NSE Nifty 50 reclaims 25,000, next hurdle at 25,300

Mumbai, June 11, 2025 — In a resounding display of investor confidence and bullish momentum, the NSE Nifty 50 surged past the 25,000 mark in intraday trade on Tuesday, reclaiming this psychological milestone for the first time since its recent correction. Backed by solid domestic macroeconomic data, robust foreign inflows, and strong earnings optimism, the benchmark index closed at 25,047.80, up 172.65 points (0.69%), setting the stage for a potential move toward the next technical resistance near 25,300.

Macroeconomic Boost and Global Tailwinds

The recovery was underpinned by strong GDP data released last week, which showed India’s Q4 FY2024 GDP growing at 7.8%, surpassing consensus expectations of 7.5%. The performance reaffirmed the country’s position as the world’s fastest-growing major economy.

Additionally, global equity markets offered positive cues as inflation in the U.S. moderated slightly and hopes of a rate cut by the Federal Reserve in the latter half of the year resurfaced. Asian markets closed largely in the green, with the Nikkei 225 and Hang Seng also posting solid gains, aiding sentiment at home.

Sectoral Performance: Banks and IT Lead the Charge

Among sectoral indices, Nifty Bank, Nifty IT, and Nifty FMCG outperformed, with heavyweights like HDFC Bank, Infosys, and HUL contributing significantly to the gains. Nifty Bank added over 1.2%, led by strong interest in PSU banks and private lenders.

“Financials have been major drivers today, benefiting from improved asset quality outlook and steady credit growth. IT also rebounded on renewed hopes of rate easing in the U.S., which could support tech spending,” said Neeraj Chawla, Head of Research at Zenith Securities.

Technical View: 25,300 as Next Resistance

From a technical standpoint, analysts suggest that the Nifty’s ability to close above 25,000 is a strong bullish signal. However, the index faces its next immediate hurdle at 25,300, where selling pressure could emerge.

“The index has convincingly reclaimed the 20-day moving average and formed a bullish candle on the daily chart. If Nifty sustains above 25,100 in the next session, we expect a move toward 25,300-25,350. Support remains firm around 24,800,” said Rupal Shah, Technical Analyst at Angel One.

Institutional Activity: FIIs Turn Net Buyers

Foreign Institutional Investors (FIIs) turned net buyers for the third consecutive session, pumping in over ₹2,745 crore into Indian equities, as per provisional data from the exchanges. Domestic Institutional Investors (DIIs) also added net ₹1,320 crore, highlighting broad-based buying interest.

“The macro backdrop, coupled with political stability and ongoing reforms, is drawing renewed interest from foreign funds. With global liquidity remaining supportive, India continues to remain a top overweight in emerging market portfolios,” noted Ajay Mahajan, CIO at Maple Capital.

Market Breadth and Volatility

Market breadth on the NSE remained firmly positive, with 1,582 advancing stocks compared to 390 declines. The India VIX, a measure of market volatility, dropped by 4.2% to 11.32, indicating improved investor confidence and reduced short-term fear.

Midcaps and smallcaps continued to outperform, reflecting retail investor participation and broader market health. The Nifty Midcap 100 rose 1.1%, while the Nifty Smallcap 100 gained 0.85%.

Investor Outlook: Optimism with Caution

While the market sentiment has turned positive, analysts advise a cautious approach given the proximity to all-time highs and global event risks.

“With the Budget around the corner and global central bank meetings scheduled in the coming weeks, investors should brace for some volatility. However, structural trends remain positive. We suggest buying quality stocks on dips and focusing on sectors like BFSI, capital goods, and auto ancillaries,” said Meenal Desai, Fund Manager at Quantum Mutual Fund.

The reclaiming of 25,000 by Nifty 50 marks a key psychological and technical breakthrough, signaling that bulls are regaining control after a period of consolidation. With robust fundamentals, strong institutional support, and improving global cues, the index appears poised for further upside — provided it clears the critical resistance at 25,300. Investors are advised to stay nimble and watch for confirmation signals in the coming sessions.