The rebound in benchmark indices comes after Sensex and Nifty fell by 893 points and 279 points on Tuesday after seven straight sessions of gains exceeding 4 per cent.
Equity markets staged a smart recovery on the back of positive signals including the slide in crude oil prices and RBI dousing the fear of possible rate hike to control soaring inflation.
The bellwether BSE Sensex gained by 790 points to 76,991, while Nifty was up by 198 points to 24,022 on Wednesday as the RBI statement gave hopes that the lower interest rate regime to support corporate earning in the coming days.
The rebound in benchmark indices comes after Sensex and Nifty fell by 893 points and 279 points on Tuesday after seven straight sessions of gains exceeding 4 per cent.
Rate hikes
In an interview to a private channel, Sanjay Malhotra, Governor, RBI said it was premature to discuss domestic rate hikes.
“If it was so certain that we are going to hike in the coming months, then we would have changed the stance from neutral to restrictive, right? We did not do that,” he said.
“We did not do that precisely because there is elevated uncertainty,” he added.
Prakash Bulusu, Joint CEO, IIFL Capital, said the easing of crude oil prices following the US-Iran peace breakthrough, coupled with prospects of an India-US trade agreement and reassurance from the RBI on the interest-rate outlook, has created a favourable backdrop for risk assets.
“While near-term volatility cannot be ruled out, particularly given elevated global valuations and evolving macro data, the key takeaway is that India’s structural growth story remains intact,” he said.
Ankur Punj, MD & Business Head at Equirus Wealth said markets rebounded sharply despite mixed global cues, as investors cheered the news of several stranded ships passing through the Strait of Hormuz, which was reflected in a sharp fall in the crude oil prices. The recovery was led by heavy buying in banking and IT stocks, even as most broader indices ended in the red, indicating the undertone remains cautious, he said.
Trade deal talks
The optimism over advancing US-India trade deal talks, coupled with FIIs turning net buyers of local equities over the past few sessions is also giving markets a fillip, he added.
Meanwhile, domestic institutions on Wednesday were net buyers to the tune of ₹3,637 crore while FPIs were net sellers at ₹1,843 crore. Government securities (G-Secs) rallied and yield of the new 10-year benchmark G-Sec (6.94 per cent GS2036) softened 5 basis points to close at 6.78 per cent against the previous close of 6.83 per cent. Price of this security rose 35 paise.
Yield and price of a bond are inversely co-related and move in opposite directions.
Gold prices remained under pressure, falling another ₹2,000 to ₹144,600, while US COMEX Gold dropped below $4,000 an ounce, before recovering to $4,005, down over 2.5 per cent.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said the weakness in gold prices was driven by a broader liquidity event triggered by sharp profit booking and sell-offs in AI and technology stocks.
As investors face losses in equities, many are selling liquid assets such as gold to raise cash, meet margin requirements, and reduce leverage, he said.
Crude oil prices fell below $73 per barrel as tankers resumed transit through the Strait of Hormuz, supported by US and Iran peace talks. The International Maritime Organization received security assurances enabling vessels to leave the Persian Gulf. Additionally, the IEA reported UAE oil exports rebounded in early June to nearly 85 per cent of prior conflict levels. A new 60day US waiver also permits global buyers to purchase Iranian crude and refined products.
Published on June 24, 2026
