Sensex, Nifty at 9 month highs as market rally enters Day 4: Key factors driving the surge

Indian equity markets extended their winning streak for the fourth straight session on Friday, with benchmark indices scaling nine-month highs. The BSE Sensex pack climbed 303 points or 0.36 per cent to close at 84,059, while the broader NSE Nifty gained 89 points or 0.35 per cent, ending the day at 25,638. Broader markets also participated in the uptrend. The BSE MidCap index rose 0.27 per cent, and the SmallCap index outperformed with a gain of 0.91 per cent.

Investor wealth, measured by BSE market capitalisation (m-cap), surged by Rs 2.61 lakh crore during the session, rising to Rs 460.14 lakh crore from Rs 457.52 lakh crore. Over the past four sessions, investor wealth has increased by a substantial Rs 12.26 lakh crore.

Key drivers behind the rally:

* The recent uptrend is largely attributed to easing concerns around the Iran-Israel conflict. A ceasefire has calmed global markets, and with no significant supply disruptions, crude oil prices have plunged — heading for their steepest weekly decline since March 2023. The cooling in oil prices has eased inflationary concerns, providing relief to equity markets.

* A weakening US dollar has also bolstered foreign inflows. The dollar index slipped to around 97, enhancing the appeal of emerging markets like India for foreign institutional investors (FIIs), whose buying during the previous session has helped lift domestic indices.

“Despite geopolitical hurdles like wars and tariff threats, the bull market has climbed the wall of worry,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

According to Amol Athawale, VP (Technical Research) at Kotak Securities, the Nifty50 gained 2 per cent this week while Sensex advanced 1,650 points. Sectorally, capital goods and metals led the charge with gains exceeding 5 per cent. However, profit booking was seen in the realty and defence segments.

Nifty technical outlook:

Rupak De, Senior Technical Analyst at LKP Securities, noted that Nifty shows strong momentum with no major resistance before 25,750–25,800. “A buy-on-dips strategy may be more effective now,” he said, adding that support is seen at 25,500, below which consolidation may set in.

Markets now await global cues, including the upcoming July 9 US tariff deadline.