Positive global cues and easing geopolitical tensions helped Indian markets extend their winning streak for the third straight session. On June 27, the Sensex surged over 600 points, while the Nifty comfortably crossed the 25,400 mark, reflecting a broad-based rally.
Key Factors Behind the Market Rally
1. US-Iran Talks Bring Relief to Global Markets
Investor confidence rose after US President Donald Trump hinted at a possible new agreement with Iran to halt its nuclear ambitions. His comments during the NATO summit in The Hague suggested a diplomatic de-escalation in the Iran-Israel tensions, which had previously spooked global markets.
“With the ceasefire between Israel and Iran, global markets are in risk-on mode,” said V K Vijayakumar of Geojit Financial Services.
2. Firm Global Market Cues
Asian indices such as Japan’s Nikkei 225 and China’s Shanghai Composite traded higher, supporting bullish sentiment. While US markets ended mixed, futures signaled a strong opening, providing a positive backdrop for Indian equities.
3. Strengthening Rupee Supports Sentiment
The rupee appreciated by 21 paise, hitting 85.87 against the US dollar in early trade. A stronger rupee generally favors equities by reducing import costs and improving foreign investor sentiment. However, gains were tempered by rising crude oil prices and continued FII outflows, traders noted.
Domestic Strength Reinforces Confidence
The RBI’s June bulletin painted an encouraging picture of the economy.
“India’s macro fundamentals continue to show strength despite global volatility,” the report stated, highlighting resilience across industrial and services sectors.
Heavyweight Buying Lifts Indices
Large-cap stocks like Bharti Airtel and Reliance Industries gained nearly 2%, contributing significantly to market strength. The buying of blue-chip stocks provided strong support to benchmark indices.
Caution Advised Despite Optimism
Anand James of Geojit Financial Services advised investors to remain cautious.
“While the outlook remains bullish, the lack of strong momentum calls for a watchful approach,” he said.
According to James, Nifty may find support around 25,173–25,127, and further around 24,940 if selling pressure increases. On the upside, the index could face resistance near 25,460–25,550.
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