Sensex up 650 pts, Nifty at 25,000 as all sectors rally; India VIX eases nearly 6%

Jio Financial Services, M&M, HDFC Life, Bharti Airtel, and Power Grid Corp were the top gainers on the Nifty.

Benchmarks Nifty and Sensex extended their gains on June 20, rallying sharply in the afternoon as all 13 sectoral indices advanced in tandem. The broader market staged a strong comeback, with midcap and smallcap indices snapping a three-day losing streak and rising almost a percent each. Meanwhile, India VIX fell almost 6 percent, signalling easing investor anxiety.

At about 12:25 pm,  the Sensex was up 660.64 points or 0.81 percent at 82,022.51, and the Nifty was up 197.90 points or 0.80 percent at 24,991.15. About 2,201 shares advanced, 1,137 shares declined, and 115 shares remained unchanged.

"There is now less panic in global equity markets, as investors seem to believe the conflict will be short-lived and unlikely to derail the global economy—especially with the US government indicating ‘substantial chances of negotiation’,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Despite elevated valuations, particularly in the broader market, strong liquidity and optimism around an earnings revival are expected to keep the market resilient,” he added.

NSE sectoral indices traded firmly in the green, with broad-based buying across the board. Nifty Realty led the gains with a 1.86 percent jump, followed closely by Nifty PSU Bank, up 1.81 percent. Nifty Metal, Infra, Energy, and Midcap 100 indices also posted strong gains, rising between 1.12 and 1.34 percent. The Nifty Bank index climbed 1.05 percent, while Auto, Private Bank, and Oil & Gas indices gained between 0.70 and 0.95 percent. Consumer Durables, IT, FMCG, Pharma, and Media indices logged more modest advances. Meanwhile, India VIX dropped sharply by 5.47 percent to 13.48, signalling easing market volatility.

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Shares of Delhivery dropped 3 percent after global brokerage Jefferies downgraded the stock to “underperform” from “buy,” while slashing the target price to Rs 315 from Rs 500. This implies a potential downside of 8 percent from current market levels. While Delhivery’s stock has traded mostly sideways over the past six months, it has climbed nearly 40 percent from April lows.

Bajaj Auto and Hero MotoCorp fell over 2 percent each after a sharp plunge in China’s rare earth magnet exports raised fresh concerns over supply disruptions. Outbound shipments of rare earth permanent magnets stood at just 1,238 metric tons last month, down nearly 53 percent from April and marking the weakest monthly figure since February 2020.

Sun TV shares crashed 4 percent after a feud erupted between the Maran brothers over the shareholding of the media network. Moneycontrol reported that the former Union Minister and DMK MP Dayanidhi Maran sent a legal notice to his brother Kalanithi Maran. The notice alleges that Kalanithi, chairman of the Chennai-based media conglomerate and Dayanidhi’s billionaire brother, engaged in what it describes as “fraudulent".

For Nifty, 23,720-24,700 is identified as a critical support zone. A breach of this level may lead to an escalation in selling activity towards the 24,600-24,500 zone in the near term. Conversely, 24,900-25,000 represents a significant resistance point, and until a decisive breakout occurs above this level, it is advisable to maintain a cautious position in elevated areas," Sameet Chavan of Angel One said. "Considering the current market conditions, it is advisable to exercise caution and refrain from adopting aggressive trades," he added.

Jio Financial Services, M&M, HDFC Life, Bharti Airtel, and Power Grid Corp were the top gainers on the Nifty. Laggards on the index included Bajaj Auto, Hero MotoCorp, Maruti Suzuki, Dr Reddy's, and Infosys.