The market is abuzz today on June 25, with benchmark indices extending gains, with Nifty rising up to 0.96% or 224 points to 24,246 and Sensex is up 750 points from the day's low, and is trading 0.98% higher to 77,750, as of 12:05 pm.
This surge comes against the backdrop of several positive cues, including easing geopolitical tensions, declining crude and global cues.
Harshal Dasani, Business Head at INVAsset PMS, said Thursday's rally in Indian equities was largely driven by improving global sentiment rather than any domestic trigger. He noted that the sharp correction in crude oil prices is particularly positive for India, as it removes one of the biggest macroeconomic overhangs. Dasani added that the improving global risk environment could also encourage foreign institutional investors (FIIs) to return to Indian equities, providing an additional tailwind for the market.
Most sectors are in the green, with gains led by Auto which is up over 2.8%, followed by Realty and Consumption. Metal is down 0.65%.
The broader indices are trading positively, with Nifty Smallcap 250 flat, higher by just 0.02%, while the Midcap 150 rose 0.22%.
Here are three reasons the markets are gaining today:
US-Iran Peace Deal
While negotiations between Washington and Tehran remain complex, both sides have signalled progress following their initial round of talks, raising hopes that the conflict could move towards a lasting resolution.
NATO Secretary General Mark Rutte played to President Donald Trump's love of praise and splashy visuals during a visit to Washington that was aimed at easing the US leader's anger over alliance nations' reluctance to help with the campaign against Iran.
Meeting Trump in the Oval Office, Rutte displayed posters that featured gold lettering and bright red bar charts labeled “The Trump Trillion” and “The Trump 47 Effect.” They highlighted how much more money NATO nations have spent on defense since Trump first took office in 2017.
Crude At Pre-War Level
Oil prices extended their decline on Thursday, with Brent crude falling to its pre-war levels as improving supply conditions and optimism over a potential US-Iran peace agreement continued to weigh on the market.
Brent crude dropped more than 1.52% to around $72.4 a barrel, while US benchmark West Texas Intermediate (WTI) fell 1.43% to about $69.3 a barrel. The latest decline follows a sharp 4% drop in the previous session, leaving Brent at its closing price before the US-Iran conflict began.
The retreat comes as traders increasingly unwind the geopolitical risk premium that had driven oil prices sharply higher earlier this year.
ALSO READ: Oil Drops To Pre-War Level: Brent Crude Slips To $72, Erasing All Gains From US-Iran War
Positive Global Cues
Global cues remained supportive on Thursday, led by a rally in US technology stocks after Micron Technology delivered better-than-expected quarterly results and an upbeat revenue forecast, reigniting optimism around AI-driven semiconductor demand.
S&P 500 futures gained around 0.5%, while Nasdaq 100 futures jumped nearly 1.8%, with Micron surging about 15% in after-hours trade. Qualcomm also climbed 14% after raising its long-term revenue guidance, lifting sentiment across the broader chip sector. Investors are also awaiting the release of the US May inflation data later in the day for further clues on the Federal Reserve's policy path.
In Asia, markets traded mixed but with a positive bias, as South Korea's Kospi rallied more than 5%, Japan's Nikkei 225 gained around 4%, and China's CSI 300 advanced 1.6%, while Hong Kong's Hang Seng and Australia's S&P/ASX 200 lagged.
However, Dasani cautioned against reading too much into a single day's rally. In his view, the durability of the uptrend will depend on whether geopolitical de-escalation continues, the direction of global capital flows and the strength of the upcoming corporate earnings season. Given these uncertainties, he believes investors should maintain a constructive but measured stance rather than aggressively chasing the recent rebound.
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