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Informist, Thursday, Jun. 26, 2025

By Simran Rede

MUMBAI – Headline indices surged in the last couple of hours in Thursday's session due to short covering by investors ahead of the monthly expiry of the Nifty 50's derivatives contract. Both indices, which consolidated for most of the session, ended at their highest levels since Oct. 1. Volatility in the market surged on the expiry of the Nifty 50 monthly derivatives contract. India VIX, the market's fear gauge, jumped as much as 3% to its intraday high, but reversed gains in the final hour of trade and closed 3% down at 12.5900. 

A rise in heavyweights such as HDFC Bank and Reliance Industries aided the late surge in the Nifty 50. The easing of geopolitical tensions in West Asia also boosted investor sentiment. Foreign investors have been investing in initial public offerings of domestic companies as the market conditions look strong, market participants said.

Indian benchmark indices outperformed most of their global peers amid recent uncertainties. Even though the ceasefire in West Asia has aided sentiment globally, investors preferred investing in Indian equities as they seemed safer assets compared with other markets. US Federal Reserve Jerome Powell signalled that inflation in the US is likely to rise to 2.3%, with the core PCE, which excludes food and energy, expected to edge up to 2.6%. This fanned concerns about inflationary pressures and the potential impact of US tariffs on the broader US economy.

The 50-stock index ended at 25549.00 points, up 304.25 points, or 1.2%, and the BSE Sensex closed at 83755.87, up 1000.36 points or 1.2%. Barring Nifty Media, Nifty Realty, and Nifty IT, all other sectoral indices closed in the green. Nifty Bank, Nifty Private Bank, and Nifty Financial Services closed at record highs, closing over 1% each. 

Reports said US President Donald Trump is considering replacing Fed Chair Powell before the end of his term. Investors and analysts expect Powell's replacement will, most likely, have the president's dovish bias, prompting speculation that interest rates could eventually fall faster and deeper than markets are currently pricing, Bloomberg reported. The CME FedWatch tool shows the bets on the probability of an interest rate cut by the Fed in its next meeting have increased to 24.8% from 12.5% last week. Sectors that are sensitive to interest rates, such as information technology, will be in focus going ahead. Back home, the Nifty IT index closed down 0.1% with a mixed bag of constituents. 

Nifty Metal index closed 2.3% higher and was the top gainer among the sectoral indices, closing in the green for the fifth straight session. All the broader market indices closed in the green, up 0.3-0.7%, with mid- and small-cap indices ending higher for the fifth consecutive session. Despite the market ending on a high, 47% of the stocks traded on the NSE closed in the red. 

Four Nifty 50 constituents--HDFC Bank, HDFC Life Insurance Co., Bharti Airtel, and Grasim Industries--touched their all-time high levels Thursday. Kotak Institutional Equities said the balanced product and channel mix of HDFC Life will help drive its multi-year growth.

Dr. Reddy's Laboratories, which closed 1.5% lower, was the worst performer in the Nifty 50 after foreign brokerage Citi maintained a 'sell' rating on the stock and cut the target price by 5% to INR 990 on concerns about the company's outlook in the coming quarters. Citi expects the sales of the Revlimid drug will likely drag the company's earnings before interest, tax, depreciation, and amortisation, an impact that would be difficult to fully offset.

Tech Mahindra closed nearly 1% lower and was among the worst-hit Nifty 50 constituents after Citi said macroeconomic uncertainty and the negative impact of discretionary spending in the US due to reciprocal tariffs are likely to hurt the company's revenue trajectory.

KNR Constructions fell nearly 2%. On Wednesday, the company's joint venture won a coal mine project in Jharkhand worth INR 48.01 billion. The stock had spiked in the final minutes of trading on Wednesday, ending nearly 9% higher. Thursday, the stock rose as much as 6% intraday before ending lower.

Delhivery and PB Fintech closed 0.9% and 0.3% lower, respectively, after a large number of shares changed hands on the bourses. A large deal of 1.6% stake took place in Delhivery shares, though the buyers and sellers were not disclosed. A deal of 1.1% took place in PB Fintech in opening trade. Yashish Dahiya and Alok Bansal, co-founders of PB Fintech, have been planning to sell a 1.1% stake in the company.

* Of the Nifty 50 stocks, 42 rose and 8 fell

* Of the Sensex stocks, 24 rose and 6 fell

* On the NSE, 1,474 stocks rose, 1,397 fell, and 104 were unchanged

* On the BSE, 2,097 stocks rose, 1,900 fell, and 156 were unchanged

* Nifty Metal: up 2.3%; Nifty Oil & Gas: up 1.9%; Nifty Media: down 1.1%

BSE                                               NSE

Sensex: 83755.87, up 1000.36 points or 1.2%       Nifty 50: 25549.00, up 304.25 points or 1.2%0

End

Edited by Saji George Titus

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