Mumbai: The Indian stock market saw a big rally on Friday, June 20. The Sensex jumped over 800 points and the Nifty 50 crossed the 25,000 mark during intraday trading. This rise made investors happy and richer, adding around Rs 3 lakh crore to overall market value.
The Sensex opened at 81,354.85 and went up to a high of 82,186.37, while the Nifty 50 opened at 24,787.65 and reached 25,040.45 at its peak. Midcap and Smallcap stocks also moved up, showing that the rally was broad-based.
So, why did the stock market rise today, even when global tensions like the Israel-Iran conflict are still going on?
Here are four main reasons:
1. Short Covering After Recent Fall
The market had been going down for the last few sessions. Many investors who had sold earlier (short sellers) started buying again to cover their positions. This added to the rise. Also, hopes of peace between Israel and Iran boosted sentiment.
2. Crude Oil Prices Fell
Brent crude oil prices dropped by more than 2% to around $77 per barrel. Lower oil prices are good news for India, which imports most of its oil. It helps control inflation and improves the government’s finances. The fall came even as the US delayed any immediate action in the Israel-Iran conflict.
3. Foreign Investors Back in Action
Foreign Portfolio Investors (FPIs) bought Indian stocks worth over ₹934 crore on June 19. A weaker dollar and strong Indian economy made Indian stocks attractive again. FPIs had been selling earlier, so their return is a good sign.
4. Positive Technical Signals
Experts say that if the Nifty stays above 25,000, the market may go up further. Traders are watching levels closely. Kotak Securities’ analyst said a move above 25,000 can lead to more gains, while a drop below 24,700 could bring weakness.
In short, even though there are global worries, the Indian stock market stayed strong. Falling oil prices, foreign buying, and chart-based signals gave investors reasons to cheer. If global tensions don’t get worse, markets could continue to rise in the coming days.
