Markets Pause for Muharram as Nifty Holds 24,056, RBI Proposes Term Money Market Expansion, and SEBI Clears Three IPOs

Indian financial markets paused on Friday, June 26, 2026, as domestic equity and currency exchanges closed in observance of the Muharram holiday. Trading activity will resume on Monday, June 29, 2026, with investors digesting a flurry of key regulatory updates from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Market participants are reflecting on the previous session's consolidation and preparing for a busy week of primary market listings.

📊 Markets Pause for Muharram: A Look Back at Nifty’s Consolidation at 24,056

The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) remained closed on Friday, June 26, 2026, in observance of Muharram, providing market participants a breather after a week of volatile trading. Banking operations were also suspended across multiple states, including Maharashtra, Karnataka, and West Bengal. In the previous trading session on Thursday, June 25, domestic equities managed to end marginally higher, with the Nifty 50 gaining 34.35 points, or 0.14%, to settle at 24,056.00, and the BSE Sensex rising 109.25 points, or 0.14%, to close at 77,100.47.

Institutional flows during the final active session of the week showcased strong domestic participation. Domestic Institutional Investors (DIIs) dominated the cash segment with a massive net purchase of ₹5,747.75 crore, easily offsetting early profit-booking pressures. Foreign Institutional Investors (FIIs) also turned net buyers, injecting a modest ₹383.76 crore. This combined institutional buying cushioned the market, which had seen its intraday gains trimmed by late-afternoon profit booking. Meanwhile, the Indian Rupee consolidated near ₹94.40 per USD, supported by a decline in Brent crude oil prices below the $76 per barrel mark.

🏛️ RBI Proposes Expanded Term Money Market Access to Boost Liquidity

In a significant regulatory development late Thursday, the Reserve Bank of India (RBI) released draft directions aimed at widening participation in the domestic term money market. The proposed rules seek to allow a broader range of financial entities, including Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and All India Financial Institutions (AIFIs), to act as both borrowers and lenders in the term money market. Non-NBFC corporate entities will also be permitted to participate, though exclusively as lenders. Smaller "base-layer" NBFCs, however, will be excluded from this participation to mitigate systemic risks.

To manage exposure and leverage, the RBI has proposed prudential limits for these new participants. Borrowing in the term money market for eligible NBFCs and HFCs will be capped at 200% of their Net Owned Funds (NOF) as of the end of the previous financial year. Meanwhile, standalone primary dealers (PDs) will see enhanced borrowing flexibility, allowing them to borrow up to 400% of their NOF. Additionally, all new participants must secure membership on the Negotiated Dealing System-Call (NDS-CALL) electronic trading platform within six months of the rules taking effect, with comments from market stakeholders invited until July 17, 2026.

💼 SEBI Clears Three IPOs and Corporate Disclosures Point to Strong Primary Pipeline

Primary markets in India continue to showcase robust momentum, with the Securities and Exchange Board of India (SEBI) granting regulatory approvals (issuing 'observations') for initial public offerings (IPOs) of three distinct firms: Sathya Agencies, Kanohar Electricals, and Torrent Gas. The clearances indicate a busy quarter ahead for investment banks and retail investors alike, as companies seek to tap into deep domestic liquidity. Torrent Gas, in particular, is expected to draw significant interest given the growing emphasis on city gas distribution infrastructure across the country.

Alongside primary market clearances, listed corporates provided key regulatory disclosures on Thursday. Tata Motors addressed market speculations by clarifying its ongoing discussions regarding strategic partnerships, while engineering major RITES Limited disclosed the formal creation of a joint venture in the United Arab Emirates (UAE) to expand its global infrastructure consultancy footprint. These corporate updates, coupled with positive net institutional inflows, highlight the underlying strength of India's corporate sector amidst global macroeconomic adjustments.

📌 The Bottom Line

• markets-pause-muharram: Indian stock exchanges were closed on June 26 for Muharram following a session where the Nifty 50 consolidated at 24,056, supported by DII net purchases of ₹5,747.75 crore.
• rbi-term-money-expansion: The RBI proposed allowing NBFCs and HFCs to borrow up to 200% of Net Owned Funds in the term money market, while primary dealers' borrowing limits were raised to 400%.
• sebi-ipo-clearances: SEBI cleared IPO proposals for Sathya Agencies, Kanohar Electricals, and Torrent Gas, pointing to a strong primary market pipeline and active capital raise plans.