Indian benchmark indices traded with a positive bias in early morning deals on Wednesday, continuing the gains of the previous day with a strong bias but lacking conviction, as investors weighed mixed global cues and awaited further clarity on the geopolitical front. Fears around global inflation, as well as the approach of the US Federal Reserve regarding interest rates, are still dampening spirits.
As of now, the Nifty 50 was trading at 25,192.15, up 47.8 points or 0.19% from its previous close of 25,144.35. The index had opened strong at 25,150.35 and continued some profit bookings. The wider BSE Sensex too gained slightly, quoting at 82,568.89, up 51.78 points or 0.06% from the last close of 82,517.11.
Yesterday, both indices had closed sharply higher, with the Nifty up 72.45 points and the Sensex up 158.32 points, thanks largely to the news about a reported ceasefire agreement between Israel and Iran. In recent weeks, this highly positive development has greatly lessened geopolitical risk premiums and contributed to a very sizable decline in crude oil prices.
The global picture has definitely gotten both brighter and more tentative. Though the mood has brightened since ceasefire hopes probably lifted sentiment, investors’ patience is wearing thin for more clarity and waiting on Australia’s biggest CPI print. In the US, Wall Street rallied on Tuesday, with the Dow Jones, S&P 500, and Nasdaq Composite all closing higher. This was in no small part due to the words of the Federal Reserve Chair Jerome Powell, indicating the central bank is “well positioned to wait” on interest rate adjustments with inflation still hanging around and unknowns surrounding the trade tariffs.
Related crude oil values, which plummeted yesterday on the peaceful resolution of heightened Middle Eastern tensions, made some tentative recovery today. Brent crude traded just over $67.14 per barrel on Monday, though still well below its peaks in recent weeks, showing signs as the market waits in wary optimism that the worst of the drop has passed after a steep decline. In the longer term, lower crude prices would be a net positive for India, allowing the country to better tackle imported inflation.
The market breadth on the NSE was sharply positive, with advancing stocks outnumbering declining ones. The Nifty Auto and Nifty PSU Bank indices were two of the leading sectoral gainers during early trade, indicating continued investor preferences in these sectors.
Among the individual stocks in Nifty 50, Tata Consumer Products, Nestle India, Titan Company, Hindustan Unilever (HUL), and HCLTech were early gainers – signaling incremental buying interest towards relatively more defensive and/or consumer-oriented names. Eicher Motors, Kotak Mahindra Bank, IndusInd Bank, Bharat Electronics (BEL), and SBI Life Insurance were under pressure to sell in the morning session.
In the broader market, the Nifty MidCap and Nifty SmallCap indices remained very well bid, continuing their relative outperformance from yesterday, a good sign of broadening out participation led by retail and high-net-worth individual investors. This resilience in the broader market is an indicator of underlying confidence even with the benchmark indices appearing to act defensive.
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According to Provisional data for June 24, 2025, Foreign Institutional Investors (FIIs) turned net sellers in the cash market, selling equities worth ₹5,266.01 crore. DIIs, or domestic institutional investors, offered key support—turning net buyers with an inflow of ₹5,209.60 crore. Perhaps the biggest positive has been this continuing absorption of FII selling by DIIs, a theme that has been exceptionally consistent, underscoring the strong domestic liquidity and participation of retail investors. When we look into the derivatives segment, FIIs exhibited high net selling in Index Options.
According to the experts, although Nifty has successfully about 25,000 runs, Nifty is now seeing resistance at the level of 25,200-25,300. A clear breakout above these levels would be required for an extended rally higher. Immediate support is defined in the 24,900-25,000 area. Even the India VIX, a measure of the expected short-term volatility in the markets, stayed low, a sign that is usually positive for the markets.
Looking forward, investors will be focused on the geopolitical front, global inflation data, and continued central bank commentary on the direction of monetary policy. Finally, corporate earnings season, which is expected to start ramping up significantly over the next few weeks, will be another big driver of market direction. In the short term, Indian markets continue to be optimistic, with robust domestic support acting as a buffer to global headwinds.
