Broad-Based Rally Lifts Nifty, Sensex After RBI Surprise and Global Optimism

Sensex Surges, Nifty Tops 25,100 as Bulls Extend Momentum Across All Sectors

RBI’s policy surprise and strong global cues fuel broad-based rally; technical resistance seen near 25,500

Bulls Maintain Control as Markets Open Gap-Up

Domestic equity benchmarks Nifty 50 and Sensex opened with strong gains on Monday, June 9, reflecting sustained bullish momentum. The rally was driven by the Reserve Bank of India’s policy easing, alongside favorable global market cues.

• At 9:21 AM, the Sensex climbed 323.13 points or 0.39%, reaching 82,512.12.
• The Nifty 50 rose 108.55 points or 0.43%, touching a new peak of 25,111.60.

The market breadth remained firmly positive, with 2,218 stocks advancing, 634 declining, and 170 unchanged—highlighting broad-based buying interest.

Sectoral Indices and Broader Markets Rally

All sectoral indices traded in the green, signaling widespread investor confidence. Leading the pack were:

• Nifty IT, Nifty Media, and Nifty PSU Bank, showing strong early gains.
• The Nifty Smallcap and Midcap indices also posted a rise of nearly 70 basis points each, reinforcing bullish sentiment in broader markets.

Expert View: Liquidity Supports Sentiment, But Earnings Are Crucial

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the RBI’s policy measures have temporarily lifted market sentiment. However, he cautions that:

• “Earnings momentum, particularly in midcaps, will be key for sustained rally.”
• “Large- and small-cap earnings remain under pressure, limiting upside potential.”

Technical Levels and Volatility Trends

Technical analysts are watching key levels closely. Om Mehra, Research Analyst at SAMCO Securities, noted:

• Immediate resistance is seen near 25,120. A decisive breakout may lead to further gains.
• Support has shifted higher to 24,880–24,900, creating a potential buy-on-dip opportunity.

Meanwhile, India VIX—a gauge of market volatility—fell 3% to 14.63. A further decline below 13.5 would enhance market stability and bolster bullish sentiment.

Options Data Suggests Bullish Shift

Derivatives activity continues to support the bullish outlook:

• Strong put writing near at-the-money strikes indicates confidence among traders.
• Call writers are shifting to higher strikes, suggesting a change in market tone from cautious to optimistic.

According to Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities:

• The 25,500 call strike holds the highest open interest at 82.2 lakh contracts, marking a key resistance level.
• On the downside, the 25,000 put strike has seen 65.89 lakh contracts added, establishing a firm support base.

Institutional Flow: DIIs Continue to Dominate

In terms of institutional flows, Domestic Institutional Investors (DIIs) played a more aggressive role:

• FIIs recorded net purchases of ₹1,009 crore, but have remained net sellers in 2025, offloading equities worth ₹1.24 lakh crore year-to-date.
• In contrast, DIIs have provided consistent support, with net purchases nearing ₹3 lakh crore in 2025 so far.

Global Markets Offer Supportive Backdrop

Global cues remained supportive, providing a cushion for Indian markets:

• US equities closed higher on Friday after better-than-expected jobs data eased recession fears.
• The Dow Jones, S&P 500, and Nasdaq Composite gained over 1% each, while Tesla rebounded from previous losses.
• Asian markets opened higher as well, with optimism over the resumption of US-China trade talks lifting sentiment in Japan and South Korea.

Outlook: Range-Bound with Positive Bias

Despite the current bullish phase, analysts suggest Nifty may remain range-bound in the near term:

• The anticipated trading range is 24,500 to 25,500.
• While ample liquidity supports downside protection, subdued earnings growth may restrict significant upside.

“Without signs of earnings acceleration, markets may struggle to sustain upward momentum,” Vijayakumar added.