Synopsis : Indian markets surged on Friday with Sensex rising over 760 points and Nifty crossing 25,000, driven by easing geopolitical concerns and cooling oil prices. Broader market indices also posted strong gains with PSU Banks and Realty stocks leading the charge.
Markets Bounce Back as Oil Cools, Diplomacy Returns
Mumbai, June 20 – Indian stock markets saw a sharp rebound on Friday after investor sentiment improved following diplomatic overtures by the U.S. toward Iran, signalling a preference for negotiations over immediate conflict escalation. The Sensex jumped 801 points to trade at 82,064, while the Nifty 50 surged 240 points to cross the 25,000 mark for the first time in the week.
Adding to the positive momentum, Brent crude prices dropped over 2%, falling to $76.9 per barrel, offering relief for oil-importing nations like India. Precious metals also cooled off, with gold and silver prices trading lower, reflecting reduced demand for safe-haven assets.
Sectoral Highlights and Top Movers
The rally was broad-based with Nifty PSU Bank and Realty indices gaining over 1% each. Financial Services and Metals also saw strong buying interest. Meanwhile, India VIX, the volatility index, declined nearly 4%, reflecting reduced investor fear.
Gainers:
M&M, Nestle India, Bajaj Finserv, SBI, Ultratech Cement, Maruti Suzuki, Bharti Airtel, PFC, and REC
Notably, Nestle India rose 2%, and PFC and REC gained over 4%
Losers:
IndusInd Bank, Bajaj Finance, Tech Mahindra, Kotak Mahindra Bank, and Power Grid
Global Context Matters
The geopolitical situation in West Asia appears to be stabilizing, at least temporarily. The United States signaled that it would decide in two weeks whether to support Israel's military response or push for a diplomatic resolution with Iran. This stance significantly cooled investor nerves, contributing to the strong gains in equities and a drop in crude oil.
Broader Markets Strengthen
The Nifty MidCap index rose 0.84%, and the Nifty SmallCap index added 0.74%, showing that the positive sentiment extended beyond large-cap stocks. This renewed interest in SMIDs (Small and Midcaps) hints at a more sustainable rally.
Disclaimer : This article is for informational purposes only and should not be construed as investment advice. Stock markets are subject to risks. Please consult your financial advisor before making any investment decisions.
