Indian benchmark indices made it three in a row on Thursday, with a largely cautious tone, as investors navigated a slew of mixed global cues and the de-escalation of Middle East-related tensions remained the primary focus of investor assessment. In this context, both the Nifty 50 and BSE Sensex managed to close in the green on the week, thanks to a mix of sector-specific buying and a strong DII floor under the market.
The index opened just a few points higher on the day and then ground higher throughout the session, looking towards the 25,400 level as a mental barrier. The wider BSE Sensex too showed strength, trading at 83,200.06, up 444.55 points or 0.54% from its previous close of 82,755.51.
Yesterday, Indian markets closed sharply higher, led by the announcement of a ceasefire between Israel and Iran, which drastically lowered geopolitical risk and crashed crude oil prices. Though the initial euphoria from that development has passed, the overall positive sentiment from this de-escalation is still lending a hand to market performance.
Globally, the snapshot is still mixed. After a strong rally in many markets, some Asian indices traded flat to positive today as they made a move to consolidate their recent advance. US markets closed mixed overnight, as investors absorbed comments from Federal Reserve Chair Jerome Powell, who continued to signal a data-dependent approach to interest rate decisions while committing to “wait” with still high inflation readings. This tentative approach from the Fed has resulted in confusion for global investors about when and how fast the Fed will begin to lower rates.
Brent crude oil prices, which were hammered yesterday, started to firm up today, trading around $67.68 per barrel. This modest increase indicates either a rebound in demand or potential profit-taking after recent lows. For India, it is the sustained dip in crude prices that is the bigger positive, relieving the pressure on import bills and by extension, inflation, fanning expectations of a recovery.
As expected, the Indian Rupee gained against the US Dollar for a second straight day, a sign of better risk appetite and FII flows already seen earlier this week. The Rupee was trading at around 85.80 to the US Dollar, one of the fastest recent appreciations, advantageous for an import-dependent economy like India.
Sectoral Performance & Notable Stock Moves Along with the nascent uptrend was an incredibly strong, positive market breadth, suggesting strong, broad-based participation. The Metal and Telecommunication sectors were under sharp buying interest, rallying sectoral indices higher. That’s a very optimistic assumption to make about new infrastructure and the overall growth path of the telecom sector.
Of the Nifty 50 index’s top gainers, Jio Financial Services jumped more than 2.7%, while Bharti Airtel and Bajaj Finance rose more than 2%. The stock price of Reliance Industries increased slightly, adding to Sensex’s advances.
There were some large-cap names that saw notable selling pressure. Dr. Reddy’s Laboratories, Hero MotoCorp, and Trent were among the top Nifty losers. In the overall market, the IT sector was still under pressure, with stocks like TCS and Tech Mahindra falling more than 5.
The BSE Midcap and BSE Smallcap indices were trading in the green, though with measured advances, suggesting that the rally has not been limited to large-cap stocks.
FII net investments Provisional data as of June 25, 2025, showed Foreign Institutional Investors (FIIs) continued to be net sellers in the Indian equity cash market, selling equities worth ₹2,427.74 crore. Domestic Institutional Investors (DIIs) persisted with their strong buying, pumping in ₹2,372.96 crore, more than offsetting FII outflows. This continued DII backing has made all the difference in providing a bottom to the market from more extreme corrections and a key assurance to keep the confidence flowing.
Also check:- Indian Equities Exhibit Caution Amidst Global Cues, Nifty Holds Above 25,000
Largely, analysts have a very positive long-term outlook for Indian equities, buoyed by strong domestic fundamentals and a stable political environment. Beyond the short-term market trajectory, the actions of G7 (and other) global central banks will remain key, as will the next steps in the geopolitical situation and the next corporate earnings season. For one, the Nifty’s consistent capacity to stay buoyant above the 25,000 mark and the underlying strength in broader markets indicate that the investor mood seems to be holding firm, even as global nerves are still evident.
