Markets soar for third straight day: Sensex surges 1,000 points, Nifty crosses 25,500

India’s benchmark indices extended their winning streak for the third consecutive session on June 26, buoyed by easing geopolitical concerns and strong buying in banking, metal, and oil & gas stocks. The BSE Sensex soared 1,000.36 points, or 1.21 per cent, to close at 83,755.87, while the NSE Nifty 50 index jumped 304.25 points to settle at 25,549. Both indices touched their highest levels in nearly nine months.

The rally, driven by heavyweight performers such as HDFC Bank, Reliance Industries, Tata Steel, and Bharti Airtel, pushed the market capitalisation of BSE-listed companies up by ₹3.33 lakh crore ($38.84 billion) on June 26 alone. Over the past three sessions, investor wealth has grown by ₹9.70 lakh crore ($113 billion), with the total market cap reaching ₹457.33 lakh crore (approximately $5.34 trillion).

Financials and metals lead the charge

Market sentiment was upbeat across key sectors. Nifty Bank ended at a record high of 57,207, rising 586 points, supported by strong moves in private bank shares like HDFC Bank and ICICI Bank. Financials and metal shares outperformed, with the Nifty Metal index gaining 2.3 per cent, led by stocks like Tata Steel, Jindal Steel, Vedanta, and Hindustan Copper. Oil marketing companies such as IOC, BPCL, and HPCL also saw robust gains of around 3 per cent each. Broadly, financial services, metals, oil & gas, energy, and utilities indices posted 1–2 per cent gains. On the flip side, IT, realty, and media stocks ended in the red.

Among the top performers were Bharti Airtel and HDFC Bank, both crossing ₹2,000 per share for the first time. A total of four Nifty stocks—Bharti Airtel, HDFC Bank, HDFC Life, and Grasim—hit record highs during the session.

Broader markets also participated in the rally, though to a lesser extent. The BSE Midcap index climbed 0.56 per cent, while the Smallcap index edged up 0.12 per cent. However, market breadth was neutral, with 2,097 stocks advancing, 1,900 declining, and 156 remaining unchanged on the BSE.

Rupee strengthens, FIIs trim holdings

The Indian rupee strengthened to a two-week high, closing at 85.7050 per dollar (provisional), rising 0.4 per cent on the back of dollar weakness amid concerns over the future independence of the US Federal Reserve. Despite the market rally, foreign institutional investors (FIIs) continued to pare holdings due to narrowing yield spreads between US and Indian 10-year bonds. Meanwhile, domestic institutional investors (DIIs) emerged as net buyers, buoyed by improving liquidity and a recovery in consumption trends.

Asian markets mixed; Japan outperforms

Elsewhere in Asia, markets ended mixed. Japanese indices hit near five-month highs, powered by tech stocks, while South Korea's market declined on profit booking. China’s Shanghai Composite closed 0.22 per cent lower as investors weighed lingering economic and geopolitical risks. Gold ticked higher in Asian trade amid dollar weakness, and oil prices rose on signs of strong US crude demand.

With geopolitical concerns abating and domestic fundamentals stabilising, Indian equities appear to be regaining strong upward momentum, even as global cues remain cautiously optimistic.