Benchmarks end higher on hopes of US-Iran peace deal; private banks rally

The key equity indices ended with modest gains on Friday amid positive global cues and hopes of a potential peace agreement between the US and Iran. The Nifty 50 ended above 23,700 mark after touching an intraday high of 23,835.65. Investor sentiment was supported by Brent crude oil prices easing to around the $105-per-barrel mark from recent highs near $110. The index traded higher for most of the session but pared some gains in late trade amid profit booking at higher levels. Gains were led by private banks and financial stocks, while healthcare and pharma shares witnessed selling pressure. However, overall market sentiment remained cautious amid persistent foreign institutional investor outflows and concerns over inflation and global bond yields.

The S&P BSE Sensex advanced 231.99 points or 0.31% to 75,415.35. The Nifty 50 index added 64.60 points or 0.27% to 23,719.30.

In the broader market, the BSE 150 MidCap Index rose 0.11% and the BSE 250 SmallCap Index declined 0.26%.

The market breadth was positive. On the BSE, 2,168 shares rose and 2,027 shares fell. A total of 174 shares were unchanged.

Economy:

The Reserve Bank of India's Central Board on Friday approved a surplus transfer of Rs 2.87 lakh crore to the Central Government for FY26, marking a 6.6% increase over the Rs 2.69 lakh crore transferred in FY25. The decision was taken at the 623rd meeting of the RBI's Central Board chaired by Governor Sanjay Malhotra in Mumbai. The board also reviewed domestic and global economic conditions and approved the central bank's annual accounts for FY26. RBI's gross income rose 26.42% year-on-year, while net income before risk provisions and transfers to statutory funds increased to Rs 3.96 lakh crore from Rs 3.13 lakh crore in FY25. Meanwhile, the RBI's balance sheet expanded 20.61% YoY to Rs 91.97 lakh crore as of 31 March 2026.

Numbers to Track:

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.6825 compared with its close of 96.3650 during the previous trading session.

The yield on India's 10-year benchmark federal paper declined 0.52% to 7.081 compared with the previous session close of 7.118.

MCX Gold futures for 5 June 2026 settlement shed 0.30% to Rs 159,127.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 99.30.

The United States 10-year bond yield shed 0.68% to 4.559.

In the commodities market, Brent crude for July 2026 settlement rose $2.32 or 2.26% to $104.90 a barrel.

Global Markets:

US Dow Jones futures were up around 151 points, indicating a positive start for Wall Street later in the day.

European shares traded higher on Friday as investors weighed mixed signals surrounding diplomatic efforts to end the Iran conflict. US Secretary of State Marco Rubio said discussions between Washington and Tehran had shown 'good signs' of progress, while media reports citing a senior Iranian official indicated that gaps in negotiations had narrowed.

However, sentiment remained cautious after separate media reports stated that Iran's Supreme Leader had directed that no enriched uranium should leave the country, highlighting a key sticking point in negotiations with US President Donald Trump, who has made dismantling Iran's nuclear programme a central objective.

In the UK, retail sales declined 1.3% month-on-month in April after rising 0.6% in March, with fuel sales falling more than 10% as consumers curtailed spending amid volatile fuel prices linked to Middle East tensions. Meanwhile, the GfK Consumer Confidence Index improved to -29.8 in June 2026 from a revised -33.1 in May.

The UK Office for National Statistics said public sector net borrowing rose to 24.3 billion pounds in April 2026, up 4.9 billion pounds from a year ago. Higher market borrowing costs pushed debt interest payments to a record 10.3 billion pounds for the month.

Asian shares ended higher as investors monitored US-Iran diplomatic developments aimed at easing tensions in the Middle East. However, reports that Tehran intends to retain its enriched uranium stockpile domestically could complicate negotiations with Washington.

On the economic front, Japan's core inflation eased more than expected in April to its lowest level since March 2022, weakening expectations of an early interest rate hike by the Bank of Japan. Core inflation, excluding fresh food prices, stood at 1.4%, down from 1.8% in March.

Overnight on Wall Street, the Dow Jones Industrial Average closed at a record high on Thursday as investors tracked fluctuations in oil prices and Treasury yields amid hopes of progress in the Middle East conflict. The Dow gained 276.31 points, or 0.55%, to close at 50,285.66, while the S&P 500 rose 0.17% to 7,445.72 and the Nasdaq Composite added 0.09% to end at 26,293.10.

Stocks in Spotlight:

The Nifty Private Bank index jumped 1.49% to 26,376.20, led by Axis Bank (+2.69%), RBL Bank (+2.13%) and ICICI Bank (+1.96%). Bandhan Bank gained 1.79%, while Yes Bank (+1.44%), HDFC Bank (+1.30%) and IndusInd Bank (+1.13%) also advanced. Federal Bank (+1.06%), Kotak Mahindra Bank (+0.98%) and IDFC First Bank (+0.95%) traded higher as well.

Life Insurance Corporation of India advanced 1.59% after the company reported 23.3% rise in consolidated net profit to Rs 23,467.18 crore in Q4 FY26 from Rs 19,038.67 crore in Q4 FY25. Total income for the period under review was Rs 2,79,909.41 crore, up 14.7% YoY.

Gail (India) added 3.12 %. The company reported a 38.40% drop in standalone net profit to Rs 1,262.18 crore on a 2.54% fall in revenue from operations to Rs 34,797.03 crore in Q4 FY26 over Q4 FY25.

3M India rallied 3.46% after the company reported a 201.73% year-on-year jump in net profit to Rs 215.34 crore in Q4 FY26, compared with Rs 71.37 crore in the same quarter last year. The company's revenue from operations rose 16.77% YoY to Rs 1,399.24 crore in the quarter ended 31 March 2026. The board recommended a dividend of Rs 506 per equity share on face value of Rs 10 each. It comprises a final dividend of Rs 160 and a special dividend of Rs 346 per share.

Maruti Suzuki India shed 0.18%. The country's largest carmaker said prices of its models will be increased by up to Rs 30,000 due to sustained rise in input costs and continued inflationary pressures. The company said it has been taking several cost reduction measures over the past few months to minimise the impact of rising costs. However, the adverse cost environment has forced the company to pass on part of the increase to customers.

Laxmi Dental hit an upper limit of 20% after the integrated dental products company reported strong consolidated Q4 FY26 earnings, aided by robust growth across its dental laboratory and aligner businesses.

The company's consolidated profit after tax after share of profit/loss from joint ventures surged 136.1% YoY to Rs 10.09 crore in Q4 FY26 from Rs 4.27 crore in Q4 FY25. Revenue from operations rose 21.9% YoY and 12% QoQ to Rs 73.95 crore during the quarter.

Ramco Systems hit an upper circuit 20% after the company's consolidated net profit surged four-fold to Rs 25.04 crore in Q4 FY26, compared with Rs 5.30 crore in Q4 FY25. Revenue from operations jumped 19.39% YoY to Rs 185.36 crore in the quarter ended 31st March 2026.

Central Bank of India dropped 7.81% to Rs 31.27 after the government launched an offer for sale (OFS) to divest stake in the public sector lender. The total OFS size stands at 72.41 crore shares, equivalent to around 8% of the bank's total equity share capital. The government set a floor price of Rs 31 per share for the OFS, representing a discount of about 8.6% to the previous closing price of Rs 33.91.

On 22 May 2026, the non-retail portion of the OFS had received bids for 76.86 crore shares, translating into 235.88% subscription against the base non-retail offer size of 32.58 crore shares.

Quick Heal Technologies declined 7.06% after the company's consolidated net loss widened to Rs 19.94 crore in Q4 FY26 as against a net loss of Rs 3.25 crore reported in Q4 FY25. Revenue from operations declined 25.19% year on year (YoY) to Rs 48.73 crore in the quarter ended 31 March 2026.

VA Tech Wabag rose 1.48% after the company reported a 28.6% jump in consolidated net profit to Rs 128.30 crore on a 22.3% rise in revenue to Rs 1,414.4 crore in Q4 FY26 over Q4 FY25.

Powered by Capital Market - Live News