Bank stocks gained as much as 5% on Tuesday after the raft of measures introduced by RBI to help hedge foreign currency borrowings stoked investor optimism and led to traders covering some of their bearish bets.

Bank Nifty rose 2.1% to 55,194.50; and closed above 55,000 levels after two weeks while benchmark Nifty moved 0.5% higher on Tuesday. All 14 constituents of Bank Nifty moved higher on Tuesday. .

Bank of Baroda jumped 5.5% while Canara Bank climbed 4.5%. Punjab National Bank and Federal Bank advanced around 3.5%.

“The measures by RBI are likely to drive a healthy deposit base for banks and lead to cheaper cost of funds since the hedging cost on FCNRB is borne by the Central Bank while the hedging costs on ECB’s is subsidised,” said Dharmesh Kant, head of research, Cholamandalam Securities.

Last week, the RBI announced measures to boost foreign currency inflows and to support the rupee. The Central Bank offered concessional dollar-rupee swap facility to absorb the entire forex hedging costs for three-to-five-year Foreign Currency Non-Resident (FCNR[B]) deposits until October 16, 2026. In addition, it offered a concessional swap facility for eligible External Commercial Borrowings (ECBs) raised by public sector entities, fixing the hedging cost at 1.5% per annum.

This policy allows Indian banks to access low-cost global capital and alleviate domestic deposit crunches without bearing currency risk, said analysts. “The sudden fundamental clarity triggered massive technical short covering, catching derivative traders by surprise and sparking a rapid short squeeze since the Put-Call Ratio (PCR) had dropped into an oversold zone below 0.80 ahead of the news,” said Nishchal Jain, Quant Researcher, Share. Market by Phone Pe.
The high-volume breakout past 55,100 and decisive price action, shifts the market regime from “sell on rallies” to “buy on dips”, establishing 55,000 as a strong psychological support base- forming a high-conviction bullish view, he said.

IGO says spodumene production remains on track after reporting that a fire broke out at its new chemical-grade processing plant at the Greenbushes lithium operation.

Shares in the critical minerals miner slid in morning trade after reporting a fire had occurred at its $880 million Chemical Grade Plant 3 (CGP3) plant at the Greenbushes mine site yesterday.

IGO said the fire was extinguished and no injuries were sustained, and that its first and second chemical crushing and processing plants on site were unaffected by the blaze. 

The third chemical plant at the hard-rock lithium operation in the state’s South West falls under the ownership of Talison Lithium, in which IGO owns an indirect 25 per cent stake, alongside China’s Tianqi Lithium (26 per cent) and US major Albemarle Corporation (49 per cent).

CGP3 is the third chemical grade plant built at the Greenbushes operation, which is still ramping up after processing first ore in December last year.

It has a processing capacity of 2.4 million tonnes per annum to produce up to 500,000 tonnes per annum of lithium mineral concentrate. 

The market was told Talison Lithium had commenced a full investigation into the cause and damage from the incident on Tuesday.

IGO said Greenbushes production remained on track to meet its FY26 guidance of between 1,375 million and 1,425 million tonnes of spodumene concentrate.

The fire at the new plant represents another setback for the critical minerals miner, which has been grappling with challenges at its co-owned Kwinana lithium hydroxide plant.

That downstream processing plant is operating at about 50 per cent nameplate capacity, which was an improvement when reported in the March quarter.

IGO and joint venture partner in the plant, Tianqi Lithium, have been increasingly at odds over the future of the plant, after the ASX-listed miner wrote down its value to zero.

Shares in IGO are trading down 6 per cent to $8.48 apiece at 11AM AWST.

Domestic proprietary stock traders are set to seek regulatory intervention to lobby the central bank to rework the margin funding rules for their trades as the existing proposal puts them at a disadvantage over global traders that are stepping on the gas in India, people familiar with the matter said.

The Commodity and Capital Market Participants Association of India (CPAI) is working with the Industry Standards Forum (ISF), a body comprising members of various industry associations, to create a separate framework that would distinguish between liquidity providers and speculators. That they believe would help them to convince the Reserve Bank of India (RBI) to permit lower margin for the bank guarantees and enable them to trade higher volumes.

The RBI has mandated that banks lending to capital market intermediaries (CMIs) extend guarantees for proprietary trading subject to the facility being fully secured. The proposal says that banks can extend guarantee only to the amount equal to the value of the collateral provided by the proprietary trading firm.

The ASEAN Future Forum 2026 opened in Hanoi on June 9, themed “Shaping Our Future Together.” Launched by Vietnam in 2023, the forum unites ASEAN leaders, businesses, and academics to address regional challenges including AI, energy security, and strategic autonomy, advancing ASEAN Community Vision 2045.

Key Points

• The ASEAN Future Forum (AFF) 2026 opened in Hanoi on June 9 under the theme “Shaping Our Future Together: Peace, Prosperity and People-Centered,” attended by Vietnam’s Prime Minister Le Minh Hung and leaders from Laos, Cambodia, Thailand, and Timor-Leste, along with the ASEAN Secretary-General.

• Launched by Vietnam at the 2023 ASEAN Summit, the AFF has grown into a key strategic dialogue platform, with ideas from previous editions reflected in official ASEAN Summit documents, reinforcing Vietnam’s proactive role in advancing regional cooperation.

• AFF 2026 features broader participation than previous editions, including political parties, local authorities, and business and academic communities, with discussions covering AI, energy security, conflict prevention, and implementation of the ASEAN Community Vision 2045.

The ASEAN Future Forum 2026: Launch and Leadership

The ASEAN Future Forum (AFF) 2026 officially opened in Hanoi on June 9, under the theme “Shaping Our Future Together: Peace, Prosperity and People-Centered.” The event was attended by senior regional leaders, including the Prime Ministers of Vietnam, Laos, Cambodia, Thailand, and Timor-Leste, alongside Vietnam’s Foreign Minister and the ASEAN Secretary-General. First introduced by Vietnam at the 43rd ASEAN Summit in 2023, the AFF was designed as a multi-stakeholder platform to complement existing ASEAN mechanisms and support long-term policy thinking for the ASEAN Community.

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Vietnam’s Vision: Dialogue, Inclusion, and Regional Resilience

In his opening remarks, Foreign Minister Le Hoai Trung emphasized Vietnam’s commitment to creating an open, forward-looking space for dialogue among ASEAN members and international partners. The forum brings together policymakers, academics, businesses, and citizens to contribute ideas toward a stronger, more resilient ASEAN. Previous editions in 2024 and 2025 generated innovative yet practical proposals, many of which have been reflected in official ASEAN Summit documents. Vietnam hopes the forum will strengthen diplomacy and mutual understanding amid growing geopolitical tensions and strategic competition across the region.

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AFF 2026: Expanding Scope and Shaping the Future Agenda

AFF 2026 features a broader and more inclusive format than previous editions, with discussions covering critical issues such as unity, strategic autonomy, conflict prevention, energy security, artificial intelligence, and financial technology. For the first time, the forum will host meetings involving political parties, local authorities, and business and academic representatives from across Southeast Asia. These expanded dialogues are expected to generate fresh perspectives and actionable solutions to support the ASEAN Community Vision 2045, helping the bloc adapt effectively to both emerging regional challenges and shifting global dynamics.

Source : ASEAN Future Forum 2026 opens in Hanoi

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