The Indian stock market experienced a volatile trading session on Monday, June 23, 2025, with key benchmark indices, the Sensex and Nifty, concluding the day in negative territory. The market's performance was significantly influenced by escalating geopolitical tensions in the Middle East and a cautious global outlook for the technology sector. Despite these external pressures, the broader market segments displayed a degree of resilience, suggesting underlying domestic strength.
Table of Contents
- Market Snapshot: Key Indices and Movement
- Sectoral Performance Overview
- Top Gainers and Reasons
- Top Losers and Reasons
- FII & DII Activity
- IPO Highlights
- Global Markets & Geopolitical Impact
- Economic Data & Policy Developments
- Final Market Wrap Up
Indian benchmarks faced a challenging start to the trading week, reacting sharply to global developments, but demonstrated some recovery from their deepest intraday losses.
- Sensex: Closed at 81,896.79 points, down -511.38 points (-0.62%%) from its previous close. It traded at an intraday low of 81,803 points at 1:09 PM IST, representing a 0.74% decline.
- Nifty 50: Concluded the day below the psychologically important 24,971.90 mark, recording a -0.56%% drop (approx. -140.50 points) from its last close.
Wrap-up: Both benchmark indices recorded declines, driven by global uncertainties. However, the market showed resilience, with BSE Midcap index managing a modest gain of 0.26%, and the BSE Small cap Index seeing an increase of 0.39%, suggesting underlying domestic buying interest in broader segments.
The market witnessed a clear divergence in sectoral performance, directly reflecting the day's dominant themes.
Top Gaining Sectors:
- Nifty India Defence: Robust 1.94% gain, attributable to heightened geopolitical tensions.
- Nifty Media: Strong 3.52% gain.
- Nifty Metal, Nifty India Manufacturing, Nifty PSE, Nifty Realty, Nifty Pharma, and Nifty Commodities: All recorded modest gains, within 1%.
Top Losing Sectors:
- Nifty IT: Faced considerable pressure, experiencing a decline of 1.53%, due to a cautious outlook from global technology major Accenture.
- Nifty Auto: Saw a decline of 1.06%.
- Nifty FMCG: Fell by 0.52%.
Wrap-up: The day's trading highlighted a stark divergence, with defence and media-related sectors outperforming due to specific events, while IT, auto, and FMCG sectors bore the brunt of global headwinds and cautious corporate outlooks.
The day's market movements revealed a clear divergence in individual stock performance.
Wrap-up: Defence-related stocks and certain energy companies surged, directly reflecting the impact of geopolitical tensions and rising crude oil prices.
While some sectors gained, IT majors and select auto and FMCG firms faced significant selling pressure.
Wrap-up: IT sector heavyweights were severely impacted by global tech spending concerns, while select auto, pharmaceutical, and other firms also recorded declines, likely driven by profit-booking or specific individual stock dynamics.
Understanding the flow of funds from Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) is essential, though official data for June 23, 2025, is provisional and released with a time lag.
Data Availability and Provisional Information: As of June 23, 2025, the consolidated FII and DII cash segment activity for the day is provisional and generally updated after market hours or on the subsequent trading day.
Latest Provisional Data (June 20, 2025):
- Foreign Institutional Investors (FIIs): Net buyers in the cash segment, with a net purchase value of ₹7,940.70 crore.
- Domestic Institutional Investors (DIIs): Net sellers in the cash segment, with a net sale value of ₹3,049.88 crore.
Inferred Impact on June 23, 2025: Given the overall market decline driven by global risk factors, it is highly probable that FIIs were net sellers in the Indian equity market. Conversely, DIIs likely continued their pattern of providing some counter-balancing support, potentially limiting the downside for the domestic indices and contributing to the recovery from intraday lows.
Insight: The observed market decline on June 23 suggests that net FII outflows likely exerted pressure, while DIIs played a crucial role in absorbing selling pressure, highlighting the increasing maturity and resilience provided by domestic capital.
The Indian primary market remained active on June 23, 2025, with a new Initial Public Offering (IPO) opening for subscription.
- AJC Jewel Manufacturers Limited IPO: Opened for subscription on June 23, 2025, and will close on June 26, 2025. The price band is ₹90-₹95 per share, aiming to raise ₹14.59 crore. On its first day, the IPO received a "muted response," subscribed 9% by 2:30 PM IST. Despite the slow start, its unlisted shares were trading at a Grey Market Premium (GMP) of +₹9, indicating an estimated listing price of ₹104.
- Upcoming IPOs for the Week (June 23-27): A total of 6 mainboard IPOs and 12 SME IPOs are scheduled, including Kalpataru Limited (June 24-26), Ellenbarrie Industrial Gases Limited (June 24-26), Globe Civil Projects Limited (June 24-26), HDB Financial Services Limited (June 25-27), Sambhv Steel Tubes Limited (June 25-27), and Indogulf Cropsciences Limited (June 26-30).
- PayU IPO Delayed: Prosus, the parent company of Indian payments firm PayU, announced a delay in its IPO plans for 2025, opting to focus on enhancing business operations before considering a listing.
- NTPC's Fundraising Plans: The board of NTPC is seeking shareholder approval to raise up to ₹18,000 crore via non-convertible debentures (NCDs) through private placement. E-voting opens on June 24.
Wrap-up: The primary market saw a new IPO opening with a muted initial response but positive GMP, while a busy week of upcoming IPOs and significant corporate fundraising plans signal continued activity in the capital markets.
Several key events, both domestic and international, significantly influenced the trajectory of the Indian stock market.
- Escalating Middle East Tensions and Oil Price Spike: The United States executed strikes against Iranian nuclear facilities in support of Israel. Iran responded with warnings of "dire consequences," including potential disruption of flows through the critical Strait of Hormuz. This immediately triggered a sharp increase in Brent crude futures, which surged over 2%, briefly surpassing $81 a barrel, before moderating to trade around $76.74-$79.20. Higher oil costs raise significant concerns for India, a major net importer.
- Accenture's Cautious Outlook and its Ripple Effect on IT Stocks: Global technology services giant Accenture reported a decline in outsourcing orders for the third consecutive quarter, signaling deeper concerns regarding margins and future demand within the global technology sector. This had a direct and negative spillover effect on Indian IT majors like Infosys, TCS, and HCL Technologies.
- GAIL's Project Delay and Cost Hike: GAIL (India) Ltd announced approval for a ₹411 crore cost hike and delays for its MNJPL pipeline project, pushing its completion to September. GAIL's stock ultimately traded in the red, closing down by 0.05%.
Wrap-up: Geopolitical tensions in the Middle East and a cautious outlook from a prominent global IT firm were the primary factors driving market sentiment, underscoring the profound interconnectedness of global industries and India's vulnerability to international shocks.
Beyond the immediate headlines, a confluence of economic data and global factors continued to exert influence on the Indian stock market.
- Reserve Bank of India (RBI) Decisions: The RBI's Monetary Policy Committee (MPC) recently undertook a significant monetary easing cycle, including a substantial 50 bps rate cut on June 6, 2025, bringing the repo rate down to 5.50%. The Cash Reserve Ratio (CRR) was also reduced by 100 bps to 3.00%. Crucially, the RBI also shifted its monetary policy stance from "Accommodative" back to "Neutral", signaling a potential pause in the rate cut cycle.
- Inflation Numbers: India's inflation rate stood at 2.82% in May 2025, with reports indicating inflation easing to a six-year low of 3.16%, providing the RBI room for rate cuts.
- Crude Oil Updates: Brent crude oil settled around $76.74 a barrel, with spikes following US strikes on Iran, driven by fears of supply disruptions from the Middle East. Higher crude oil prices are a significant inflationary concern for India.
- US Federal Reserve News: The US Federal Reserve indicated on June 18, 2025, that it may cut interest rates twice in 2025, though this remained "far from certain." This cautious tone from the US Fed dampened hopes of fresh liquidity from foreign investors.
- Global Geopolitical Factors: Beyond the immediate Israel-Iran conflict, broader global trade wars and ongoing conflicts continue to disrupt supply chains and alter trade alliances, contributing to vulnerability for India's exports.
- India's Business Activity (PMI Data): Despite the market's negative performance on June 23rd, India's private sector activity surged in June, reaching a 14-month high. The HSBC Flash India Composite PMI rose to 61.0 from May's 59.3, driven by strong domestic and international demand, record export growth, and robust hiring.
Wrap-up: The market's negative performance on June 23rd, despite exceptionally strong domestic economic indicators, highlights that while India's internal fundamentals remain robust, global geopolitical events and international monetary policy signals are currently dominating the market narrative and investor sentiment.
The Indian stock market faced a volatile day on June 23, 2025, closing in the red as geopolitical tensions in the Middle East and a cautious global IT sector outlook weighed heavily on investor sentiment. While benchmark indices like the Sensex and Nifty declined, they did recover some intraday losses, and the broader mid and small-cap markets showed resilience.
This divergence highlighted a curious split between robust domestic economic indicators, such as strong PMI figures, and the immediate impact of external shocks. Foreign Institutional Investors (FIIs) likely contributed to the selling pressure, but Domestic Institutional Investors (DIIs) provided crucial support, cushioning the market's fall. Looking forward, continued monitoring of global events, oil prices, and economic data will be key for market direction.