Sensex Today Extends Gains to 4th Straight Session, Rises Over 250 Points; Nifty Above 25,100; Financials Shine

Mumbai, June 9, 2025 — Extending its bullish momentum for the fourth consecutive trading session, the Indian stock market closed in the green on Monday, driven primarily by strong buying in banking and financial services stocks. The benchmark BSE Sensex climbed 260.45 points, or 0.34%, to close at 82,010.93, while the NSE Nifty 50 advanced 74.25 points, or 0.30%, to settle at 25,123.65.

The rally was underpinned by renewed investor optimism post-election clarity, steady global cues, and robust performance from heavyweights in the financial sector, which continued to lead the market rally.

Financials Lead the Charge

The Nifty Bank index rose by over 1.1%, with notable contributions from ICICI Bank, Axis Bank, and State Bank of India. HDFC Bank also witnessed renewed buying interest, gaining nearly 1% on expectations of improved deposit and credit growth guidance in the upcoming quarters.

“Financials are clearly benefiting from both macro and sector-specific tailwinds,” said Shibani Kurian, Head of Equity Research at Kotak Mahindra Asset Management. “The easing of bond yields, robust quarterly earnings, and rising credit demand create a favorable backdrop for banks and NBFCs.”

Among financial stocks:

• ICICI Bank gained 1.5%

• Axis Bank rose 1.3%

• SBI surged 1.6%

• Bajaj Finserv climbed 2.1%

• HDFC Life saw gains of 1.2%

Sector-Wise Performance

Apart from financials, selective buying was seen in FMCG, auto, and realty stocks. Meanwhile, IT, pharma, and metal sectors saw mild profit booking.

• Nifty Financial Services: +1.08%

• Nifty FMCG: +0.42%

• Nifty Realty: +0.57%

• Nifty IT: -0.24%

• Nifty Metal: -0.31%

Infosys, Wipro, and Tech Mahindra dragged the IT index, even as analysts noted that the weakness is likely temporary. "The recent uptrend in tech stocks may pause as investors rebalance portfolios toward value sectors like banking and energy," noted Ravi Singh, Market Strategist at Mehta Equities.

Broader Market and Volatility Trends

The BSE MidCap and SmallCap indices underperformed slightly but remained in positive territory, signaling a broad-based rally. Market breadth remained strong with nearly 1,900 stocks advancing, compared to 1,400 declining on the BSE.

The India VIX, which measures market volatility, edged lower by 3.2% to 13.85, indicating a calming of market nerves following the general election results and policy continuity at the Centre.

Global Market Cues Remain Supportive

Global equity markets were stable as investors looked ahead to key economic data from the US and Europe this week. The US Federal Reserve’s policy decision, expected on Wednesday, is likely to influence global risk sentiment. While no rate cut is expected in June, dovish commentary may buoy investor sentiment globally.

Asian markets were mixed:

• Nikkei 225 rose 0.8%

• Hang Seng dropped 0.3%

• Shanghai Composite closed flat

Rupee and Crude Oil Movement

The Indian rupee ended stronger at ₹83.12 per dollar, supported by foreign fund inflows and a dip in crude oil prices. Brent crude futures slipped to $77.90 per barrel, easing pressure on India’s oil import bill.

"Lower oil prices, a stable rupee, and strong FII inflows are creating a goldilocks scenario for the Indian market," said Ajay Bagga, Market Veteran and Independent Analyst.

Investor Outlook: What Lies Ahead?

The continuation of gains in major indices reflects growing investor confidence in the resilience of India’s macro fundamentals and corporate earnings outlook. Analysts believe the Nifty 50 may test 25,500 levels in the near term if current momentum sustains.

However, short-term volatility cannot be ruled out ahead of the US Fed meeting, inflation data, and monthly F&O expiry.

“While the index shows strength, valuations are getting stretched in pockets. Investors should focus on earnings-backed stories and avoid chasing momentum blindly,” warned Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services.

Top Gainers and Losers on Nifty 50

Top Gainers:

• Bajaj Finserv (+2.1%)

• SBI (+1.6%)

• ICICI Bank (+1.5%)

• Axis Bank (+1.3%)

• HDFC Life (+1.2%)

Top Losers:

• Infosys (-0.9%)

• Dr Reddy’s (-0.8%)

• Tata Steel (-0.7%)

• Wipro (-0.6%)

• Tech Mahindra (-0.5%)

As Indian equities extend gains for the fourth straight session, led by a strong comeback in financials, investors appear optimistic about India’s near-term economic trajectory. Market experts advise selective stock picking and a sectoral rotation approach to navigate upcoming global triggers.