Bull Run On D-Street! Sensex Rallies Over 1000 Points, Nifty Ends Above 25,100

Indian stock markets made a strong comeback on Friday, June 20, after a 3-day losing streak. The Sensex and Nifty 50 bounced back to close over 1%, despite ongoing geopolitical tensions due to Israel and Iran conflict.

After a flat start, the Sensex jumped 1046.30 points or 1.29% to close at 82,408.17, while the Nifty 50 gained 319.15 points or 1.29% to end at 25.112.40. All sectoral indices ended the day in green, with realty, banking, financial, and metal emerging as the top gainers.

Broader markets also performed well, with the Nifty Midcap 100 and Nifty Smallcap 100 rising over 1% each. The sharp rebound led to a massive increase in investor wealth.

The total market value of all companies on the BSE grew from Rs 443 lakh crore to nearly Rs 448 lakh crore in a day, adding around Rs 5 lakh crore to investors' wealth.

Top Gainers & Losers:

Trent and Jio Finance were among the day's top nifty performers, rising over 3% each, followed by Mahindra & Mahindra, Bharti Airtel, Nestle India & HDFC life raisng the bar.

While, Hero Moto corp, Dr. Reddy, Maruti, ONGC and Axis Bank were top nifty losers on June 20.

Nifty Reality was the top sectoral gainer of Nifty50, rising around 2% with Lodha (Macrotech Developers), Phoenix Ltd, Godrej Properties and Oberoi realty being the front runners.

The Nifty Midcap 100 Index rose by 1.46%, while the Nifty Smallcap 100 Index gained 1.01%. BSE Midcap and Smallcap closed higher by 1.2% and 0.55% as well.

Overall, market sentiment was positive - out of 3,939 stocks traded on the BSE, 2,357 went up while 1,413 went down.

"Nifty on the weekly chart formed a long bull candle after a sharp weakness of last week and is placed at the upper end of broader high low range. This is positive indication.The underlying trend of Nifty is positive.The next upside levels to be watched around 25250.

A decisive breakout of the range could pull Nifty towards the next upside target of 25650 in the near term. Any consolidation or minor dips down to the immediate supports of 24900 could be a buy-on-dips opportunity," Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities noted following today's jump.

What Fuelled the Market Rally?

"Friday's session saw a broad-based rebound, as easing crude prices, continued FII inflows, and a softening dollar index gave bulls the upper hand. All sectoral indices closed in the green, with strong moves in telecom, capital goods, and PSU banks," said Vikram Kasat, Head of Advisory at PL Capital.

"The national equity indices surged as Middle East tension moderated with risk of immediate military actions reduced as US dialogue with Iran is expected to take place. The development led the crude price to correct, favouring domestic markets and boosting foreign investors' sentiments.

In the broader market, rapid fall in VIX index and buying was witnessed in rate sensitives and consumer oriented sectors like Finance, Auto and Reality and in anticipation of better Q1FY26 results led by rate cuts benefits, drop in inflationary pressure and rebound in consumer spending," said Vinod Nair, head of research, Geojit Investments.

"Markets are finding their feet after a jittery spell, but sentiment remains headline-driven. While the rally is encouraging, traders may stay selective as global cues, oil trends, and macro signals take centre stage next week," added Vikram Kasat of PL Capital.

Impact on Rupee VS Dollar:

The rupee closed the day stronger at 86.5850 against the US dollar, up 0.15 from 86.7225 in the previous session. Throughout the day's trading, the Rupee largely stabilised within a confined band.

"The Indian Rupee snapped its three-day slide, appreciating against the US Dollar. This resurgence was propelled by a revitalisation in the domestic stock markets and a subdued Greenback, which receded following reports of President Donald Trump postponing a decision regarding an Iran strike. Additionally, lower imported commodity prices lent additional buoyancy to the local rupee," said Mr. Dilip Parmar, Research Analyst, HDFC Securities.

"In the near-term, the spot USD/INR pair faces resistance at 87.10 and finds support at 86.45. The overall bias for the USD/INR pair remains favourable," added Dilip Parmar of HDFC Securities.

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