Sensex today rises 300 points, extends rally to 4th day; Nifty above 25,600; OMCs outperform

Stock market today: Indian equities ended higher for the fourth straight day on Friday, June 27, largely led by select heavyweights including Reliance Industries, ICICI Bank, and Bharti Airtel, which pushed the frontline indices another step closer to their September peaks.

A strong handover from Wall Street, coupled with a rebound in overseas inflows, helped the Nifty 50 to stay higher during Friday's session, gaining 86.35 points, or 0.34%, to finish the session at 25,635, while the Sensex rose 303 points, or 0.36%, to settle at 84,058.

Both indices concluded the week with solid gains of over 2% each, as easing tensions in the Middle East helped shrug off concerns about a potential global economic impact and triggered a sharp decline in crude oil prices, bringing renewed optimism to Dalal Street.

Meanwhile, the broader markets have also ended the week with healthy gains despite valuation concerns, with Nifty Midcap 100 and Nifty Small Cap 100 closing with 2.44% and 4.35%, respectively.

As the 90-day reciprocal tariff suspension announced by U.S. President Donald Trump in April nears its end, market attention has turned to whether the deadline will be extended. Trump had suspended certain tariffs for 90 days, and that window expires on July 9.

Separately, the European Union faces a July 9 deadline to finalize a trade deal before the U.S. imposes 50% duties on imports from the bloc. However, White House Press Secretary Karoline Leavitt downplayed the urgency of the deadline, saying on Thursday that the cutoff dates are "not critical," according to a CNBC report. "Perhaps it could be extended, but that's a decision for the president to make," Leavitt was quoted as saying.

Meanwhile, other media reports indicate that New Delhi and Washington are still negotiating a mini trade deal as part of a scaled-down Bilateral Trade Agreement (BTA), which is likely to be finalized by September.

Amid hopes of an extension to the tariff suspension, expectations have also grown that the U.S. economy could see an acceleration in interest rate cuts. This follows speculation that President Trump is contemplating naming a replacement for Federal Reserve Chair Jerome Powell as early as September or October, well ahead of the typical three- to four-month transition period.

Sectoral Performance: OMCs top gainers; realty sees profit booking

A sharp fall in crude oil prices continued to support shares of oil marketing companies (OMCs), with the positive momentum extending into Friday's trading session, prompting the Nifty Oil & Gas index to close 1.2% higher, making it the top sectoral performer of the day.

Pharma stocks also ended higher on hopes of extension to the tariff suspension, with the Nifty Pharma index gaining 0.55%. Meanwhile, PSU and metal stocks continued their winning streak, with the Nifty PSU Bank index rising 0.47%, and the Nifty Metal index adding 0.35%.

On the flip side, the real estate sector witnessed another round of profit booking, dragging the Nifty Realty index down by 1.55%. IT stocks, which had seen a strong rally earlier, also came under pressure, causing the Nifty IT index to decline by 0.44%.

Nifty is likely to continue its upward trajectory but may take time to reach 25,800, says expert

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty continued to move higher as investor confidence remained strong. With no major resistance seen before 25,750–25,800, the index may continue its upward trajectory. However, the rally might not be sharp, and it could take time to reach the 25,800 mark. A buy-on-dips strategy appears more appropriate at current levels, following the sharp rise over the past few days. On the downside, support is placed at 25,500; a break below this level could lead to consolidation."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.