Bulls charge on D-Street! Nifty tops 25,100, Sensex snaps 3-day losing streak amid broad-based buying

Dalal Street roars back to life

The Indian stock market made a sharp comeback on Thursday, June 20, 2025, as benchmark indices surged in a broad-based rally, snapping a three-day losing streak. The BSE Sensex jumped 494.28 points to close at 82,367.35, while the NSE Nifty 50 scaled a new peak, ending 152.45 points higher at 25,109.20. Bulls dominated the trading floor, powered by strong gains across sectors including banking, FMCG, IT, and real estate.

What led the rally?

Market sentiment was buoyed by multiple positive triggers. A sharp recovery in global equities, easing concerns over US Fed rate hikes, strong FII inflows, and domestic cues such as robust GST collections and firm GDP forecasts acted as tailwinds.

“Today’s rally was driven by strong global cues and healthy institutional flows. After a brief phase of consolidation, markets have resumed their upward trajectory,” said Ajay Bagga, Market Expert and former banker. “With India’s macro indicators remaining strong and political stability underpinning investor confidence, bulls are firmly in control,” he added.

Sectoral & stock-specific action

The rally was widespread, with all 13 sectoral indices on the NSE closing in the green. The Nifty Bank rose over 1.1%, led by gains in HDFC Bank, Axis Bank, and ICICI Bank. The Nifty IT index rebounded 0.9% on expectations of improved US tech spending, pushing stocks like Infosys and Wipro higher.

Meanwhile, realty stocks soared as the Nifty Realty index surged 2.8%, with DLF, Godrej Properties, and Prestige Estates witnessing strong buying interest on the back of rising housing demand and declining inventory levels in major metros.

On the broader front, midcaps and smallcaps also participated in the rally. The Nifty Midcap 100 and Nifty Smallcap 100 indices gained 1.4% and 1.7%, respectively, signaling growing risk appetite among investors.

Global cues improve

Asian markets ended mostly higher following overnight gains on Wall Street. The US Federal Reserve’s recent comments hinting at one possible rate cut in 2025 have reassured investors, despite lingering inflation concerns. European bourses opened positive, extending the optimistic tone across markets.

“Investors appear to be digesting the Fed’s updated stance. While rate cuts are likely to be slow and measured, they are still on the table, and that’s good news for equity markets globally,” said Ritu Arora, CIO at Allianz Global Investors India.

FII flows return

Foreign institutional investors (FIIs) were net buyers for the third consecutive session, pumping in ₹1,785 crore on June 19, according to NSE data. After weeks of net selling triggered by global uncertainties, their return is seen as a strong signal of confidence in India’s growth story.

“FII buying, especially in banks, infrastructure, and industrials, indicates that long-term investors are finding value at current levels,” said Harshad Mehta, Head of Research, Monarch Networth Capital.

Economic indicators support sentiment

India’s macroeconomic backdrop continues to bolster sentiment. The Finance Ministry’s latest report highlighted a 13.5% year-on-year rise in GST collections in May and robust Q4 GDP growth of 7.8%, beating expectations. Inflation has remained within the RBI’s comfort zone, with CPI at 4.75% in May.

“The consistency in high-frequency indicators suggests strong underlying demand and a resilient economy. This adds fundamental strength to the ongoing market rally,” noted Dr. D.K. Joshi, Chief Economist, CRISIL.

Technical outlook: More highs ahead?

Technically, Nifty closing above the psychological 25,100 mark signals continuation of bullish momentum. Analysts expect the index to move towards 25,300–25,500 in the near term, with support pegged at 24,800.

“The breakout above 25,000 is significant and suggests a potential move higher in the short term. Traders should trail stop-losses and ride the trend,” said Ruchit Jain, Lead Technical Analyst at 5paisa.com.

Investor outlook: Stay optimistic, but cautious

While the rally has revived bullish spirits, experts advise investors to tread carefully amid global macro headwinds. Volatility may return due to geopolitical tensions, oil price fluctuations, and upcoming earnings season.

“Retail investors should stick to fundamentally strong stocks and avoid chasing momentum blindly. It’s wise to rebalance portfolios if valuations stretch too far,” said Kavita Krishnan, Senior Portfolio Manager, Edelweiss AMC.

With domestic fundamentals intact, India’s long-term equity story remains compelling. However, disciplined investing and periodic review of asset allocation will be key in navigating short-term turbulence.

The return of the bulls on Dalal Street after three subdued sessions reflects renewed investor optimism driven by macroeconomic resilience, global tailwinds, and positive institutional flows. As the Nifty breaches the 25,100 level for the first time, the road ahead seems promising—but not without occasional speed bumps. For now, though, the sentiment remains upbeat, and the rally shows no signs of fatigue.