Investor sentiment was further strengthened after the RBI introduced a US Dollar-Rupee forex swap facility for eligible external commercial borrowings (ECBs) raised by public sector undertakings and overseas foreign currency borrowings raised by authorised dealer banks. The central bank also launched a forex swap facility for fresh Foreign Currency Non-Resident (Bank) FCNR(B) deposits mobilised by banks. The facility covers FCNR(B) deposits with maturities ranging from three to five years and is aimed at attracting foreign currency inflows into the country.

Despite the positive momentum, market participants are expected to closely monitor energy and crude oil prices, the inflation trajectory, and movements in gold prices for further market direction. Nifty ended above 23,600 level

In the week ended on Friday, 12 June 2026, the S&P BSE Sensex surged 1,284.61 points or 1.73% to settle at 75,527.95. The Nifty 50 index jumped 256.20 points or 1.10% to settle at 23,622.90. The BSE 150 Mid-Cap index shed 0.34% to close at 16,226.22. The BSE 250 Small-Cap added 0.19% to end at 6,798.01.

Weekly Index Movement:

The domestic equity benchmarks ended sharply lower on Monday, extending losses for a second consecutive session. Sentiment weakened amid a broad selloff across Asian market, rising crude oil prices and escalating tensions in West Asia. The S&P BSE Sensex tanked 719.08 points or 0.97% to 73,524.26. The Nifty 50 index lost 243.70 points or 1.04% to 23,123. In two consecutive trading sessions, the Sensex declined 1.13% while the Nifty 50 fell 1.38%

The key equity benchmarks rebounded on Tuesday, supported by lower crude oil prices, positive global cues and strong gains in banking stocks. The S&P BSE Sensex advanced 394.50 points or 0.54% to 73,918.76. The Nifty 50 index rose 119.10 points or 0.52% to 23,242.10. The Nifty fell 1.25% in the previous two sessions.

The benchmark indices erased most of their intraday gains on Wednesday as profit booking emerged at higher levels. Sentiment was weighed down by continued foreign institutional investor (FII) selling, weak global cues and renewed geopolitical tensions in West Asia. The S&P BSE Sensex advanced 64.42 points or 0.09% to 73,983.18. The Nifty 50 index fell 27.15 points or 0.12% to 23,214.95.

The benchmark indices erased early gains and ended lower on Thursday as investors turned cautious amid escalating US-Iran tensions, persistent foreign institutional investor (FII) selling and higher-than-expected US inflation data. The S&P BSE Sensex declined 150.63 points or 0.20% to 73,832.55. The Nifty 50 index lost 53.35 points or 0.23% to 23,161.60.

The key domestic indices ended with major gains on Friday, supported by hopes of a U.S.-Iran peace deal, easing crude oil prices and positive global cues that boosted investor sentiment. The S&P BSE Sensex jumped 1,695.40 points or 2.30% to 75,527.95. The Nifty 50 index rose 461.30 points or 1.99% to 23,622.90.

RBI's Forex Swap Measures:

The RBI detailed two dollar-rupee swap facilities announced by Governor Sanjay Malhotra in the monetary policy statement on 5 June 2026.

Under the first scheme, the RBI introduced a US Dollar-Rupee forex swap facility for eligible ECBs raised by public sector undertakings and overseas foreign currency borrowings raised by authorised dealer category-I banks. The facility will be available for borrowings with a minimum maturity of three years and will remain open for eligible inflows received up to 31 December 2026.

Banks can sell US dollars to the RBI and simultaneously agree to buy them back at the end of the swap period. The swap will be priced at a fixed rate of 1.5% per annum, compounded semi-annually, with a maximum tenor of five years.

In a separate measure, the central bank launched a forex swap facility for fresh FCNR(B) deposits mobilised by banks. The facility covers deposits with maturities ranging from three to five years and will remain open for deposits raised up to 30 September 2026.

The FCNR(B) swap facility will be conducted at par, allowing banks to swap foreign currency inflows with the RBI while maintaining exposure to the underlying deposits. The scheme is expected to encourage foreign currency inflows and strengthen liquidity conditions.

Stocks in Spotlight:

Reliance Industries (RIL) rose 0.36%. The company announced a partnership with Meta Platforms to develop an AI-enabled data centre in Jamnagar, Gujarat. RIL said it will build a 168 MW data centre for Meta, with the facility expected to be delivered within two years. The agreement also includes an option to scale up capacity in the future.

Afcons Infrastructure rallied 2.37% after the company announced that it has received a Letter of Award (LoA) from Vadhvan Port Project (VPPL) for the construction of a breakwater at the upcoming Vadhvan Port in Maharashtra.

Zee Entertainment Enterprises declined 2.06% after the company’s board approved a proposal to raise a minimum of Rs 2,300 crore to support strategic and business initiatives. In an exchange filing on 10 June 2026, the company said its board approved raising capital in one or more tranches. The funds will be used to finance the company’s strategic and business plans.

Adani Ports and Special Economic Zone (APSEZ) fell 0.79%. The company said that it has secured a 10-year marine services contract for Argentina’s first liquefied natural gas (LNG) export project.

Grasim Industries shed 0.70% after the company’s board approved capex of Rs 3,094 crore for the expansion of Lyocell, third-generation Cellulosic Staple Fibre (CSF) capacity at Harihar, Karnataka.

PPAP Automotive surged 17.38% after the company announced a technology partnership with Hutchinson to manufacture advanced body sealing systems for the passenger vehicle segment in India. PPAP disclosed that it will leverage Hutchinson's advanced technologies, licensed know-how, and technical support to develop and produce automotive body sealing solutions for domestic vehicle manufacturers.

Nucleus Software Exports jumped 4.06% after the company announced a strategic partnership with Azentra Solusi Digital to further strengthen digital transformation capabilities for banks and financial institutions across Indonesia.

H G Infra Engineering added 2.41% after the company received the provisional completion certificate from Adani Road Transport for Ganga Expressway project in Uttar Pradesh (UP). The contract is valued at Rs 4,970.99 crore.

SML Mahindra advanced 2.01% after the company reported an 11.64% year-on-year increase in commercial vehicle (CV) sales to 1,678 units in May 2026, compared with 1,503 units sold in May 2025.

Global Markets:

Japan's economy grew 0.5% quarter-on-quarter in the first quarter of 2026, accelerating from 0.2% growth in the previous quarter and exceeding market expectations of 0.3%. Growth was supported by stronger consumer spending, increased public investment and resilient export demand, although business investment remained subdued amid higher interest rates and weaker corporate sentiment.

In China, consumer inflation remained steady at 1.2% year-on-year in May, slightly below expectations of 1.3%. Food prices continued to decline, while higher transportation costs supported non-food inflation. Core inflation eased to 1.1% from 1.2% in April. On a monthly basis, consumer prices fell 0.1%.

China's producer price inflation accelerated to 3.9% year-on-year in May, the fastest pace since July 2022. The increase was driven by higher energy and commodity prices, supply disruptions linked to the Iran conflict and efforts by Beijing to reduce excess industrial capacity.

China's exports rose 19.4% YoY to a record $376.78 billion in May 2026, exceeding market expectations and marking the fastest growth since February. Growth was driven by robust demand for semiconductors and AI-related hardware, as well as inventory build-up ahead of anticipated energy price pressures. For the January-May period, exports increased 15.5% YoY to $1.71 trillion.

Data released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. Producer Price Index (PPI) rose 6.5% year-on-year in May, accelerating from 5.7% in the previous month.

Meanwhile, the U.S. core Consumer Price Index (CPI), which excludes food and energy prices, increased 0.2% month-on-month in May, following a 0.4% rise in April.

The headline annual inflation rate in U.S, which includes all categories, climbed to 4.2% in May from 3.8% in April, marking its third consecutive monthly increase and surpassing the 4% level for the first time in three years, according to data released by the Labor Department on Wednesday.