Domestic markets are likely to sustain their gains amid positive global cues. Markets are likely to breach their previous peaks in this sustained rally, said analysts. Nifty had touched its all-time high of 26,277.35 in September 2024. Gift Nifty at 25,770 signals that the market may open positively and is likely to end June on a strong note. Nifty may see a flat opening. Puneet Singhania, Director at Master Trust Group said, positive global cues, easing geopolitical tensions, and a dovish US Fed outlook support sentiment. Domestically, the RBI’s recent rate cut and robust institutional inflows have added momentum and provided additional support. Additionally, a healthy pipeline of IPOs, including several big names, are likely to keep the market activity vibrant, he said, adding: “Overall, Indian markets are expected to remain resilient with a stock-specific approach driving near-term direction.”

Dr. V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said: Ample liquidity and investor optimism have the potential to sustain the rally. However, high valuations are a limiting factor. High valuations can attract profit-booking.

“The ceasefire between Israel and Iran and the sharp decline in crude triggered a risk-on in global equity markets. Along with this favourable investment scenario, dollar continued to decline and the dollar index dipped to a sub-97 level. Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India. The FII buy figure for June, including buying through the exchange and primary market and others category through 27th stood at ₹8,915 crore,” he further said. 

According to him, FIIs were buyers in financials, capital goods and realty stocks and were sellers in FMCG, consumer durables and IT.  

Trading in the derivatives segment also presents a bullish outlook, said analysts. Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, said, from a derivatives standpoint, sentiment remains firmly tilted in favour of the bulls. Put writers have aggressively built positions at key support levels, reflecting confidence in downside protection. “The Put-Call Ratio (PCR) stands at 1.18, highlighting enhanced put writing activity and confirming a bullish undertone in the market. Additionally, the Max Pain point now resides at 25,500, suggesting this level may act as a magnet for approaching weekly expiry,” he further said.

Meanwhile, India VIX continued its downward drift, sliding another 1.61% to close at 12.38. “Its sustained positioning below the 15-mark underscores a tranquil market environment, with low implied volatility indicating subdued fear and rising investor confidence — both of which support a stable, upward-trending market,” added Dhameja.

Global cues will continue to anchor market movements, said analysts. 

Ajit Mishra – SVP, Research, Religare Broking Ltd, said: Looking ahead, global cues will continue to drive the market direction. Despite improved sentiment, caution persists regarding potential tariff escalations, with US tariffs scheduled to resume from July 9 and updates on trade agreements will remain in focus. The US President recently announced on a social media platform the signing of a deal with China and indicated a potential deal with India, although details remain scant. Further clarity on these developments will be closely monitored by the market. 

“Domestically, high-frequency data such as IIP and PMI figures will be in focus, along with the monsoon’s progress and FII activity, to gauge short-term market trends,” he added.

Meanwhile, most equities across the Asia-Pacific region are up in early deals on Monday.

Published on June 30, 2025