Geopolitics on hold, bulls in control: Nifty reclaims 25K

Bulls stormed Dalal Street on Friday, pushing the Nifty 50 index past 25,000, snapping a three-day losing streak. The rally gained momentum in the final hour as Middle East tensions showed signs of cooling and foreign investors returned to Indian equities.

Sentiment improved after reports suggested a potential de-escalation in the Iran-Israel conflict, with the White House indicating that US President Donald Trump would take at least two weeks to decide on any involvement, leaving room for diplomatic engagement. This helped cool Brent crude prices, easing concerns over India?s energy import costs and giving a further boost to equities.

Short covering ahead of next week?s monthly F&O expiry added to the surge. All NSE sectoral indices ended in the green, led by gains in realty and PSU bank stocks.

The S&P BSE Sensex jumped 1,046.30 points or 1.29% to 82,408.17. The Nifty 50 index jumped 319.15 points or 1.29% to 25,112.40. The Sensex and the Nifty fell 0.53% and 0.61%, respectively, in the past three sessions.

Reliance Industries (up 2.16%), HDFC Bank (up 1.60%) and ICICI Bank (up 1.13%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 1.20% and the S&P BSE Small-Cap index added 0.55%.

The market breadth was strong. On the BSE, 2,463 shares rose and 1,484 shares fell. A total of 147 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 4.08% to 13.67.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.02% to 6.311 from the previous close of 6.312.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.6150 compared with its close of 86.7350 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.56% to Rs 98,774.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.19% to 98.60.

The United States 10-year bond yield rose 0.25% to 4.407.

In the commodities market, Brent crude for August 2025 settlement rose 56 cents or 0.73% to $77.26 a barrel.

Global Markets:

European indices advanced on Friday, despite a sharp decline in U.K. retail spending. According to the Office for National Statistics, retail sales in the U.K. fell by 2.7% in May, the steepest monthly drop since December 2023, as shoppers pulled back on spending.

In addition to releasing retail sales data, the Office for National Statistics also reported that public borrowing in May reached 17.7 billion pounds ($23.8 billion), which is 700 million pounds higher than the same period last year.

Most Asian shares ended lower as investors assessed China data and monitored tensions between Israel and Iran.

U.S. President Donald Trump is now weighing in on whether to back the Israeli military and strike Tehran. The White House said that he will make a final decision within the next two weeks.

Japan's core consumer price index (CPI), which excludes volatile fresh food costs, rose 3.7% in May from a year earlier, data showed on Friday, accelerating from a 3.5% increase in April.

China kept its benchmark lending rates unchanged Friday. The People?s Bank of China held the 1-year loan prime rate at 3.0% and the 5-year LPR at 3.5%, according to a statement Friday.

Stocks in Spotlight:

Shares of Power Finance Corporation (PFC) (+4.92%) and REC (+2.96%) rallied after the Reserve Bank of India (RBI) issued its final Project Finance Directions, 2025. Lenders will now set aside a standard 1% for such exposures, with a gradual increase depending on the length of DCCO deferment. In the case of under-construction commercial real estate, the initial provisioning will be slightly higher at 1.25%. For projects that have already achieved financial closure, existing provisioning rules will continue to apply, ensuring a smooth transition to the new regime.

Sun TV Network fell 1.09% after a legal notice from DMK MP and former telecom minister Dayanidhi Maran to his brother, Sun TV chairman Kalanithi Maran, reignited a decades-old family dispute over the company?s shareholding structure. The notice has been served not only to Kalanithi Maran but also to his wife, Kavery Kalanithi, and others involved in the company. Kalanithi Maran remains the majority shareholder, holding a 75% stake in the Chennai-based broadcaster. In response, Sun TV Network dismissed the allegations as incorrect, misleading, speculative, and not supported by facts or law, adding that the matter pertains to a time when the company was a privately held entity and all actions were conducted in accordance with the law.

Brahmaputra Infrastructure shares rose 1.48% after the company implemented a 15% hike in rental rates at City Centre Guwahati, in line with its lease agreement mandating such an increase every three years. The hike took effect from April 1, 2025, following the end of the second three-year term on March 31. The mall, which is operating at full capacity, currently houses over 150 reputed brands.

Uno Minda advanced 2.74% after the company?s board has approved the setting up of a greenfield manufacturing facility for aluminium die casting in Sambhaji Nagar, Maharashtra for Rs 210 crore.

Suzlon Energy rose 1.26% after the company bagged its third successive order from Ampin Energy Transition (AMPIN) for the development of a 170.1 MW wind power project in Kurnool, Andhra Pradesh.

TD Power Systems shed 0.18%. The company secured an order worth Rs 67 crore from a leading multinational corporation for the supply of components for traction motors meant for export.

ITD Cementation India declined 1.33%. The company announced that it has secured two major contracts cumulatively valued at approximately Rs 960 crore.

New Listing:

Shares of Oswal Pumps were settled at Rs 624.90 on the BSE, representing a premium of 1.78% compared with the issue price of Rs 614.

The scrip was listed at 632, exhibiting a premium of 2.93% to the issue price. The stock hit a high of 649.15 and a low of 621.90. On the BSE, over 14.52 lakh shares of the company were traded.

IPO Update:

The initial public offer (IPO) of Arisinfra Solutions received bids for 3,45,71,397 shares as against 1,30,84,656 shares on offer, according to stock exchange data at 16:45 IST on Friday (20 June 2025). The issue was subscribed 2.64 times.

The issue opened for bidding on Wednesday (18 June 2025) and it will close on Friday (20 June 2025). The price band of the IPO is fixed between Rs 210 and 222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.

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