The week of June 17 to 21, 2025, proved to be a period of significant volatility and eventual resilience for the Indian stock market. Benchmark indices, the Sensex and Nifty 50, navigated a complex landscape of escalating geopolitical tensions and cautious global central bank stances, ultimately closing the week with notable gains. Initial downturns were met with strong domestic buying, highlighting the underlying strength of the Indian economy and investor confidence.
Table of Contents
- Key Market Indices Performance
- Sector-wise Performance
- Top Stock Market News of the Week
- FII and DII Activity – Institutional Flows
- IPOs, Listings, and Market Buzz
- Top Gainers and Losers of the Week
- Key Events and Market Predictions for Next Week
- Final Takeaway – Stock Market Summary and Outlook
The week of June 17-21, 2025, saw Indian stock market indices start on a weak note but reverse course sharply toward the end.
- Sensex: Declined early, then surged 1.29% on June 21 to close at 82,408.17. The index added around 0.8% for the week.
- Nifty: Followed a similar path, ending at 25,112.40 on June 21 with a 1.29% daily jump, forming a bullish long candle pattern.
The week presented a dynamic picture for different sectors in the Indian stock market.
- Top Performing Sectors (Early Week):
- On Tuesday, June 18, the Information Technology (IT) sector distinguished itself as the sole gainer, advancing by 1%, bolstered by strong performances from Tech Mahindra, Infosys, TCS, and HCL Tech, suggesting a reallocation of capital towards perceived stability.
- Underperforming Sectors (Early Week):
- The Nifty Pharma index emerged as the top laggard, experiencing a notable decline of 1.89%.
- The Nifty Metal index also faced significant losses, falling by 1.43%.
- A wide array of other sectors, including Consumer Durables, Oil & Gas, Realty, Auto, Energy, Banking, Fast-Moving Consumer Goods (FMCG), and Media, all recorded declines of up to 1%, with auto and metal industries among the worst affected.
- Broad-Based Recovery (End of Week):
- The market's recovery on Friday, June 21, was broad-based, with all sectoral indices closing in positive territory.
- Realty, banking, financial services, and metal sectors emerged as the top performers. Nifty Realty surged by around 2%, driven by front-runners such as Lodha (Macrotech Developers), Phoenix Ltd, Godrej Properties, and Oberoi Realty.
- The Nifty Midcap 100 Index also saw a rise of 1.46%, and the Nifty Smallcap 100 Index gained 1.01%, indicating a comprehensive market recovery.
The shift in sectoral leadership from defensive IT stocks early in the week to cyclical sectors like banking, financial services, and real estate by the week's end points to renewed confidence in India's domestic growth prospects, likely bolstered by the RBI's recent interest rate reduction.
Several key events, both domestic and global, significantly influenced the Indian stock market's trajectory during the week.
- Escalating Geopolitical Tensions: The ongoing conflict between Israel and Iran remained a dominant global concern, contributing to a "risk-off" sentiment across financial markets.
- Crude Oil Price Volatility: Directly linked to the Middle East tensions, crude oil prices initially surged (Brent crude to $73.62/barrel) due to supply disruption concerns, posing an inflationary risk for India. However, later in the week, hopes that the conflict might remain contained helped ease prices (Brent crude dropped to $73.23/barrel).
- US Federal Reserve's Stance: The US Federal Open Market Committee (FOMC) meeting, held on June 17-18, kept its key interest rate unchanged, awaiting further information. Policymakers signalled expectations for two rate cuts later in the year but projected higher inflation (potentially 3%) due to import duties and a slowdown in GDP growth (1.4% for 2025). This cautious outlook raised concerns about "stagflation."
- RBI's Recent Repo Rate Cut: While the Reserve Bank of India's (RBI) decision occurred on June 7, its impact continued to shape market sentiment. The RBI reduced the repo rate by 50 basis points to 5.5%, aimed at stimulating credit growth and boosting key sectors like real estate and automotive.
- Domestic Economic Data: India's headline Consumer Price Index (CPI) inflation eased to 2.82% year-on-year in May 2025, driven by lower food prices. Wholesale Price Index (WPI) inflation also showed signs of easing to 0.39%. These favourable headline numbers provided the RBI with room for accommodative policy. However, core inflation remained above 4% for four consecutive months, a lingering concern signalling strengthening domestic demand.
The activity of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) provided crucial insights into market sentiment.
- Initial FII Outflows & DII Support: The week began with significant net outflows from FIIs (₹8,080 crore offloaded by June 17), but Domestic Institutional Investors (DIIs) provided robust counter-support with consistent net inflows, acting as a crucial buffer.
- FII Turnaround: FII sentiment shifted dramatically by mid-week, culminating in substantial net equity inflows of ₹7,940.70 crore on Friday, June 21, reversing earlier selling pressure.
- DII Profit Booking: DIIs recorded net outflows of ₹3,049.88 crore on Friday, suggesting some profit booking after the sharp market rally.
- Market Impact: The strong DII support initially prevented a steeper decline, while the subsequent FII re-entry fueled the market's sharp rally, indicating foreign investors viewed earlier dips as buying opportunities.
The primary market remained active, with several significant public offerings and listings.
- Recent IPOs/Listings (June 2025):
- Oswal Pumps IPO: Closed on June 17, garnering a robust 34.42 times overall subscription. Its shares listed on June 20, making a muted yet positive debut with a 3% gain over its issue price of ₹614, opening at ₹632 on BSE and ₹634 on NSE.
- Arisinfra Solutions IPO: This book-built issue closed its subscription period on June 20, receiving a moderate 2.65 times overall subscription. Allotment was expected on June 24, with shares anticipated to list on June 25, 2025. The Grey Market Premium (GMP) for Arisinfra Solutions IPO stood at ₹22 per share as of June 19, indicating an expected listing premium of approximately 9.91%.
- Upcoming IPOs in the Next Week (June 24-28, 2025):
- Ellenbarrie Industrial Gases IPO (Opens June 24)
- Globe Civil Projects IPO (Opens June 24)
- Kalpataru Ltd IPO (Opens June 24)
- HDB Financial Services IPO (Significant offering, anticipated to open June 25)
- Sambhv Steel Tubes IPO (Expected to open June 25)
- Other Market Buzz (Corporate Actions):
- NTPC: Board to consider raising up to ₹18,000 crore via bond issuance on June 21, 2025.
- Biocon: Launched a Qualified Institutional Placement (QIP) to raise ₹4,500 crore at a floor price of ₹340.20 per share.
- ZEE: Board approved issuing up to 16.95 crore fully convertible warrants to promoter group entities to raise an estimated ₹2,237.44 crore.
- Tanla Platforms: Board cleared a share buyback plan of up to ₹175 crore.
- Reliance Industries: Executed a major block deal involving the sale of 8.5 million Asian Paints shares to ICICI Prudential Mutual Fund.
The robust activity in the primary market indicates that investor appetite for new issues remains strong, reflecting an underlying confidence in India's long-term growth narrative.
The Indian stock market's robust rebound on Friday, June 21, saw a diverse set of companies emerge as top performers, while others experienced declines.
Top Gainers (on Friday, June 21):
Here's a look at the top gainers and losers from the Indian stock market this week, along with reasons for their performance and their closing prices on Friday, June 21, 2025:
- BEML Ltd.: To close at ₹4,639.50, surging on increased government spending on infrastructure and defence, alongside specific new order wins for railway projects.
- Endurance Technologies Ltd.: To close at ₹2,563.45, reflecting renewed optimism in the automotive sector, likely boosted by the recent RBI repo rate cut stimulating demand.
- Mishra Dhatu Nigam Ltd. (MIDHANI): To close at ₹443.60, driven by strong demand from strategic sectors like defence and aerospace, and ongoing defense-related orders.
- Power Finance Corporation Ltd. (PFC): To close at ₹519.80, benefiting from overall positive sentiment in the financial sector and expectations of increased infrastructure spending in the power domain.
- Bharti Airtel Ltd.: To close at ₹1,475.95, likely driven by continued subscriber growth, potential tariff hikes, or a generally positive outlook for the resilient telecom sector.
Top Losers (on Friday, June 21):
- AstraZeneca Pharma India Ltd.: To close at ₹8,883.00, likely due to a broader sectoral weakness observed in the pharma index earlier in the week or company-specific news.
- AB Cotspin India Ltd.: To close at ₹37.95, influenced by fluctuations in commodity prices or concerns regarding demand within the textile sector.
- Linde India Ltd.: To close at ₹7,925.60, possibly attributed to profit booking after recent gains or a general market sentiment affecting industrial stocks.
- Redington Ltd.: To close at ₹212.10, potentially linked to sector-specific headwinds or general market corrections after previous rallies.
- Asahi India Glass Ltd.: To close at ₹635.85, likely reflecting lingering weakness in the auto sector or specific company-related developments.
The broad participation in the market's recovery signifies a healthy and widespread rally. Conversely, the list of top losers suggests continued sectoral rotation, where some defensive sectors saw profit booking as capital shifted towards more cyclical growth-oriented sectors.
As we head into the next week, several key events and economic data releases will be crucial for investors to monitor for insights into future market trends.
- Upcoming Economic Data: Investors will be keenly watching any fresh government or RBI announcements related to inflation, industrial production, or other macroeconomic indicators that could provide further cues on the Indian economy's health.
- RBI MPC Minutes: The minutes of the latest RBI Monetary Policy Committee meeting, published on Friday, June 21, 2025, will provide further clarity on the central bank's outlook and deliberations. The full impact of these minutes will be observed in the coming week.
- Upcoming IPOs: The primary market will remain vibrant with several new IPOs scheduled to open, including Ellenbarrie Industrial Gases, Globe Civil Projects, Kalpataru Ltd, HDB Financial Services, and Sambhv Steel Tubes, providing fresh investment opportunities.
- Market Levels to Watch: Investors will continue to monitor key support and resistance levels for the Nifty and Sensex to gauge market direction. The Nifty's decisive break above 25,000 on Friday will be crucial to sustain.
- Corporate Actions: The coming week will also be busy with various corporate actions announced by companies.
The past week in the Indian stock market was characterised by:
- Volatility and Resilience: Initial declines due to global tensions were met with a strong domestic rebound, demonstrating the market's underlying resilience.
- Domestic Strength: Robust DII flows acted as a crucial buffer against initial FII selling, highlighting the growing influence of domestic capital.
- FII Re-entry: Foreign Institutional Investors turned net buyers by the week's end, injecting optimism and signalling renewed interest in Indian equities.
- Sectoral Rotation: An early-week preference for defensive IT stocks shifted to a broad-based recovery led by cyclical sectors like realty and banking, indicating confidence in India's growth narrative.
- Active Primary Market: The IPO segment remained vibrant, with strong subscriptions and upcoming offerings, reflecting sustained investor interest in fresh opportunities.
- Nuanced Economic Picture: While headline inflation eased and the RBI cut rates, persistent core inflation and global economic uncertainties (US Fed's cautious stance, crude oil volatility) suggest a more measured approach to further easing.
Investors are encouraged to remain informed about both domestic and global cues and maintain a selective approach. The current market environment calls for careful stock picking and adherence to a well-diversified portfolio strategy, capitalising on India's unique position of domestic strength amidst global uncertainties.