Markets extended their strong run on Friday, with both benchmark indices posting solid gains to reach nine-month highs as investors cheered easing geopolitical tensions and a sharp decline in crude oil prices. The BSE Sensex closed 303.03 points or 0.36 per cent higher at 84,058.90, while the NSE Nifty 50 advanced 88.80 points or 0.35 per cent to settle at 25,637.80.

The rally built on Thursday’s gains when markets had closed at their highest levels in nine months, with the Nifty at 25,549 and Sensex at 83,755.87. The momentum continued into Friday, driven by banking sector strength, geopolitical cooling following the Israel-Iran ceasefire after 12 days of tensions, and June expiry positioning with short-covering in the F&O segment.

“Key catalysts like the ceasefire in the West Asia and optimism on easing trade tensions ahead of the deadline have cleared the clouds in the minds of investors,” said Vinod Nair, Head of Research at Geojit Investments Limited. “After consecutive days of selling, FIIs have turned net buyers in the domestic market, contributing to improved market stability in the near term.”

The market breadth remained positive with 2,251 stocks advancing against 1,760 declining on the BSE. Energy and pharma sectors emerged as the top gainers, with Nifty Oil & Gas outperforming peers with a 1.19 per cent uptick, followed by Nifty Infrastructure at 1.07 per cent and Nifty Energy at 1 per cent. Bank Nifty continued its record-breaking run, gaining 0.41 per cent to hit a fresh all-time high of 57,443.90.

Jio Financial Services led the Nifty 50 gainers with a surge of 3.87 per cent to ₹324.60, followed by Asian Paints which climbed 3.15 per cent to ₹2,362.00. Apollo Hospitals gained 2.94 per cent to ₹7,310.00, while IndusInd Bank advanced 2.89 per cent to ₹860.30 and UltraTech Cement rose 2.42 per cent to ₹12,240.00.

On the downside, Tata Consumer Products was the biggest loser, falling 2.13 per cent to ₹1,121.00. Dr. Reddy’s Laboratories declined 1.44 per cent to ₹1,302.50, while Wipro dropped 1.16 per cent to ₹265.40. SBI Life Insurance and Axis Bank also declined 0.96 per cent and 0.85 per cent respectively.

The Indian rupee strengthened significantly against the dollar, gaining 25 paise to close at 85.49. “Rupee traded strong with gains of 25 paise at 85.49 as the dollar index continued its weak trend below the 97 mark,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The rupee has strengthened over the last few sessions, supported by easing tensions in the West Asia and a sharp 12–14 per cent drop in crude prices.”

Gold prices faced selling pressure amid improving risk sentiment globally. “Gold prices fell sharply below ₹96,000, down by ₹1,300, as Comex gold breached the $3,300 support level, triggering fresh selling pressure,” Trivedi noted. Rahul Kalantri from Mehta Equities added that “Gold and silver prices continued with their downward spiral post the ceasefire between Israel and Iran and risk on sentiment across global equity markets.”

The broader markets significantly outperformed the benchmarks, with the Nifty Midcap 100 gaining 0.27 per cent to 59,385.15. Market data showed 164 stocks hit 52-week highs compared to just 52 touching 52-week lows, while eight stocks were locked in upper circuit and nine hit lower circuit limits. Market volatility cooled further, with India VIX declining 1.9 per cent to 12.36, building on Thursday’s 2.9 per cent fall.

“The recent geopolitical stability has improved risk sentiment, as seen in the broad-based market participation,” said Ajit Mishra, SVP Research at Religare Broking. “Moreover, positive developments around potential trade agreements could further strengthen the bullish bias.”

From a technical perspective, analysts remained optimistic about the market’s trajectory. “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,” said Rupak De, Senior Technical Analyst at LKP Securities.

Vikram Kasat, Head - Advisory at PL Capital, noted that “Markets appear upbeat, backed by falling crude, a strong rupee, and stable global sentiment.” The weekly performance was particularly impressive, with both indices logging gains of over 2 per cent and the rupee posting its best weekly gain since January 2023.

Looking ahead, market participants will focus on the upcoming first-quarter earnings season and key economic indicators. “As the first-quarter earnings season draws near, investors are turning their focus to corporate results for early indications of growth trends,” Nair from Geojit explained. “There is also heightened anticipation around trade agreements that the United States is expected to finalize with major global partners in the coming week.”

Published on June 27, 2025