Bulls ride PSU Banks as Sensex, Nifty hit 2025 highs amid ceasefire news

D-Street bulls feasted on banking stocks, with public sector banks witnessing the highest buying demand in the broad rally across Indian markets, following US President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel on Tuesday, June 24.  The benchmark equity indices, BSE Sensex, and NSE Nifty50, which had corrected sharply on Monday, scaled fresh highs of 83,018 and 25,317, respectively, for 2025. Buying was seen across broader markets as well, with the Nifty Mid and Smallcap indices logging gains of over 1 per cent.   The dramatic developments in West Asia culminating in President Trump’s announcement of a ceasefire indicate that the worst of the conflict is over, said VK Vijayakumar, chief investment strategist, Geojit Investments. The sharp reactions in the crude oil and stock markets, he said, suggest that the geopolitical situation is returning to normalcy.

 

 

“Nifty, which has been stuck in the 24,500-25,000 range, will now decisively break out on the upside. But whether it will sustain at higher levels will depend on developments on the trade front. Since the pause on the reciprocal tariff ends on July 9, bilateral trade agreements must happen before that. Therefore, markets are likely to respond to developments on the trade front,” said Vijayakumar.

 

At last check, the BSE Sensex was trading higher by 1,117.07 points or 1.36 per cent at 83,013.86. The index traded in the range of 83,018.16 – 82,360.04 on Tuesday. 

 

Similarly, the NSE Nifty50 was at 25,313.55, higher by 341.65 points or 1.37 per cent. The index traded in the range of 25,317.70 -25,118.50 on Tuesday.  

 

From a technical point of view, Ravi Singh, SVP of retail research at Religare Broking, said that the Nifty50 has been trading above the 25,200 level, which was previously a strong resistance. This level, Singh believes, is now acting as new support, with the highest Put Open Interest (OI) buildup seen at the 25,000 strike.

 

Furthermore, among the Nifty50 constituents, Adani Ports, Jio Financial Services, UltraTech Cement, Tata Steel, and Adani Enterprises were leading the gains, rising by 2.70-3.67 per cent. Conversely, Oil & Natural Gas Corporation (ONGC), Bharat Electronics, NTPC, IndusInd Bank, and Trent were the only five constituent stocks of Nifty50 that traded lower, falling by up to 2.54 per cent.  Track LIVE Stock Market Updates

Market breadth turns positive

 

The market breadth turned positive as 2,126 out of 2,734 traded stocks posted advancements, while 540 declined, and 68 remained unchanged. As many as 54 stocks scaled their 52-week high during intraday trade on Tuesday, while 24 slipped to their 52-week low.  The number of stocks hitting their upper circuit limit stood at 87, while it was 42 for stocks touching their lower circuit on the NSE.

SMIDs trade higher

Among the broader market, Nifty Midcap100 and Smallcap100 indices traded higher by 1.19 per cent and 1.21 per cent, respectively. Swan Energy, HBL Engineering, Vodafone Idea, and Steel Authority of India (SAIL) were among the top gainers in the space, rising by up to 7.30 per cent.

Nifty PSU Banks index outperforms others

The Nifty PSU Bank, which reflects the performance of public sector banks, outperformed others by rising 2.42 per cent during intraday trading on Tuesday. All the 12 constituent stocks of the index were trading higher, led by Punjab & Sind Bank and Union Bank of India. Meanwhile, the Bank Nifty traded higher by 1.27 per cent, and Nifty Private Bank was up by 1.15 per cent.

 

Barring the Nifty Media index, all other sectoral indices were trading higher. Among them, the Nifty Metal index traded higher by over 2 per cent, while Nifty Auto, IT, Financial Services, and Consumer Durables indices were trading with gains of over 1 per cent each.

Nifty eyes 25,500

On the upside, levels between 25,400 and 25,500, Singh believes, may cap further gains for Nifty50 due to active Call OI buildup. Nifty50 is taking support from the 21-day EMA and looks strong for now. “If it continues to trade above 25,200, it could move toward 25,500. However, if Nifty50 closes below 25,200, it may be seen as a false breakout,” said Singh.