Sensex and Nifty Stage a Strong Comeback, Driven by Foreign Investments and Blue-Chip Gains
Indian Stock Market Shows Resilience: Sensex and Nifty Bounce Back Amid Foreign Funds Inflow
On June 18, 2025, the Indian stock market exhibited remarkable resilience as benchmark indices Sensex and Nifty rebounded after a rocky start. The upswing came amid fresh inflows from foreign institutional investors (FIIs) and significant buying in major blue-chip stocks such as Reliance Industries and ICICI Bank. Despite initial declines following an active trading session, the market’s recovery signals strong investor confidence and continued growth potential.
Market Performance Overview
Despite a challenging start, the BSE Sensex, which comprises 30 of the largest publicly traded companies in India, rebounded to appreciate by 93.05 points, settling at 81,676.35. Correspondingly, the NSE Nifty index, consisting of 50 stocks, climbed higher by 42.80 points to close at 24,896.20. Later in the session, the Sensex reached an even more impressive peak, trading up by 228.13 points and settling at 81,812.04, while the Nifty surged by 82.25 points to touch 24,937.70.
Key winners of the day included:
- IndusInd Bank
- Mahindra & Mahindra
- Maruti
- Titan
- Tech Mahindra
- HCL Technologies
- Reliance Industries
- ICICI Bank
Conversely, laggards like Kotak Mahindra Bank, Power Grid, NTPC, and Adani Ports faced losses.
Driving Forces Behind the Market Surge
Investor sentiment has been buoyed by strong support from Foreign Institutional Investors, who acquired equities worth ₹1,482.77 crore on June 17, 2025. Domestic Institutional Investors also displayed confidence by purchasing shares worth ₹8,207.19 crore in the same trading session.
V.K. Vijayakumar, the Chief Investment Strategist at Geojit Investments Limited, commented, "After the Covid crash which took the Nifty to a low of 7,511 in March 2020, we are in a bull market that has been climbing all walls of worries. The market is likely to overcome the Israel-Iran conflict concerns as well. Despite high valuations, particularly in the broader market, it is expected to remain resilient thanks to strong liquidity and hopes of a turnaround in earnings."
Global Market Context
While the Indian stock market showed encouraging signs, global markets displayed mixed performance. In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index were trading positively, showing resilience amid global fluctuations. However, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng recorded lower figures.
U.S. markets, on the other hand, ended lower, raising some caution among investors. Importantly, global oil benchmark Brent crude recorded a slight increase of 0.44%, reaching $76.79 a barrel, further influencing market dynamics.
Market Trends to Watch
As the Indian stock market navigates through this complex landscape, several trends are worth monitoring:
- Foreign Investment Flows: Sustained inflows from FIIs may have a significant impact on market sentiment and stability.
- Earnings Reports: Analysts will be closely watching upcoming quarterly earnings reports, as expectations for a turnaround could further fuel the market rally.
- Geopolitical Factors: Events, particularly those concerning global oil prices and geopolitical tensions, will continue to influence market performance.
- Valuation Watch: Given the high valuations in the broader market, investors might want to watch for signs of volatility as corrections typically follow periods of significant growth.
In summary, June 18, 2025, proved to be a notable day for the Indian stock market as indices rebounded from a weak start, reinforcing the belief in India’s economic recovery and growth trajectory. As investors monitor trends and geopolitical factors, maintaining a keen eye on both domestic and international developments will be crucial for sustaining this upward momentum. The markets remain optimistic, and as history often teaches us, robust investor sentiment and liquidity can take the market to new heights irrespective of the surrounding challenges.
