The frontline indices of the Indian stock market—the Sensex and the Nifty 50—clocked solid gains on Wednesday, June 25, amid positive global cues.
The Sensex opened at 82,448.80 against its previous close of 82,055.11 and jumped over 750 points, or nearly 1 per cent, to an intraday high of 82,815.91. The Nifty 50 started the day at 25,150.35 against the previous close of 25,044.35 and rose nearly a per cent to an intraday high of 25,266.80.
Eventually, the Sensex ended at 82,755.51, up 700 points, or 0.85 per cent, while the Nifty 50 settled at 25,244.75, up 200 points, or 0.80 per cent.
The BSE Smallcap index outperformed, rising by 1.59 per cent, while the Midcap index rose by 0.63 per cent.
The overall market capitalisation of BSE-listed firms rose to nearly ₹454 lakh crore from ₹450 lakh crore in the previous session, making investors richer by about ₹4 lakh crore in a day.
What drove the Indian stock market higher today?
According to experts, these five factors could be behind the market rally:
1. Israel-Iran: No news is good news
A ceasefire between Israel and Iran soothed market concerns globally. Amid no news of any violations after US President Donald Trump’s appeal to both countries, the truce seems to be holding.
According to Reuters, “Trump’s Middle East envoy, Steve Witkoff, said late on Tuesday that talks between the United States and Iran were promising and that Washington was hopeful for a long-term peace deal.”
2. Focus shifts to domestic fundamentals
With geopolitical tensions easing, investors’ focus has shifted to domestic fundamentals, which remain strong.
The Indian economy is likely to grow at a pace of more than 6 per cent in FY26, keeping it among the fastest-growing major economies in the world.
Amid the prospects of an above-normal monsoon, India’s growth-inflation dynamics remain strong.
The monsoon is likely to cover the entire country two weeks in advance. Experts, quoting reports, pointed out that India’s cumulative monsoon rainfall stood at 4 per cent above the long-period average (LPA) as of June 24.
India retained the top position in Mint’s Emerging Markets Tracker for the second consecutive month in May, thanks to its fastest GDP growth and strongest manufacturing activity among emerging markets, and continued gains in the stock market.
Track Israel-Iran ceasefire LIVE updates here
3. Domestic investors lending support
Domestic institutional investors (DIIs) have been absorbing the selloff by foreign institutional investors, underpinning the market.
In the previous session, FPIs sold Indian equities worth ₹5,266 crore in the cash segment. On the other hand, DIIs bought Indian equities worth ₹5,209.60 crore.
In June (till 24th), FPIs sold off Indian equities worth ₹3,243.18 crore in the cash segment, while DIIs bought Indian stocks for ₹67,587.67 crore.
“FIIs have been selling. On the other hand, DIIs have been sustained buyers in the market, thanks to the continuing inflows into mutual funds. This will impart resilience to the market even when FIIs sell on valuation concerns,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, pointed out.
4. Stable crude oil prices, dollar index
Stable crude oil prices and the dollar index have also influenced domestic market sentiment.
Despite tensions in the Middle East, crude oil prices trade below $80 per barrel, which is a huge relief for the Indian economy, which is one of the largest importers of crude oil.
A hike in crude oil prices not only distorts India’s fiscal math but also raises inflationary risks, weakens the rupee, and hits corporate profitability.
On the other hand, the dollar index continues trading below the 100 mark, boosting the prospects of increased foreign capital inflow in emerging markets like India.
5. Technical factor: Nifty ends near 25,250
The Nifty 50 settled near the psychologically important level of 25,250, and experts expect the index to head towards 25,800.
Rohit Srivastava, the founder and market strategist at Indiacharts.com, pointed out that the Nifty is exhibiting a classic uptrend pattern, marked by higher highs and higher lows, confirming the strength of the trend in line with Dow Theory.
Srivastava added that a decisive close above the midpoint of the rising channel, which lies around 25,200, could trigger a potential move toward the top of the channel at 25,800.
According to Aditya Gaggar, the director of Progressive Shares, 25,100 is now expected to act as immediate support.
“With the current momentum, the Index appears to move towards the 25,350–25,450 zone in the near term,” said Gaggar.
Read all market-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.