Indian stock market: Sensex, Nifty 50 rise for fourth straight month as financials, tech lead; gain 17% from April lows
Indian stock market today: The Indian stock market ended the last trading session of June in the red, as investors booked profits following the strong rally seen over the previous four sessions. Nevertheless, the market closed the month in the green for a fourth consecutive time, with the Nifty 50 ending up 3.10% and the Sensex rising 2.65%, pushing the four-month cumulative gains for both indices to over 15%.
Impressively, both indices have recovered nearly 17.3% from their April lows, which is the best turnaround performance in the recent past.
June can be broadly divided into two distinct halves. The first half was dominated by bears, dragging frontline indices to one-month lows. However, the momentum shifted in the second half, as positive global cues and the return of foreign portfolio investors (FPIs), joining robust domestic inflows, helped markets recover and reverse early losses.
Easing tensions in the Middle East, which also triggered a sharp fall in crude oil prices, combined with the US dollar index dropping to a three-year low, has prompted overseas investors to shift their focus back to Indian equities.
On Thursday, foreign investors pumped ₹12,594 crore into the Indian stock market, the same day when the US dollar plummeted to the lowest level since February 2022. On Friday, they continued to remain net buyers, infusing another ₹1,400 crore.
This shift in sentiment has turned them into net buyers for the month of June, with total inflows so far standing at ₹8,320 crore. While the FPIs inflows remain fluctuating throughout the month, DIIs, largely led by the mutual funds continue to acquire the local equities at a rapid pace, providing cushion to the overseas investors selling. In the current month, DIIs have added over ₹60,000 worth of stocks.
Investors rotate to large-caps
The June rally saw a shift in investor sentiment to more fundamentally strong large-cap stocks as they appear to find valuations in this segment more reasonable compared to mid- and small-cap stocks, which are trading at expensive multiples.
Large-cap banks, in particular, have remained in the spotlight throughout the month as the RBI’s ongoing efforts to revive credit demand by injecting more liquidity into the system have driven significant interest toward these counters.
In addition, NBFC stocks have also attracted interest, boosted by the RBI’s surprise 50 basis point cut in the repo rate and a 100-basis point reduction in the CRR, driving expectations that these measures could help in driving a sharp surge in vehicle and consumer durable loans.
Moreover, the increase in the loan-to-value (LTV) ratio for gold loans has fueled a rally in gold-focused NBFCs, while the rate cuts have also sparked gains in real estate stocks. Overall, the RBI has provided a much-needed policy boost to the Indian stock market.
Apart from the rate-sensitive stocks, tech stocks have also supported the indices to stay higher, with Nifty IT ending the month with a solid gain of 4.36%, building on a 4.3% gain in May.
37 Nifty 50 stocks close in green
Among the top performers that powered the Nifty 50 higher for a fourth straight month was Jio Financial Services, which emerged as the index’s top gainer with a 14% rise, driven by multiple developments that boosted demand for the stock in the Indian market.
Zomato was another notable gainer, jumping over 10%. Despite rising competition in the food delivery and quick commerce space, investors continue to see the company as strongly positioned to withstand the pressure.
Grasim Industries made a strong comeback in June, gaining nearly 7%, while Trent extended its winning streak to a third consecutive month, adding another 10% to its ongoing rally. Bharti Airtel shares also delivered an 8% gain during the month, crossing the ₹2,000 mark for the first time.
Overall, 37 Nifty 50 stocks closed the month in the green, according to Trendlyne data.
Indian stock market faces test as US tariff pause nears end
As the Indian stock market ended in the green for the fourth straight month, the sustainability of the rally now hinges on upcoming global developments, with tariffs taking center stage. The 90-day reciprocal tariff suspension announced by U.S. President Donald Trump in April is nearing its end.
There had been growing expectations that Trump might extend the pause by a few more months. However, he downplayed media reports suggesting an extension. On Sunday, he stated that he has no plans to prolong the 90-day suspension beyond July 9, the deadline set for trade negotiations, and that his administration will begin notifying countries that trade penalties will take effect unless agreements are reached.
“Letters will start going out pretty soon,” Trump said, referring to the upcoming deadline.
“We’ll look at how a country treats us—are they good, or are they not so good? Some countries we don’t care about; we’ll just send a high number out,” Trump told Fox News Channel’s Sunday Morning Futures during a wide-ranging interview taped Friday and aired Sunday, according to the Associated Press.
Those letters, he said, would include messages like, “Congratulations, we’re allowing you to shop in the United States of America. You’re going to pay a 25% tariff, or a 35%, or a 50%, or 10%.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
