Nifty fails to hold 24,800 level; PSU Bank shares under pressure

The key benchmarks indices continued to trade near flat line with minor cuts in mid-morning trade, amid ongoing escalating geopolitical tensions between Israel and Iran. Further impacting sentiment was the US Federal Reserve's decision to hold interest rates, with the central bank projecting elevated inflation and slower economic growth ahead. Market direction will likely continue to be shaped by these geopolitical developments, with investors closely tracking crude oil prices and broader global events. The Nifty traded below the 24,800 level.

PSU Bank shares witnessed selling pressure for third consecutive trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex declined 45.93 points or 0.09% to 81,370.43. The Nifty 50 index shed 18.60 points or 0.07% to 24,793.45.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.74% and the S&P BSE Small-Cap index shed 0.70%.

The market breadth was weak. On the BSE, 1,204 shares rose and 2,452 shares fell. A total of 179 shares were unchanged.

In commodities, Brent crude (August 2025 contract) rose 3 cents or 0.04%, to $76.73 per barrel amid escalating geopolitical tensions.

IPO Update:

The initial public offer (IPO) of Arisinfra Solutions received bids for 55,33,798 shares as against 1,30,84,656 shares on offer, according to stock exchange data at 11:24 IST on Thursday (19 June 2025). The issue was subscribed 0.42 times.

The issue opened for bidding on Wednesday (18 June 2025) and it will close on Friday (20 June 2025). The price band of the IPO is fixed between Rs 210 and 222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index fell 1.78% to 6,751.95. The index declined 2.89% for the three consecutive trading sessions.

Bank of India (down 2.75%), Indian Bank (down 2.09%), Canara Bank (down 1.94%), Bank of Baroda (down 1.92%) and UCO Bank (down 1.65%), Union Bank of India (down 1.6%), Bank of Maharashtra (down 1.58%), Punjab & Sind Bank (down 1.39%), Punjab National Bank (down 1.37%) and Indian Overseas Bank (down 1.27%) tumbled.

Stocks in Spotlight:

AAVAS Financiers added 1.13% after its board's executive committee has approved raising up to Rs 200 crore through a private placement of non-convertible debentures (NCDs).

Garware Technical Fibres declined 1.32%. The company announced that it has incorporated of a wholly owned subsidiary (WOS), Garware Technical Fibres AS (GTF AS), in Norway.

Markolines Pavement Technologies gained 4.58% after the company announced that it has secured a maintenance contract worth Rs 18.88 crore from Varanasi-Aurangabad NH-2 Tollway.

Global Markets:

US Dow Jones futures were down 82 points in early trade. Wall Street will be shut on Thursday for the Juneteenth holiday, with regular trading set to resume Friday.

Most Asian markets declined on Thursday as investors digested the US Federal Reserve's widely expected decision to keep interest rates unchanged. Adding to the cautious mood, ongoing tensions between Israel and Iran continue to weigh on sentiment.

Eyes are also on the central bank decisions from Taiwan and the Philippines, due later today.

As expected, the Fed held its benchmark rate steady at 4.25%-4.5% on Wednesday, marking no change since December. Fed Chair Jerome Powell indicated the committee would wait to assess the inflationary impact of President Trumps tariff measures before considering any policy shifts.

Despite the hawkish pause, the Fed still pointed to two rate cuts by the end of the year.

Geopolitical concerns remain front and center. Investor nerves were further rattled after Iran's Supreme Leader Ayatollah Ali Khamenei dismissed President Trump's calls for unconditional surrender. His remarks, delivered via a televised statement on Wednesday, were his first since Friday, when Israel escalated its offensive against Iran.

Back on Wall Street, US equities ended mixed on Wednesday. The Dow slipped 0.10%, the S&P 500 edged down 0.03%, while the Nasdaq bucked the trend with a 0.13% gain.

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