Discover the latest Indian stock market trends for June 2025, including RBI rate cuts, upcoming IPOs, and key factors like inflation and global cues that could shape market direction.
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The Indian stock market had a solid week, ending a two-week dip and boosting investor confidence. Positive news from India, like the Reserve Bank of India (RBI) making bold moves, helped lift the market, even with global trade concerns lingering. Here’s a simple breakdown of what happened and what to watch for in the coming week.
Market Highlights: Sensex and Nifty Shine
The Sensex and Nifty 50, India’s main stock indices, stayed steady for most of the week but jumped on Friday. The Sensex climbed 738 points to close at 82,189, while the Nifty 50 gained 252 points, crossing the key 25,000 mark. Both indices rose by about 1% for the week.
The RBI surprised everyone by cutting the repo rate (the rate banks borrow at) by 0.5% to 5.5% and lowering the Cash Reserve Ratio (CRR) to 3%, the lowest since April 2021. These changes make it cheaper for banks to lend money, which boosted stocks in banking and other rate-sensitive sectors.
The Bank Nifty, which tracks banking stocks, did even better, rising 1.5% to 56,578.40 and hitting a new high of 56,695. Smaller and mid-sized companies (midcap and smallcap stocks) also outperformed, gaining 2.8% to 4%, showing investors are feeling optimistic.
What’s Next for the Market?
The second week of June 2025 will be important. Investors will keep an eye on several factors that could move the market. Here are the key things to watch:
Inflation and Economic Data
Inflation numbers, like the Consumer Price Index (CPI), and industrial production data will give clues about demand in India. The progress of the monsoon season will also matter, as it affects farming and rural spending.
Ajit Mishra from Religare Broking said, “The RBI’s big rate cut shows they’re serious about boosting India’s economy, even with global challenges. This bold move builds confidence while keeping inflation in check.”
New IPOs on the Way
The stock market will see action with new Initial Public Offerings (IPOs). One major IPO, Oswal Pumps, will open for investment, along with three smaller IPOs in the SME (small and medium enterprises) segment. No new companies are set to list this week, but the IPO buzz will keep investors busy.
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Foreign investors (FIIs) sold stocks worth ₹3,565 crore, but Indian investors (DIIs) poured in ₹25,513 crore, supporting the market. According to Angel One, foreign investors own 18.8% of Indian stocks, compared to 30% in other emerging markets, meaning there’s room for more investment. Sectors like chemicals, telecom, and finance are attracting attention due to trends like the “China+1” strategy, where companies look beyond China for growth.
Global Factors
Global trade talks and US bond yields will impact markets. Some investors sold stocks last week due to global uncertainty, but positive US job data and hopes of easing US-China trade tensions created a slightly optimistic mood.
Vinod Nair from Geojit Investments noted, “The RBI’s rate cut, along with cooling inflation and steady growth, will likely keep investors confident despite global risks.”
Corporate Updates
Starting June 2, 2025, stocks like Adani Ports, Asian Paints, and others will trade ex-dividend, meaning buyers won’t get the upcoming dividend. Some stocks will also trade ex-bonus or ex-split, which could affect prices.
Technical Outlook: What the Charts Say
The Nifty 50 is nearing the top of its current range (24,500–25,100). Breaking above 25,200 could start a new upward trend, possibly reaching 25,600–25,800. If it falls, the 24,400–24,600 range should act as support.
The Bank Nifty broke past 56,000 and could aim for 58,000, making it a key driver for the market. If it dips, 55,350–56,000 should hold as support.
Ajit Mishra suggests a “buy on dips” strategy unless the Nifty falls below 24,600. He recommends focusing on strong stocks in banking, auto, and real estate, which benefit from lower interest rates. Be cautious with sectors like FMCG and IT, which face challenges from global issues or lower profits.
Tips for Investors
The Indian stock market looks promising, but it’s wise to stay selective. Focus on solid companies in growing sectors and keep an eye on economic data and global events. Staying informed and flexible will help you navigate the market’s ups and downs.
