Stock Markets Soar as FIIs Ride Bulls to Storm Street amid VIX Dip

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Markets Rise to Record Weekly Close as Financials, Autos, Reliance Lead the Charge

By S JHA

MUMBAI, June 20, 2025 – Foreign institutional investors (FIIs) came all guns blazing on Friday to pump stock markets to record weekly gains amid signs of the US not yet decided in joining the Iran-Israel conflicts. Indian equity markets closed the week on a strong note with benchmark indices surging, buoyed by upbeat global cues, policy support from the RBI, and robust buying across key sectors including financials, autos, and heavyweight Reliance Industries.

The Nifty50 rallied 1.2% to close at 25,112, notching its highest weekly close of the calendar year, while the Sensex surged over 1% to settle near 82,300. “Volatility eased notably as the India VIX fell nearly 7%, suggesting reduced investor anxiety and increased risk appetite,” said StockEdge in an analysis on its telegram channel.

Broad-Based Buying Fuels Rally

All major sectors ended in the green, led by PSU banks, autos, infrastructure, and realty. According to data from StockEdge and Angel One:

Reliance Industries jumped over 2%, making a significant contribution to Nifty gains.
Power Finance Corporation and REC Ltd. surged over 3-5% following the RBI’s decision to ease project-financing norms from October 2025.
State Bank of India and Bank of Baroda rallied on an improved credit outlook.
Tata Motors and Mahindra & Mahindra advanced on strong sales prospects and steady demand.
HDFC Bank and ICICI Bank witnessed institutional buying, lending further support to the rally.

Mid- and small-cap segments also saw positive action — the Nifty Midcap 100 rose nearly 0.9%, and the Smallcap 100 gained 0.8%, reflecting broad-based investor participation.

Technical Breakouts and FII Flows Support Sentiment

Markets gained strength after the US Federal Reserve kept interest rates unchanged and stuck to two potential rate cuts in 2025, boosting global risk appetite. Stabilizing crude oil prices also eased input cost concerns for Indian companies, added StockEdge.

Technically, the Nifty reclaimed crucial short-term averages, including the 10-EMA and 20-EMA, with RSI rising from 51 to 59, indicating strengthening momentum. “Open interest jumped 8%, and call option short-covering was seen across the 24,600–24,900 range, particularly at the 24,800 strike,” said Angel One in a note to its cleints.

“The breakout above the 25,000 mark marks a strong bullish structure with potential to test the 78.6% Fibonacci retracement near 25,300,” said market analysts at Angel One.

Key Stock Movers

Waaree Energies soared 11.9% on expectations of inclusion in the FTSE Global Index, which could bring in up to $49 million in passive inflows.
Aether Industries gained after securing a 10-year contract worth ₹200 crore with global firm Milliken.
NTPC Green Energy rose 6% following a top-tier credit rating from India Ratings.
Sai Life Sciences announced the completion of a major capacity expansion at its Bidar facility.
Ola Electric was in focus ahead of the August 8 end of its lock-in period, with 44 crore shares set to become tradable.

Market Outlook: Watch 25,300 Resistance

Market participants believe that the 24,700–24,800 range will act as strong support for Nifty in the near term. “On the upside, a breakout past 25,300 could trigger another leg of bullish momentum. For Nifty Bank, support lies at 55,400 and resistance at 56,800,” added StockEdge.

The FIIs bought a net of ₹7911 crores in the Indian markets. Their domestic counterparts reported a net sell of ₹3040 crores on Friday. While the sentiment remains bullish, analysts caution that investors should remain vigilant against sudden global developments. “It’s a good time to ride the strength, especially in financials and autos, but with one eye on geopolitical and macroeconomic shifts,” said StockEdge in its analysis.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock markets)

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