Nifty tad above 23,750; private bank shares rally

The domestic equity benchmarks traded with modest gains in mid-afternoon trade, supported by value buying and optimism surrounding easing geopolitical tensions and ongoing US-China trade talks. Investors also remained focused on the ongoing Q4 earnings season. Nifty traded tad above the 23,750 mark. Private bank shares advanced after witnessing declines in the past four trading sessions.

At 14:30 IST, the S&P BSE Sensex advanced 1,001.02 points or 1.34% to 75,610. The Nifty 50 index added 342.75 points or 1.46% to 23,755.85.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index climbed 1.05% and the BSE 250 SmallCap Index jumped 0.30%.

The market breadth was positive. On the BSE, 2,093 shares rose and 2,027 shares fell. A total of 170 shares were unchanged.

Economy:

India?s wholesale price inflation accelerated sharply to 8.30% YoY in April from 3.88% in March, surpassing market expectations of 4.4% and marking the highest level since October 2022. The sharp rise was primarily driven by higher fuel, manufacturing and food prices amid the impact of the Middle East crisis on global energy markets.

Fuel inflation surged 24.71% in April, the fastest pace since September 2022, led by a sharp increase in petrol prices (32.40% versus 2.50% in March) and high-speed diesel (HSD) prices (25.19% versus 3.26%). LPG prices also rebounded, rising 10.92% compared with a decline of 1.54% in March.

Meanwhile, manufacturing inflation accelerated to 4.62% from 3.39%, the highest since September 2022, driven by higher prices of textiles, leather, chemicals and chemical products. Food inflation rose to a 12-month high of 2.31%, mainly due to higher prices of eggs, meat & fish, and milk.

Buzzing Index:

The Nifty Private Bank index rose 1.69% to 26,292.15. The index tanked 3.5% in the past four trading sessions.

RBL Bank (up 3.71%), HDFC Bank (up 3.34%), Bandhan Bank (up 2.05%), IndusInd Bank (up 1.98%), Kotak Mahindra Bank (up 1.56%), ICICI Bank (up 1.28%), Yes Bank (up 0.5%), Axis Bank (up 0.32%), IDFC First Bank (up 0.22%) and Federal Bank (up 0.02%) jumped.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.09% to 7.039 compared with the previous session close of 7.045.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee hovered at 95.8225 compared with its previous close of 95.6650. Earlier in the session, the rupee hit a fresh record low of 95.9625 against the U.S. dollar amid elevated crude oil prices and sustained foreign portfolio investor (FPI) outflows, which continued to pressure the country?s external balances.

MCX Gold futures for 5 June 2026 settlement shed 0.05% to Rs 1,62,112.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 98.50.

The United States 10-year bond yield shed 0.40% to 4.456.

In the commodities market, Brent crude for July 2026 settlement rose 70 cents or 0.66% to $106.33 a barrel.

Stocks in Spotlight:

NLC India surged 14.41% after the company?s consolidated net profit soared 189.12% to Rs 1393.46 crore on 31.45% jump in revenue from operations to Rs 5042.46 crore in Q4 FY26 over Q4 FY25.

Oil India rose 2.96% after its standalone net profit jumped 12.44% to Rs 1,789.53 crore in Q4 FY26, compared with Rs 1,591.48 crore in Q4 FY25. PAT increased, supported by higher crude oil production (up 6%) and improved crude price realisation, which rose 5% to $77.89 per barrel from $74.46 per barrel in Q4 FY25. Revenue from operations (excluding excise duty) rallied 8% year-on-year (YoY) to Rs 5,960.59 crore for the quarter ended 31 March 2026.

Nitco declined 1.58% after the company?s consolidated net loss widened to Rs 7.78 crore in Q4 FY26 compared with net loss of Rs 2.90 crore in Q4 FY25. Total revenue from operations jumped 62.85% to Rs 152.32 crore in Q4 FY26 as against Rs 93.53 crore in Q4 FY25.

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