The Indian stock market closed Tuesday’s session with solid gains, largely driven by financial stocks after the RBI detailed a concessional forex swap facility for overseas borrowings. A decline in crude oil prices also supported sentiment, helping the frontline indices snap a two-day losing streak.
The Nifty and Sensex ended the session higher by 0.61% and 0.55%, respectively, while the broader markets outperformed the benchmark indices. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained 1.5% and 1.8%, respectively.
Among sectoral indices, the Nifty PSU Bank index led the rally with a sharp 3.6% surge, while the Nifty Realty, Nifty Chemicals, and Nifty Auto indices also gained over 1%.
The Reserve Bank of India on Monday operationalised foreign currency liquidity measures by introducing special dollar-rupee swap facilities for Foreign Currency Non-Resident (FCNR) deposits and External Commercial Borrowings (ECBs) to encourage inflows and support the rupee.
In the Middle East, tensions eased after Iran’s military reportedly said it would halt offensive operations following an appeal from U.S. President Donald Trump. However, it warned that harsher attacks could follow if Israel resumed strikes on Lebanon.
Following the pause in attacks, crude oil prices retreated from recent highs, with Brent crude falling to $93.3 per barrel, compared with around $97 ahead of the Indian market close on Monday.
Although markets rebounded, the Nifty and Sensex are still trading with double-digit losses of 11% and 13.5%, respectively, in 2026, sharply underperforming their Asian peers, many of which have scaled multiple record highs.
