Sensex Hits 84K, Nifty Ends Above 25,600; Stock Market Rally Extends to 4th Day — What’s Fueling the Surge?

The Indian stock market continued its upward momentum for the fourth consecutive day on Friday, June 27, supported by positive global cues and strong performances across key sectors. Both benchmark indices, the Sensex and Nifty 50, ended the session with solid gains, wrapping up the week on a strong note.

This is the second week in a row that the stock market has gone up, with both indices rising over 2% during the week. The ongoing rally is being fueled by improving investor sentiment, easing global concerns, and falling crude oil prices, which have helped lift confidence across Dalal Street.

The Sensex went up by 303 points or 0.36% to close at 84,058.90, while the Nifty 50 rose by 89 points or 0.35% to finish at 25,637.80. The Nifty Bank index hit a record high, closing above the 57,400 mark for the first time ever. Around 40 of the Nifty 50 stocks ended the week in the green.

In just four trading sessions, the stock market rally has added Rs 12 lakh crore to investors' wealth. The total market value of companies listed on the BSE increased from Rs 448 lakh crore to Rs 460 lakh crore.

Why the Market Is Rising?

Experts say there are several key reasons for the strong stock market performance. Tensions in the Middle East eased after a ceasefire between Israel and Iran, which improved global confidence. Crude oil prices dropped significantly, helping countries like India that import a lot of oil. Foreign investors also returned to the Indian markets, adding to the positive momentum.

Additionally, major companies such as Reliance, ICICI Bank, and Bharti Airtel performed well, boosting market sentiment. Finally, positive signals from Wall Street and hopes for global interest rate cuts increased optimism among investors.

"Key catalysts like the ceasefire in the Middle East and optimism on easing trade tensions ahead of the deadline have cleared the clouds in the minds of investors. After consecutive days of selling, FIIs have turned net buyers in the domestic market, contributing to improved market stability in the near term.

Moreover, benign oil prices and a strengthening INR influenced investors to focus on domestic growth themes. Expectations of accelerating earnings, driven by resilient consumption and a relatively stable macroeconomic backdrop, are further reinforcing optimism," said Vinod Nair, head of research at Geojit Investments.

Top Gainers and Losers:

Jio Finance, Asain Paints, Apollo Hospitals, Indusind Bank, Ultra Cemet, Adani Entertainment and Powergrid were among the top Nifty gainers, rising over 2%. While Tata Consumer, Dr. Reddy, Wipro, SBI Life, and Axis Bank were some of the nifty losers of the day.

Oil and gas stocks led the market gains, helped by an 11% drop in global crude oil prices, with HPCL rising over 4.5%. Public sector banks also went up by nearly 1% after the Finance Minister encouraged them to increase lending.

Other sectors like pharma, capital goods, power, telecom, and healthcare also performed well. However, the real estate and IT sectors saw some profit booking. The Nifty Realty index fell by 1.55%, while the Nifty IT index slipped by 0.44%.

"After witnessing an excellent upside breakout on Thursday, Nifty continued to show follow-through upmove on Friday amidst range movement and closed the day higher by 88 points. After opening with a positive note, the market continued to move up gradually in early to mid-part of the session. The narrow range movement continued in the later part and Nifty closed at the highs," said added Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Stock Highlights:

• IndusInd Bank rose 3%, with reports of a new CEO search.
• Jio Financial Services gained 3.5% after SEBI approved its joint venture with BlackRock.
• Akzo Nobel jumped 7% on a deal with JSW Paints.
• Godfrey Phillips surged 5%, now up 79% in 2025.
• Dixon Technologies rose over 1% following a positive brokerage review.

Technical Outlook:

"The Nifty continued to move higher as investor confidence remained strong. With no major resistance seen before 25,750-25,800, the index may continue its upward trajectory. However, the rally might not be sharp, and it could take time to reach the 25,800 mark.

A buy-on-dips strategy appears more appropriate at current levels, following the sharp rise over the past few days. On the downside, support is placed at 25,500; a break below this level could lead to consolidation," said Rupak De, Senior Technical Analyst at LKP Securities.

"A long bull candle was formed on the daily chart which indicates uptrend continuation post decisive break out of the range movement. Nifty on the weekly chart formed a long bull candle after a range bound action of the last five weeks. This is positive indication and signals more upside for the near term.

The underlying trend of Nifty continues to be positive. The next upside to be watched around 25800-26000 levels by next week. Immediate support is placed at 25400," added Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Rupee VS Dollar:

The rupee closed 21 paise stronger against the US dollar at 85.49 on Friday. It had closed at 85.70 on Thursday.

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