Nifty and Sensex now enter uncharted territory for 2025, setting the tone for a potentially strong second half of the year
By S JHA
Mumbai, June 9, 2025 — Indian equity benchmarks extended their winning streak on Monday, with the Nifty 50 closing at a record high for calendar year 2025, buoyed by strength in PSU banks and IT stocks. The Sensex and Nifty ended higher for the fourth consecutive session, shrugging off subdued global cues and posting broad-based gains across sectors.
The Nifty 50 gained 0.40% to settle just above the 25,100 mark, its highest close since October 2024, although the index remained largely range-bound during the session, moving within a narrow 50-point band.
Key Market Highlights:
- PSU Banks led sectoral gains, with the Nifty PSU Bank index climbing 1.52%, resuming its primary uptrend.
- IT stocks, particularly Infosys and TCS, also saw strong buying interest, helping buoy overall market sentiment.
- Despite a lack of strong intraday momentum, market breadth was robust, with 78% of Nifty 50 and 75% of Nifty 500 stocks closing in the green.
- Over 80% of stocks in the Nifty 50 and Nifty 500 are now trading above their 20-day EMA, indicating sustained underlying strength.
Global Cues and Technical Setup:
Early gains were supported by strong closing cues from US and Asian markets on Friday, although European indices traded lower. Despite a small red-bodied candle, the technical structure remains bullish, analysts said.
The daily close above 25,100 confirms a breakout, with technical analysts at Angel One pointing to fresh long build-up supported by a 1.3% rise in open interest. The immediate support now lies near 25,000, with a bullish gap between 24,940 and 24,900 expected to act as a cushion. On the upside, resistance is seen around 25,250–25,300, followed by a key hurdle at 25,430.
Derivatives Data:
- Short covering was noted in 24,500–25,050 call strikes, while aggressive put writing at 25,000 and 25,100 levels suggests continued bullish positioning, said Angel One in its note.
Notable Stock Movers:
- MCX surged 7% after receiving SEBI approval to launch electricity derivatives, riding on strong volumes.
- Bandhan Bank spiked 7%, hitting a 7-month high, with volumes five times the weekly average.
- Muthoot Finance jumped nearly 4% following the RBI’s move to raise LTV on gold loans to 85% for amounts under ₹2.5 lakh.
- Wipro rose 1.09% after a block deal worth ₹5,057 crore, involving around 2% equity.
- L&T added ground after bagging orders worth ₹1,000–2,500 crore from JSW Energy.
- Afcons Infrastructure gained 2.9% on securing a ₹700 crore order from Reliance Industries for its Dahej Vinyl Project.
- Nazara Technologies rose 1% post acquiring Smaaash Entertainment for ₹126 crore in an all-cash deal.
- Jio Financial climbed over 3% after launching an early-access platform for its digital-first mutual fund offering.
- IEX gained 3.55%, continuing its strong YTD performance, now up 18% for 2025 and 74% over two years.
- BEL edged higher by 0.45%, signing an MoU with Tata Electronics to co-develop semiconductor capabilities.
- IOCL announced plans for a 10,000 tonnes/year green hydrogen unit at its Panipat refinery, slated for completion by December 2027.
Macro Boost: RBI’s Surprise Rate Cut
Adding to the positive sentiment, the RBI’s unexpected 50 basis points rate cut to 5.50%, coupled with a shift to a neutral policy stance, lifted investor confidence, particularly in financial and rate-sensitive sectors, said Angel One in its note to clients.
With technical signals aligned, strong participation across sectors, and favourable policy cues, analysts recommend a ‘buy on dips’ strategy going forward, eyeing higher targets in the weeks ahead.
Disclaimer: This article makes no recommendation for any kind of trades in the stock market.
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