India’s benchmark jumped 230 points on Monday, driven by a strong mix of positive triggers, and briefly crossed the 25,000 mark for the fifth time in eight sessions. However, the bulls have struggled to sustain momentum, with the index managing to close above this key level on only two occasions in 2025. Can they reclaim momentum and sustain above this key level? Here’s what you need to know.
The Nifty bulls extended their Friday rally into Monday, pushing the index past the 25,000 mark, driven by a mix of supportive global and domestic triggers.
On the global front, sentiment improved after U.S. President Donald Trump postponed the 50% tariff deadline on the European Union to July 9 from the earlier date of June 1.
Domestically, the rupee strengthened past the 85-per-dollar level for the first time in two weeks, building on Friday’s 0.9% gain. This move was fueled by the Reserve Bank of India’s record-breaking Rs 2.69 lakh crore dividend payout to the central government for FY25—a 27% increase over last year’s Rs 2.11 lakh crore.
With the June Monetary Policy Committee (MPC) meeting around the corner, the dividend boost is being seen as a positive catalyst for Indian equity markets.
“This, in turn, can sustain the low inflation and declining interest rate trend, which will continue to support the equity market,” said V.K. Vijayakumar, Chief Investment Strategist at .
While Monday’s early gains were led by banking and financial stocks, it was the auto and IT sectors that carried the rally forward. The Nifty Auto index climbed over 1%, with 13 of its 15 constituents in the green, some rising as much as 3%. The Nifty IT index also gained 1%, with all 10 stocks trading positively.
Vijayakumar also pointed to the relative outperformance of midcap stocks, driven by strong Q4 earnings, calling it a “significant feature” that has helped moderate the segment’s steep valuations.
Can Nifty sustain 25,000?
Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking, does not see strong indicators in the near term to help Nifty hold on to the 25,000 mark. Citing the derivatives data, he said that there is a strong presence of Call writers around this level which are restricting investors from short covering. In his view, Nifty has to decisively break the 25,000 mark to move towards the next target of 25,200.