Indian Markets Extend Weekly Gains Amid Ceasefire Optimism and FII Inflows

Indian equity markets closed the week on a positive note for the second consecutive time, buoyed by multiple supportive factors including declining crude oil prices, easing geopolitical tensions in the Middle East, continued foreign and domestic investor interest, and an encouraging monsoon outlook.

For the week ending June 27, the BSE Sensex surged 1,650.73 points (2%) to settle at 84,058.90, while the Nifty50 rose 525.4 points (2.09%) to close at 25,637.80.

Strong buying activity was witnessed across major indices. The BSE Large-cap index gained over 2%, led by notable performances from IDBI Bank, Adani Total Gas, Jio Financial Services, Adani Power, Hyundai Motor India, Berger Paints India, Polycab India, and Adani Enterprises.

The BSE Mid-cap index also climbed more than 2%, supported by stocks like Brainbees Solutions, Hindustan Petroleum, Abbott India, Bayer CropScience, Page Industries, and Punjab & Sind Bank. However, some laggards included KPIT Technologies, Godrej Industries, Oil India, Ola Electric Mobility, Oracle Financial Services, and PB Fintech.

The Small-cap segment outperformed, registering a strong 3.5% gain. Stocks like Kirloskar Brothers, Balaji Amines, Astec Lifesciences, Steel Exchange India, Mukand, Bajel Projects, Bajaj Consumer Care, and Nuvama Wealth Management each jumped over 20%. On the downside, Sadhana Nitrochem, Infibeam Avenues, Timex Group, and Confidence Petroleum recorded declines of 10% to 22%.

Currency markets also reflected the upbeat mood. The Indian rupee ended its four-week losing streak, appreciating by 110 paise to close at 85.49 per dollar on June 27, compared to 86.59 on June 20.

Sectorally, Nifty Media led the gains with a 4.3% jump, followed by Nifty Metal (+4%), Nifty Oil & Gas (+3.2%), and Nifty PSU Bank (+2.5%). Conversely, Nifty Realty lost nearly 2%, while Nifty IT dipped by 0.4%.

Among individual stocks, Reliance Industries added the most market value during the week, followed by Bharti Airtel, HDFC Bank, and Bajaj Finance. Meanwhile, Infosys, Maruti Suzuki, and HCL Technologies witnessed the most significant erosion in market capitalization.

Investor sentiment remained strong with Foreign Institutional Investors (FIIs) continuing their buying spree, investing ₹4,423 crore in equities during the week. Domestic Institutional Investors (DIIs) also remained net buyers for the tenth week in a row, pumping in ₹12,390.17 crore.

As geopolitical tensions ease and institutional inflows persist, Indian markets appear to be on a firm footing heading into the next quarter.