Why the Share Market Is Rising on June 20, 2025: Sensex Soars 900 Pts, Nifty Crosses 25,000

On June 20, 2025, Indian stock markets saw a sharp rebound after 3 days of losses. The Sensex surged 900 points, crossing 82,200, and the Nifty went above 25,000. Gains in Banking, Financial Services, Auto, and Metal sectors fueled the rally.

The Nifty Midcap and Smallcap indices also bounced back, rising nearly 0.8%, after falling sharply on Thursday.

The total market capitalisation on BSE rose by ₹3.57 lakh crore, reaching ₹446.37 lakh crore.

RBI Eases Lending Rules for Big Projects

The Reserve Bank of India (RBI) released final rules for project financing. It reduced provisioning requirements for under-construction infrastructure and real estate projects.

Instead of the earlier proposed 5%, the RBI now requires only 1.0% to 1.25% provisioning. This move lowers funding costs and is a major relief for lenders like REC and PFC.

US Fed Hints at Two Rate Cuts in 2025

The US Federal Reserve decided to keep interest rates steady but reaffirmed its plan for two rate cuts in 2025. Although inflation is expected to rise and GDP growth may slow next year, the Fed’s signal of a more relaxed monetary policy in the coming months was welcomed by global markets and brought some comfort to equity investors.

Weakening Dollar Supports Emerging Markets

The US dollar index dropped to 98.57, continuing its recent slide. A weaker dollar helps emerging markets like India by attracting foreign investments and supporting the rupee.

Bond yields remained steady, with the 10-year US Treasury yield at 4.389% and the 2-year yield slipping slightly to 3.925%.

FIIs and DIIs Boost Market with Heavy Buying

Foreign institutional investors (FIIs) became net buyers again, pumping in ₹1,824 crore over the past two sessions. Meanwhile, domestic institutional investors (DIIs) have continued buying for 12 straight days, investing ₹2,566 crore, offering strong support to the rally.

Read More: Adani Power Shares in Focus as NCLT Approves ₹4,000 Crore Acquisition of Vidarbha Industries Power.

Crude Oil Slumps Over 2%, Easing Pressure on Indian Markets

Crude oil prices dropped sharply, with Brent falling over 2%, which helped lift sentiment in the Indian stock market. This decline came despite growing tensions between Israel and Iran. 

On June 19, White House Press Secretary Karoline Leavitt stated that President Donald Trump will decide on the US stance within two weeks. 

Conclusion

The sharp market rally on June 20 was powered by a mix of global and domestic tailwinds. RBI's relaxed norms gave a boost to banks and project lenders, while global optimism around US rate cuts and renewed FII interest provided momentum. With the Nifty hitting the 25,000 mark and the Sensex soaring, investors have regained confidence—but global cues and geopolitical risks still need close monitoring.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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