Sensex Surges 1,000 Points, Nifty Tops 25,500 on Global Cues & Banking Rally

Indian benchmark indices posted their most significant single-day gains in weeks on Thursday, June 26, 2025, as a wave of bullish sentiment swept through Dalal Street, driven by renewed global optimism and a stellar performance in the banking sector.

The Indian stock market opened strong and extended its gains throughout the session, marking a third consecutive day of advances. The 30-share BSE Sensex closed the day with a substantial gain of 1,000.36 points, or 1.21%, to settle at a new high of 83,755.87. During the day’s trading, it hit an intraday peak of 83,812.09.

Similarly, the 50-share NSE Nifty 50 index surged by 304.25 points, also a 1.21% gain, to close at 25,549.00. The index decisively breached the psychologically important 25,500 level, touching an intraday high of 25,565.30.

What Fueled the Rally?

The market’s strong performance was not based on a single catalyst but a combination of positive domestic and international factors.

1. Easing Geopolitical Tensions: The primary driver for the global risk-on sentiment was the fragile but holding ceasefire between Israel and Iran. The de-escalation of conflict in the Middle East has calmed investor nerves worldwide, leading to a surge in equity markets. This has also led to a moderation in crude oil prices, a significant positive for an oil-importing nation like India.

2. Banking Sector Hits a Record High: The star of the session was the banking sector. The Nifty Bank index was a clear outperformer, touching a record high of 57,076.95 during the day. The rally was led by heavyweight private sector banks like HDFC Bank, ICICI Bank, and Axis Bank. This surge is attributed to expectations of a revival in credit growth, supported by the Reserve Bank of India’s recent liquidity measures.

3. Broad-Based Buying: While the banking sector led the charge, the rally was broad-based, indicating strong investor confidence across the board. Sectoral indices like Nifty Auto, FMCG, Metal, and Oil & Gas all ended the day in the green. The advance-decline ratio was firmly in favour of advancers, with the Nifty Midcap 100 and Nifty Smallcap 100 indices also extending their upward journey.

Market Movers and Shakers

Several blue-chip stocks contributed to the headline indices’ gains. Top gainers on the Nifty 50 included Bajaj Finance, Jio Financial Services, Shriram Finance, and Bharti Airtel.

However, despite the overwhelmingly positive market, some stocks like Dr. Reddy’s Laboratories and Tech Mahindra witnessed profit booking and ended among the top losers.

The market’s momentum was strong enough to absorb continued selling by Foreign Institutional Investors (FIIs). Provisional data showed that on Wednesday, FIIs offloaded equities worth ₹2,427.74 crore. This outflow was more than compensated for by Domestic Institutional Investors (DIIs), who purchased shares worth ₹2,372.96 crore, showcasing the underlying strength of domestic capital.

What to Watch Next

While the mood on Dalal Street is celebratory, investors should monitor key developments that could influence the market’s trajectory.

• Global Cues: The durability of the Middle East ceasefire remains a key factor. Any renewed flare-up could reverse the positive sentiment. Developments on the US-China trade front will also be closely watched.
• FII Activity: While DIIs have provided a strong counterbalance, a sustained increase in FII selling could exert pressure on the market, especially at current valuations.
• Upcoming Earnings Season: As the first quarter of the financial year concludes, market focus will shift to corporate earnings. Company results and management commentary will be critical in justifying current market valuations.
• Technical Levels: For the Nifty 50, the immediate support level has now moved higher to the 25,200 zone. A decisive hold above 25,500 could open up targets toward 25,700 and beyond. For the Bank Nifty, having crossed the 57,000 mark, the next psychological levels to watch are 58,500 and 60,000.

In summary, today’s session was a clear victory for the bulls, driven by a potent mix of global calm and domestic financial strength. Whether this momentum can be sustained will depend on how global risks evolve and if corporate earnings can keep pace with the market’s high expectations.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.