Indian equity benchmarks staged a powerful rally on Monday, June 24, closing at fresh record highs, fueled by a resurgence in foreign capital and a supportive global market environment. The buying spree was broad-based, lifting key indices and investor sentiment significantly.
Market Performance: A Day of Record Highs
The 30-share BSE Sensex jumped a substantial 638 points, or 0.74%, to settle at a new closing peak of 86,079.36. During the trading session, it even touched an all-time intraday high of 86,294.49. Mirroring this bullish trend, the broader NSE Nifty 50 climbed 191 points, or 0.74%, to end at 26,091.20. The Nifty also hit a lifetime intraday high of 26,158.25, marking a historic day for Indian markets.
This impressive surge was not limited to the headline indices. The BSE Midcap index gained 0.71%, while the BSE Smallcap index advanced by 0.84%, indicating widespread participation across market capitalizations. The overall market breadth was positive, reflecting strong investor confidence.
Key Drivers Behind the Rally
Analysts and market experts point to two primary catalysts for Monday's sharp upmove. The most significant factor was the return of foreign institutional investors (FIIs) as net buyers. After a period of sustained selling, the influx of foreign capital provided a major boost to market liquidity and sentiment. Domestic institutional investors (DIIs) also remained net buyers, adding to the positive momentum.
The second major driver was firm global market trends. Asian markets, including Hang Seng and Nikkei, traded positively, while European markets opened higher. This created a conducive external backdrop for the Indian rally. Additionally, a slight softening in crude oil prices offered some relief to the import-dependent Indian economy.
Sectoral Performance and Stock Highlights
The rally was led by several key sectors. Banking and financial stocks were among the top performers, with heavyweights like HDFC Bank and ICICI Bank contributing significantly to the Sensex gains. The IT sector also saw robust buying interest. On the flip side, FMCG and consumer durables stocks witnessed some profit-booking.
From the Sensex basket, major gainers included:
- UltraTech Cement
- Mahindra & Mahindra
- Power Grid Corporation
- NTPC
- Axis Bank
Only a handful of stocks, such as Nestle India and Hindustan Unilever, ended the session in the red.
Market Outlook and Expert Commentary
Market participants are now cautiously optimistic about the sustainability of this rally. The renewed FII interest is seen as a crucial factor for the market's upward trajectory. However, experts advise investors to remain vigilant about upcoming domestic and global macroeconomic data, including inflation figures and central bank policies.
The record-breaking close has set a bullish tone, but volatility may persist due to factors like the upcoming Union Budget and global geopolitical developments. Analysts suggest that a stock-specific approach with a focus on fundamentally strong companies is prudent in the current market scenario.
The strong performance on June 24 underscores the resilience of the Indian markets and their attractiveness to global investors when macroeconomic conditions appear favorable. The focus now shifts to whether the momentum can be sustained in the coming sessions.
