Benchmark indices Nifty and Sensex opened the session on a positive note on June 20, even as escalating tensions between Israel and Iran keep investors on edge. While US President Donald Trump has hinted at backing an Israeli offensive, his remarks suggesting any action is at least two weeks away have sparked hopes of a possible de-escalation. An uptick in bank, metal and auto stocks helped snap a three-day losing streak. The broader market rebounded after a brief dip, aligning with the overall positive momentum.

At about 9:50 am, the Sensex was up 324.38 points or 0.40 percent at 81,686.25, and the Nifty was up 99.20 points or 0.40 percent at 24,892.45. About 1819 shares advanced, 1059 shares declined, and 126 shares remained unchanged

Experts added that the current volatility has more to do with the conflict in the Middle East and suggest that if the resolution is achieved, market sentiment should hold up.

"The recent spike in crude oil is much lower than expected despite rising tensions.  Unless supply chains are severely disrupted—for example, via the Strait of Hormuz— it is unlikely to see oil breaching extreme levels like $100 or $120 per barrel," Aishvarya Dadheech, Founder and CIO of Fident Asset Management, said. "A return to the $70–75 range seems more likely if tensions ease. In such a scenario, foreign institutional investor (FII) activity, which has recently been muted, could pick up again," he added.

NSE sectoral indices opened mostly in the green, with Nifty Realty topping the chart with a 1.40 percent gain, followed by Nifty PSU Bank, up 1.11 percent. Nifty Midcap 100 and Nifty Energy each rose 0.60 percent, while Nifty Metal, Infra, Oil & Gas, Auto, Bank, and FMCG saw modest advances. Nifty Smallcap 100 added 0.50 percent, and Pharma and Private Bank indices posted fractional gains. Nifty IT was flat, edging up just 0.05 percent. Meanwhile, India VIX declined sharply by 4.42 percent to 13.63, signalling easing market volatility.

Public sector project financing firms such as IREDA, PFC, REC, HUDCO and IRFC rose up to 4 percent after the Reserve Bank of India (RBI) finalised the new project financing guidelines. On June 19, the RBI released the final directions on project finance norms, asking lenders to maintain general provision of 1.25 percent on Commercial Real Estate (CRE), and 1 percent each on Commercial Real Estate-Residential Housing (CRE-RH) and other portfolio during the construction phase.

Sun TV shares crashed 4 percent after a feud erupted between the Maran brothers over the shareholding of the media network. Moneycontrol reported that the former Union Minister and DMK MP Dayanidhi Maran sent a legal notice to his brother Kalanithi Maran. The notice alleges that Kalanithi, chairman of the Chennai-based media conglomerate and Dayanidhi’s billionaire brother, engaged in what it describes as “fraudulent".

Shares of Tata-owned apparel giant Trent Ltd rose after notching a third bullish call in as many days, with HSBC initiating coverage with a ‘buy’ rating. The brokerage sees strong growth ahead, driven by the rapid expansion of its value fashion brand Zudio. With a price target of Rs 6,700, analysts are implying an upside potential of 17 percent from the last close at Rs 5,723 on the NSE.

From a technical perspective, Nifty remains trapped in a tight consolidation phase, with neither bulls nor bears able to assert dominance. The daily RSI remains muted at 51, failing to reclaim the bullish 60 mark, which highlights the ongoing range-bound momentum. A close below 24,700 could tilt the trend to the downside, whereas a breakout above 25,000 may reignite bullish momentum. In the near term, the index is likely to remain within the 24,600 to 25,000 band, and a meaningful directional move is expected only after a decisive breakout from this range.

Jio Financial Services, M&M, Eternal, Shriram Finance and Coal India were the top gainers on the Nifty. Laggards on the index included Hero MotoCorp, Bajaj Auto, Bajaj Finance, Kotak Mahindra Bank, and Wipro.