Indian Stock Market Rallies for Third Day Amid Global and Domestic Optimism

The Indian stock market continued its upward momentum on Thursday, June 26, rising for the third straight session. Easing tensions in the Middle East, falling crude oil prices, and a weaker US Dollar helped boost investor confidence.

Market Highlights

The Nifty 50 climbed 285 points, or 1.10%, to close at a 9-month high of 25,529. The Sensex also surged by 808 points, or 1%, ending at 83,689 — a level last seen in October 2024. Both benchmarks are now just 2.5% below their record highs from September 2024.

This rally reflects improved risk sentiment among global and domestic investors, who are hopeful about better earnings and strong inflows.

Global Relief: Middle East Ceasefire

One of the key drivers of this rally is the ceasefire between Israel and Iran. The two countries have observed peace for the second consecutive day after a 12-day conflict. The war began on June 13 with Israel's airstrike, followed by Iran’s heavy missile response.

U.S. President Donald Trump’s announcement of a ceasefire has brought some relief to global markets. He also said that American and Iranian officials would meet next week, raising hopes for longer-term peace.

Weaker Dollar Boosts Emerging Markets

The US Dollar Index dropped to a three-year low of 97, after Trump publicly criticized Federal Reserve Chair Jerome Powell and pushed for lower interest rates. A weak dollar often leads to more foreign investment in countries like India.

Although Powell remained cautious in his testimony, poor consumer confidence data has increased chances of a U.S. rate cut. Investors are watching upcoming GDP and inflation data closely.

Read more: RIL Share Price Climbs as Market Cap Crosses ₹20 Trillion Again

Conclusion

The Indian stock market’s recent gains are being powered by a mix of global relief, local optimism, and falling oil prices. As tensions ease and the dollar weakens, foreign investment may rise. Meanwhile, continued support from domestic investors and hopes for strong corporate earnings are likely to keep market sentiment positive in the near term.

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