Markets Rebound Sharply: Sensex Jumps 1,650 Points, Nifty Surges 525 Points in the Week Ending 27 June 2025
Markets Recover on Ceasefire Hopes, Strong FII Inflows, and Robust Economic Data; Small-Cap and Mid-Cap Indices Outperform
Indian equity benchmarks staged a strong recovery this week, closing higher in four out of five sessions. Investor sentiment was initially shaken by U.S. airstrikes on Iranian nuclear sites, which led to a sharp decline on Monday. However, markets rebounded from Tuesday onward, supported by easing geopolitical tensions, a tentative ceasefire between Iran and Israel, strong FII buying, and positive economic data. The launch of several SME and mainboard IPOs also boosted market liquidity and participation.
The S&P BSE Sensex rose 1,650.73 points or 2 per cent to settle at Rs 84,058.90, while the Nifty 50 surged 525.40 points or 2.09 per cent to end at Rs 25,637.80. The BSE Mid-Cap index climbed 2.33 per cent to Rs 46,541.25 and the BSE Small-Cap index gained 3.57 per cent to Rs 54,249.40, reflecting broad-based gains across segments.
The week began with weakness on Monday, as the Sensex fell 511.38 points and the Nifty dropped 140.05 points. However, on Tuesday, indices posted modest gains. A major rally followed on Wednesday, with the Sensex and Nifty gaining 700.40 and 200.40 points, respectively, driven by strength in IT and consumer durable stocks. Thursday’s session saw a further boost due to F&O expiry and de-escalation hopes, with both indices rising over 1 per cent. Friday marked the fourth straight day of gains, aided by strong global cues and foreign inflows.
On the economic front, the HSBC Flash India Composite Output Index rose to 61.0 in June from 59.3 in May, the highest in 14 months. Manufacturing led the growth, with PMI Output hitting 61.5 and the overall Manufacturing PMI at 58.4. The Services PMI also rose to 60.7 from 58.8.
Several stocks were in focus this week. Nestle India rose 3.99 per cent after announcing a 1:1 bonus issue. Adani Enterprises gained 8.13 per cent after its JV AdaniConneX acquired 100 per cent stake in Granthik Realtors. Zee Entertainment soared 8.49 per cent following a strategic update. Reliance Infrastructure surged 10.75 per cent on securing an export order worth Rs 600 crore. Ask Automotive jumped 11.67 per cent after forming a joint venture with T.D. Holding GmbH. KNR Constructions rallied 5.79 per cent on receiving a Rs 4,800.57 crore coal mining project. Ahluwalia Contracts advanced 9.35 per cent after bagging new orders worth Rs 1,103.56 crore.
Global markets presented a mixed picture. Japan’s manufacturing PMI returned to expansion at 50.4, while Tokyo’s inflation data showed easing price pressures. In contrast, China’s industrial profits dropped 9.1 per cent in the first five months of 2025. The U.S. GDP contracted by 0.5 per cent in Q1, the first decline since 2022, though weekly jobless claims dropped by 10,000.
Disclaimer: The article is for informational purposes only and not investment advice.