Indian Markets Extend Rally for Third Consecutive Day Amid Geopolitical Calm & Crude Market Softening

Indian benchmarks extended their winning streak for the third straight session on June 26, 2025, buoyed by easing geopolitical tensions and softer crude prices.

BSE Sensex surged early by 502 points and was trading at 83,116.14, up 360.63 points (+0.44%).

NSE Nifty rose 131.60 points to 25,376.35, a gain of 0.57%.

These gains follow nearly 1% increases over the prior two sessions, pushing indices towards nine‑month highs.

Key Drivers Behind the Rally

Geopolitical Relief:

Ceasefire developments between Iran and Israel have alleviated investor fears, reducing volatility and lifting global equities.

Weaker Crude & Dollar:

A softer crude market and falling greenback boosted demand for metals and commodities, supporting India-incumbent sectors.

F&O Expiry Volatility:

With monthly expiry due the next day, markets saw added volatility around the 25,400–25,500 Nifty band.

Foreign Fund Outflows:

Despite continued FIIs selling ₹9,500 crore over three sessions, domestic interest and favorable macros helped sustain the rally.

Sector Highlights

Metals led sectoral gains with a ~1% rise, powered by the easing dollar.

Financials and large-caps like HDFC Bank (+0.7%) and Reliance (+1.3%) showed robust performance.

Defense stocks gained 1–2%, riding global defense spending optimism.

Expert Outlook

Market experts anticipate a positive open for Friday, supported by a 40-point uptick in GIFT Nifty and ongoing global tailwinds.

Geopolitical calm and macroeconomic optimism continue to power Indian equities. While derivative expiry and foreign outflows add short-term volatility, sustained rally momentum suggests markets remain on a robust trajectory—though fresh triggers will be vital to maintain this positive trend.