The day began with strong bullish momentum as investors cheered news of a temporary truce in the Middle East. However, conflicting reports through the afternoon about resumed missile fire between Israel and Iran, coupled with defensive posturing from both sides, cooled enthusiasm. The geopolitical backdrop tempered risk appetite, even as domestic sentiment remained broadly positive.
“A sustained move above 25,300 would open the door for a rally towards 25,500, followed by 25,800 levels. On the other hand, calming of global tensions is likely to improve investor sentiment further, potentially accelerating the uptrend. Looking ahead, the market is expected to move in a steady manner, with no sharp movements anticipated in the near term. As long as the Nifty holds above 24,500, dips should be viewed as buying opportunities,” Kunal Kamble, senior technical research analyst at Bonanza told CNBC-TV18.
The banking index saw a similar trend, with Nifty Bank ending 403 points higher at 56,462 after rising more than 800 points intraday. In contrast, the broader market held firm, with the Nifty Midcap 100 climbing 416 points to settle at 58,822. Market breadth remained robust, with the NSE advance-decline ratio at 2:1, signaling widespread gains.
Among key movers, oil marketing companies advanced as global crude prices saw a sharp drop. In contrast, upstream oil producers came under pressure. Shares of paint manufacturers and airline companies also rose on lower crude, with IndiGo gaining 3%. In the telecom sector, Vodafone Idea jumped 5% after the Telecom Minister voiced support for greater competition in the industry.
Defense stocks faced selling pressure after recent rallies. Garden Reach Shipbuilders fell 9% and Hindustan Aeronautics Ltd dropped 3% as investors booked profits. IT firm KPIT Technologies declined 6% after cautioning that its deal conversion rate is slower than expected.
In financials, SBI Cards rose 3% after gaining market share in credit card spending during May. Astec Lifesciences surged 13% after its board approved a ₹250 crore rights issue, while Bondada Engineering gained 5% on securing an ₹836 crore government order in Tamil Nadu.
Ambuja Cements climbed 4% following the announcement of new capacity expansion in West Bengal. Stocks such as JSPL and Page Industries added around 2% each after receiving favourable views from brokerage firms.
Despite a volatile session, analysts say the overall tone remains constructive, though markets may remain range-bound amid continued geopolitical uncertainty. With crude oil softening and domestic macro data in focus, traders are expected to tread cautiously in the near term.
