Sensex Jumps 700 Points, Nifty Ends at 25,245; Key Reasons Behind Indian Stock Market Rally

The Indian stock market closed much higher on Wednesday, reaching their highest closing levels of 2025 so far. This strong rally was driven by easing tensions in the Middle East, as news of a ceasefire between Israel and Iran boosted global investor confidence.

BSE Sensex closed at 82,755.51, rising 700.40 points or 0.85%, while the Nifty50 index ended at 25,244.75, up 200.40 points or 0.80% crossing the 25,200 mark for the first time this year. This marks the second day of gains for both indices.

The total market value of BSE-listed companies rose by Rs 4 lakh crore, reaching around Rs 454 lakh crore.

Buying in heavyweight stocks like Reliance, Infosys, HDFC Bank, and Bharti Airtel also supported the gains. Positive global cues and strong performance in sectors like IT, Media, and Smallcaps added to the market momentum.

Key Reasons Behind The Rally:

Global investor sentiment improved as tensions between Israel and Iran eased after news of a ceasefire, leading to a more positive outlook. This, along with a rally in global stock markets and a weaker US dollar, added to the overall upbeat momentum in the markets.

"Indian equity markets have staged a recovery, supported by easing geopolitical tensions in the Middle East and a moderation in crude oil prices. While FIIs continue to withdraw capital, positive global cues are helping sustain domestic market momentum.

Domestically, a favourable monsoon forecast, and moderating inflation are further underpinning the optimism. Although the prospect of new US tariffs presents a potential headwind, near-term market sentiment remains broadly positive," Vinod Nair, head of research at Geojit Investments.

Top Gainers And Losers:

Titan, M&M, Grasim, Infosys, JSW Steel, and Power Grid were among the top Nifty gainers, closing nearly 2% higher. On the flip side, Bharat Electronics, Kotak Mahindra Bank, Eicher Motors, Axis Bank and ONGC ended in the red.

Most sectoral indices ended higher, with auto, consumer durables, IT, telecom, healthcare, and media stocks gaining between 1% and 2%.

Nifty IT and Nifty Media gained over 1.5%, while Nifty PSU Bank rose 1.5% and Nifty Metal added 1%. Other sectors like Auto, FMCG, Realty, and Financial Services also ended with gains.

The BSE Smallcap index rose 1.59%, and the Midcap index gained 0.63%. Nifty Smallcap 250 and Midcap 150 extended their winning streak for the 4th day in a row.

"The index remained mostly positive after a strong start. Sentiment continues to improve as buying interest in stocks rises. The ceasefire following the conflict between Israel and Iran has boosted confidence among bullish traders, who are now aiming to take the Nifty towards 25,750," said Rupak De, senior technical analyst atLKP Securities.

Technical Market Outlook:

"The Nifty is on the way towards the decisive upside breakout of the broader high low range of 25200-24500 levels. Further sustainable upside from here could pull Nifty towards the next upside target of 25600-25700 levels in the near term. Immediate support is placed at 25000 levels," Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

"Immediate resistance is placed at 25,350; a breakout above this level could extend the rally towards 25,750. On the downside, the 24,820-25,000 zone is likely to continue acting as a crucial support. Unparallelled Put writing, in contrast to Call OI unwinding, reflects the bullish aggression of traders, noted Rupak De, senior technical analyst at LKP Securities.

Rupee VS Dollar:

Indian rupee closed 0.21% higher against US dollar at 86.09 per dollar today, June 25 as compared to Tuesday's close of 85.93.

"The Indian Rupee has stabilised subsequent to two days of heightened volatility, a period influenced by prevailing geopolitical uncertainties. The rupee's performed moderately among the Asian currencies; a development likely attributable to the Reserve Bank of India's recent implementation of measures designed to manage short-term liquidity within the market.

Concurrently, the broad-based appreciation of the US Dollar and recovery in crude oil prices have collectively exerted downward pressure on the rupee. In the near term, the spot USDINR is expected to encounter support at the 85.45 level, while resistance is anticipated at 86.60," said Dilip Parmar, Research Analyst, HDFC Securities.

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