Dalal Street Roars: Sensex & Nifty Surge on Global Relief and Oil Price Plunge

A wave of optimism swept through Indian markets for the second consecutive day on Wednesday, as benchmark indices posted significant gains, driven by a powerful combination of positive global and domestic cues.

The S&P BSE Sensex and the NSE Nifty 50 both surged by nearly 1% on June 25, 2025. The rally was ignited by easing geopolitical tensions in the Middle East, a sharp decline in crude oil prices to a five-month low, and strong cues from rallying US markets. This broad-based buying underscored a renewed sense of confidence on Dalal Street, despite continued net selling by foreign institutional investors (FIIs).

Rally Gains Momentum Across the Board

The trading session began on a strong footing, with the Sensex opening over 400 points higher and the Nifty comfortably above the 25,100 mark. This upward momentum was sustained throughout the day.

By the closing bell, the BSE Sensex had jumped 700.40 points (0.85%) to settle at 82,755.51. Similarly, the NSE Nifty 50 climbed 200.40 points (0.80%) to close at 25,244.75. During the session, the Nifty touched an intraday high of 25,317.70, signaling strong bullish sentiment.

The market’s underlying strength was evident in its breadth. On the NSE, nearly 2,000 stocks advanced while only around 600 declined. The rally’s depth was further highlighted by strong performance in broader markets, with the Nifty MidCap 100 rising 0.38% and the Nifty SmallCap 100 surging an impressive 1.56%.

Key Catalysts Fueling the Surge

Several factors converged to create a bullish environment for Indian equities:

1. Geopolitical De-escalation: The most significant trigger was the announcement of a ceasefire between Iran and Israel. This news eased fears of a wider conflict in the Middle East, a concern that had kept markets on edge, and immediately boosted global investor sentiment.

2. Crude Oil Cools Off: Directly linked to the ceasefire, global crude oil prices tumbled. Brent crude fell below $68 a barrel, a five-month low. For a major energy importer like India, lower oil prices are a significant positive, helping to reduce the import bill, ease inflationary pressures, and lower input costs for many industries.

3. Supportive Global Markets: Indian markets took positive cues from a strong rally in US equities, which had closed at a four-month high. Key Asian markets, including those in South Korea and Hong Kong, also traded higher, providing a favorable backdrop.

4. Resilient Domestic Buying: While FIIs were net sellers on the previous day (selling equities worth ₹5,266 crore), domestic institutional investors (DIIs) have been consistent buyers, absorbing the outflow. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has noted that the steady flow of funds into mutual funds is a key reason for the market’s resilience.

Sector Spotlight: IT Shines, Defence Dims

The rally was broad-based, with IT, FMCG, and Auto stocks leading the charge. The Nifty IT index jumped 1.22%, while the Nifty FMCG index gained 0.8%.

Among the top gainers in the Nifty 50 pack were Titan Company, Infosys, Tech Mahindra, and JSW Steel. Bharti Airtel was another standout performer, hitting a new 52-week high during the session.

In a stark contrast, defence sector stocks faced selling pressure. The Nifty India Defence Index fell for a second day as the ceasefire news prompted profit-booking after a sharp rally in recent weeks. Some private banking stocks, including Kotak Mahindra Bank and Axis Bank, also ended in the red.

Market Outlook: Key Levels and Headwinds

While the mood has turned decidedly positive, investors will be watching key levels and developments closely.

• Nifty’s Technical Levels: According to technical analysts, the Nifty 50 needs to decisively breach the 25,250-25,300 resistance zone to sustain its upward momentum. On the downside, the 24,500 level is seen as a crucial support zone.
• Institutional Flows: The dynamic of FII selling versus DII buying remains a key factor. A reversal in FII flows could provide further impetus to the market.
• Global Cues: While the immediate geopolitical threat has eased, markets will remain sensitive to any new developments. Future commentary from the US Federal Reserve on interest rates will also continue to be a major influence.

For now, the bulls are firmly in control of Dalal Street. The market has shown remarkable resilience, and the combination of global calm and favorable domestic factors suggests the path of least resistance may be upwards.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.