Indian equities staged a strong rebound on June 24, with benchmark indices posting their biggest gain in several sessions as falling crude oil prices, easing foreign investor selling and optimism over an India-US trade agreement boosted investor confidence. Heavy buying in banking, financial and IT stocks powered the rally, helping the Nifty reclaim the 24,000 mark.
The Sensex climbed 791 points, or 1.04 percent, to close at 76,991.22, while the Nifty 50 gained 198 points, or 0.83 percent, to end at 24,021.65. Broader markets lagged behind the benchmarks, with the Nifty Midcap 100 rising 0.10 percent and the Smallcap 100 adding 0.39 percent.
The rally added more than ₹1 lakh-crore to investor wealth, taking the total market capitalisation of BSE-listed companies above ₹476 lakh-crore.
The market's advance was driven largely by heavyweight banking, financial and information technology stocks. The Nifty IT index gained over 2 percent, while the Bank Nifty, Nifty Private Bank and Nifty Financial Services indices rose more than 1.5 percent each.
Major contributors to the Sensex and Nifty gains included HDFC Bank, ICICI Bank, Infosys, Bajaj Finance and State Bank of India.
Improving sentiment towards the IT sector, aided by a stronger dollar and expectations that artificial intelligence-related investments could create long-term opportunities, attracted fresh buying. Banking stocks benefited from sustained credit growth and expectations that loan demand will remain healthy in the coming quarters.
Market experts believe part of the recent strength in Indian equities may stem from a shift in global investment flows. After a prolonged rally in artificial intelligence and semiconductor-related stocks, investors are increasingly looking at markets that offer broader growth opportunities and relatively stable valuations.
India has emerged as a beneficiary of this trend, especially as volatility increases in AI-driven sectors and technology-heavy markets such as South Korea and Taiwan.
A sharp decline in crude oil prices provided another major tailwind. Brent crude slipped towards the $75-per-barrel level after signs of progress in US-Iran diplomatic efforts reduced concerns over supply disruptions.
Lower oil prices are particularly beneficial for India, which imports most of its crude requirements. Softer energy costs can help contain inflation, reduce the trade deficit and support economic growth.
Investor sentiment was also supported by reports that India and the US are close to finalising a bilateral trade agreement. Expectations that a deal could improve market access and strengthen economic ties between the two countries added to the positive mood on Dalal Street.
Foreign portfolio investor (FPI) selling has moderated significantly in recent weeks. Improved stability in the rupee, lower oil prices and favourable global risk sentiment have encouraged overseas investors to return selectively to Indian equities.
Exchange data showed FPIs were marginal net buyers in the previous session, reinforcing hopes that foreign outflows may be nearing an end.
Technical indicators suggest the market's near-term momentum remains constructive. Analysts note that the Nifty has regained important short-term moving averages after finding support around key levels earlier this week.
Immediate resistance is seen around the 24,150 zone. A decisive move above this level could open the way towards 24,300 and then 24,450. On the downside, support is placed near 23,900, with 23,800 expected to remain a crucial floor for the index.
Sensex: 76,991.22 (+791.32 points, +1.04 percent)
Nifty 50: 24,021.65 (+197.95 points, +0.83 percent)
Nifty Midcap 100: +0.10 percent
Nifty Smallcap 100: +0.39 percent
Brent crude: Near $75 per barrel
Investor wealth: Up by more than ₹1 lakh crore
BSE market capitalisation: Above ₹476 lakh-crore