Mumbai, Jun 9 (PTI) Benchmark indices Sensex and Nifty found firmer ground on Tuesday after sliding for the past two sessions, propelled by intense buying in banking and financial stocks amid a recovery in global markets and easing crude prices.

Signs of easing tensions in West Asia added to markets' optimism, but unrelenting foreign fund outflows capped the gains, traders said.

In a volatile trade, the 30-share BSE Sensex climbed 394.50 points, or 0.54 per cent, to settle at 73,918.76. During the day, it jumped 511.15 points, or 0.69 per cent, to 74,035.41.

A total of 2,782 stocks advanced, while 1,423 declined and 193 remained unchanged on the BSE.

The 50-share NSE Nifty ended 119.10 points, or 0.52 per cent, higher at 23,242.10. Intra-day, the benchmark index climbed 156.4 points, or 0.67 per cent, to 23,279.40.

"Indian equity markets ended higher as easing tensions between Israel and Iran helped improve investor sentiment and drive a recovery in risk assets.

"Global markets also traded firmly in positive territory, supported by a combination of easing geopolitical risks, softer oil prices and renewed optimism surrounding the technology and AI sectors," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Among the Sensex firms, InterGlobe Aviation, State Bank of India, ICICI Bank, Axis Bank, Bajaj Finance and Asian Paints were the major winners.

On the other hand, Titan, NTPC, Power Grid and Tech Mahindra were among the laggards.

The BSE MidCap Select index jumped 1.50 per cent, and the SmallCap Select index went up by 1.33 per cent.

"The standout performer was the PSU banking space, which significantly outperformed the broader market. A major catalyst came from the RBI's recent initiatives aimed at improving banking system liquidity and reducing funding costs.

"These measures are expected to benefit large public sector lenders, leading to renewed buying interest across names such as Bank of Baroda, Canara Bank and Bank of India," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

Sectorally, PSU Bank surged 3.83 per cent, MidSmall Private Banks Quality Tilt jumped 3.06 per cent, Bankex (2.18 per cent), Services (2 per cent), Realty (1.76 per cent), Financial Services (1.60 per cent) and Top 10 Banks (1.59 per cent).

In contrast, IT, Utilities and Focused IT were the laggards.

Brent crude, the global oil benchmark, declined 1.66 per cent to USD 92.69 per barrel.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 and Shanghai's SSE Composite index ended higher, marking a rebound from the sharp losses in the previous trade, while Hong Kong's Hang Seng index settled lower.

The Kospi surged 8.18 per cent, the Nikkei 225 index climbed 2.17 per cent, and the SSE Composite index went up by 1.28 per cent.

Markets in Europe were trading in the positive territory.

US markets ended mostly higher on Monday.

"Domestic markets are witnessing a mild recovery after the recent sharp decline, supported by a pause in Iran-Israel tensions and softer crude prices. However, sentiment remains fragile, with continued FII outflows and higher bond yields highlighting persistent concerns around evolving global macro dynamics," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,555.67 crore on Monday, according to exchange data.

On Monday, the Sensex tumbled 719.08 points, or 0.97 per cent, to close at 73,524.26. The Nifty settled 243.70 points, or 1.04 per cent, lower at 23,123. PTI SUM SUM BAL BAL

Banking stocks drive market recovery as global cues improve and RBI liquidity measures lift sentiment. Indian equity markets recovered after two sessions of losses, led by strong buying in banking and financial stocks. The advance was supported by firmer global markets, easing geopolitical tensions, softer crude prices, and improved risk appetite, while foreign fund outflows limited gains. PSU banks and related financial stocks outperformed on expectations that recent RBI liquidity initiatives would improve banking system liquidity and reduce funding costs.