC Bank and Reliance Industries providing support to the benchmarks.

Nifty IT index shed over 1 per cent in today’s session. The sector, which derives a significant portion of its revenue from the US market, came under pressure after the Fed’s hawkish commentary heightened concerns over a higher-for-longer interest rate environment.

Broader markets outperform; Infosys, TCS, Tech Mahindra top losers

Broader markets outperformed the benchmark indices, with both midcap and smallcap indices gaining around 0.4 per cent. The India VIX declined nearly 4 per cent and slipped below the 13 mark.

Sectorally, healthcare and realty stocks posted notable gains, while metal and IT were the only major indices to end lower.

Among the Nifty 50 constituents, Max Healthcare, IndiGo, Adani Enterprises, Trent, Bharat Electronics, HDFC Bank and SBI led the gainers. On the losing side were Infosys, Tata Consumer Products, Tech Mahindra and TCS.

Among banking counters, HDFC Bank, SBI, Yes Bank, Union Bank and IDFC First Bank led the gains.

Market breadth remained firmly positive. Of the 4,419 stocks traded on the BSE, 2,419 advanced, 1,814 declined and 186 remained unchanged. As many as 162 stocks hit their 52-week highs, while 46 touched fresh 52-week lows.

In the broader market, Nykaa, ICICI AMC, Adani Total Gas and BHEL rose between 3 per cent and 6 per cent in the midcap segment. Among smallcaps, Redington, Five-Star Business Finance, Star Health and CDSL gained 4-9 per cent, while IDBI Bank and IFCI declined up to 8 per cent.

On the BSE, Indo Count Industries, Bata India and KPR Mill emerged as the standout performers, rallying 14-19 per cent during the session.

Lower crude, FTA optimism keep sentiment buoyant

Investor sentiment remained supported by easing oil prices amid expectations of smoother crude supplies following progress on the US-Iran peace agreement. Optimism surrounding the implementation of the India-UK FTA also continued to aid market sentiment.

Ponmudi R, CEO of Enrich Money, said improving global risk sentiment and lower energy costs outweighed concerns stemming from the Federal Reserve’s cautious policy outlook. He noted that expectations of the reopening of the Strait of Hormuz have strengthened hopes of improved oil flows, reducing pressure on energy markets.

The rupee also extended its gains, supported by easing geopolitical tensions and lower concerns over India’s import bill and inflation outlook.

Global markets were mixed. Asian equities ended on a mixed note, with Japan’s Nikkei 225 and South Korea’s Kospi posting gains, while China’s Shanghai Composite and Hong Kong’s Hang Seng closed lower. European markets traded mixed.

Overnight, Wall Street ended sharply lower after the FOMC outcome. The Dow Jones, S&P 500 and Nasdaq each declined around 1 per cent, with the tech-heavy Nasdaq falling 1.3 per cent.

However, the sentiment remains supportive, with US Dow Futures and European indices trading positive, Sunny Agrawal, Head - Fundamental Research at SBI Securities, said.

Looking ahead, investors will closely track monsoon progress, inflation trends and foreign fund flows for further market direction. Ankur Punj, Managing Director and Business Head at Equirus Wealth, said foreign institutional investor activity and the progress of the monsoon could remain key factors influencing sentiment in the medium term.

On Wednesday, Sensex climbed 347.14 points to end at 77,155.62, and Nifty 50 gained 96.55 points to 24,085.70.

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Published on June 18, 2026