Indian stock market benchmarks, the Sensex and Nifty 50, registered strong gains on Friday, June 20, despite rising tensions between Israel and Iran.
The Sensex began the session at 81,354.85, slightly lower than its previous close of 81,361.87, but surged by 1,133 points or 1.4% to touch an intraday high of 82,494.49. Meanwhile, the Nifty 50 opened at 24,787.65 compared to its prior close of 24,793.25 and climbed 1.4% to reach an intraday peak of 25,136.20.
By the end of the trading day, the Sensex had advanced 1,046 points or 1.29% to close at 82,408.17, while the Nifty 50 ended 319 points or 1.29% higher at 25,112.40.
“Markets witnessed consolidation after the recent spell of subdued trend, as strong European cues and positive Dow Futures triggered a massive rally in local benchmarks. Investors also resorted to short covering ahead of next week’s monthly derivatives expiry. Despite the rebound, investors would still maintain caution due to the ongoing West Asia conflict, as any spike in crude oil prices owing to escalation in tension could fuel uncertainty and spook markets, ” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Indian stock market trends
Markets remained in a consolidation phase for the fifth straight week but still closed with healthy gains, supported by reduced geopolitical tensions and a revival in foreign institutional investor (FII) activity, which boosted overall sentiment.
Although the week began on a subdued note, indices gained momentum in the latter half, driven largely by strong performances in heavyweight sectors like banking and IT. As a result, the benchmark indices—Nifty and Sensex—finished near their weekly highs at 25,112.40 and 82,408.17, respectively.
Rupak De, Senior Technical Analyst at LKP Securities, said on Nifty outlook, “Nifty moved up sharply after three days of consolidation, resuming its short-term rally. Moreover, the index has reclaimed the 21-day EMA, which could provide further momentum for an upward move. Support is now placed at 24,850, and the index remains a ‘buy on dips’ as long as it holds above this level. On the higher side, it may continue advancing towards 25,350 and beyond.”
On the Bank Nifty outlook, Ajit Mishra – SVP, Research, Religare Broking Ltd, said, “ The banking index has demonstrated resilience, driven especially by renewed participation from private banking majors like HDFC Bank and ICICI Bank, which had been relatively inactive in recent weeks. The index has reclaimed levels above the 56,000 mark and could now gradually advance toward the 57,000 and 58,200 levels. On the downside, the 54,000–55,100 zone is expected to provide a cushion in case of a pullback.”
Here are the key triggers for stock markets in the coming week:
Israel-Iran war
The conclusion of the Israel-Iran conflict could have a major impact on global market sentiment. If the two nations reach a diplomatic resolution, the Indian stock market may witness a strong upward breakout.
“The Nifty, which has been trading within the 24,500-25,000 range for about a month now, is likely to remain within this range in the near term. The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
India-US trade deal
The US-India trade agreement is expected to play a crucial role in influencing the domestic market. India is optimistic that the two nations will conclude the deal before the implementation of Trump’s ‘reciprocal tariffs’ scheduled for July 9.
IPO Activity: 17 new IPOs, 8 listings
The primary market will witness opening of 17 new public issues next week, including six in mainboard and eleven in SME segment. Apart from new public issues, the market will also witness eight new listings next week.
FII Activity
Foreign institutional investors (FIIs) maintained their buying momentum on June 20, recording a net equity purchase of ₹7,940.70 crore — the third highest single-day inflow of the year, as per provisional data. This also marked the fourth straight day of FII inflows in June, making it the longest such streak for the month.
“The trend of Foreign Portfolio Investment (FPI) experienced a reversal in April and demonstrated considerable strengthening in May, characterised by positive inflows. The inflows recorded in May represented the highest level observed in eight months, signifying a resurgence of interest from foreign investors in the Indian markets. Nonetheless, geopolitical tensions, including the conflict between Israel and Iran, alongside global uncertainties, fostered a cautiously optimistic pattern in June,” said Vipul Bhowar, Senior Director – Listed Investments, Waterfield Advisors.
Crude oil prices
Oil prices declined on Friday after the U.S. introduced new sanctions related to Iran, signaling a diplomatic move that raised expectations of a possible negotiated resolution. This came a day after President Donald Trump mentioned he could take up to two weeks to decide on U.S. participation in the Israel-Iran conflict. Brent crude futures dropped by $1.84, or 2.33%, to close at $77.01 per barrel.
Technical View
According to Ajit Mishra of Religare Broking, Nifty has once again approached the upper band of its consolidation range. “ A sustained move above the 25,200 level would confirm a breakout, potentially opening the door for a rally toward the 25,600–25,800 zone. On the downside, 24,700 and 24,400 will serve as immediate and crucial support levels,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
