18 June 2025 | Indian Equities | Market Movement, Geopolitical Tensions, Investor Sentiment
The Indian stock market opened on a cautiously optimistic note on Wednesday, June 18, 2025, as benchmark indices Sensex and Nifty witnessed a minor pullback from Tuesday’s losses. Despite the looming threat of further escalation in Middle East tensions and uncertainty ahead of the U.S. Federal Reserve’s upcoming policy stance, traders showed signs of resilience. By 9:35 am, the Sensex had climbed 178 points to trade at 81,761.49, while the Nifty rose over 69 points to 24,922.50. A positive advance/decline ratio, at 32:18, underscored mild bullish momentum amid broader market hesitation. Market participants remain vigilant ahead of global monetary policy cues, while tracking sectoral rotation among heavyweights.
Highlights
Sensex rises 178 points to 81,761.49; Nifty gains 69 points to 24,922.50.
Markets show early signs of recovery after Tuesday’s decline.
Advance/decline ratio stands at 32:18, indicating moderately bullish sentiment.
Global headwinds include Middle East conflict and Fed policy uncertainty.
Also Read : Indian Oil to Fuel NTPC’s 50 MW Andaman Power Plant with LNG by 2027-28
Financials and Auto Stocks Anchor Market Gains Amid Broad-Based Volatility
Indian equity benchmarks are currently being supported by pockets of strength in financial and auto stocks, sectors that are generally sensitive to both domestic liquidity cycles and global macroeconomic cues. HDFC Bank, IndusInd Bank, and Bajaj Finance witnessed early buying interest, contributing to intraday index stability. Auto majors including Maruti Suzuki and Tata Motors showed signs of accumulation, as falling domestic fuel prices and improved urban demand boosted near-term sentiment. However, broader participation remains muted, with midcap and smallcap indices largely flat, signaling investor caution at higher valuations. The volatility index (India VIX) has also inched up, reflecting increasing nervousness about global monetary outcomes and crude oil pricing.
Highlights
Banking and auto stocks such as IndusInd Bank, Bajaj Finance, and Tata Motors drive early gains.
Midcap and smallcap indices trade flat, suggesting selective market participation.
India VIX rises marginally, indicating rising volatility concerns.
Urban demand and lower fuel prices contribute to positive auto stock momentum.
Hindustan Zinc Tanks as Vedanta Offload Rumors Swirl; Most Active Stock on NSE
Among the most actively traded stocks in the early hours was Hindustan Zinc, which slid over 6% following reports that parent company Vedanta may offload shares worth ₹3,323 crore. This follows the recent announcement of a ₹12,000 crore capex plan to build an integrated zinc smelting facility in Rajasthan. Investor sentiment took a hit as concerns mounted around equity dilution, funding pressure, and near-term margin compression. The counter witnessed elevated volumes and heavy block trades, reflecting aggressive institutional exits. Hindustan Zinc’s sharp decline pulled the metal index lower and weighed on midcap performance, despite broader index resilience.
Highlights
Hindustan Zinc drops 6% as Vedanta may offload ₹3,323 crore in shares.
Stock sees high intraday volumes; most active on NSE.
Concerns over equity dilution and capex-led cash flow pressure weigh on sentiment.
Recent ₹12,000 crore capex announcement adds to investor caution.
BSE Ltd Slumps 6% After Tuesday Expiry Shift Cleared by SEBI
BSE Ltd shares came under sharp pressure on Wednesday after SEBI gave the go-ahead to allow Tuesday expiry of derivatives on the rival NSE. The regulatory move is expected to further erode BSE’s limited derivative volumes, potentially undermining its recent growth in active trading segments. Market participants see this as a regulatory blow that favors NSE’s dominance and limits BSE’s ability to differentiate its product offerings. The stock fell over 6% and was among the top laggards in the midcap space. The development reaffirms concerns over competitive asymmetry and scalability in India’s exchange ecosystem.
Highlights
BSE Ltd shares slide 6% after SEBI approves Tuesday expiry for NSE.
Regulatory decision viewed as favoring NSE’s dominance in derivatives.
Market sees this as a structural headwind for BSE’s growth efforts.
BSE stock ranks among top midcap losers for the session.
UGRO and Delhivery Buck Trend with Corporate Action-Driven Gains
Amidst the cautious tone, select stocks such as UGRO Capital and Delhivery outperformed on the back of key announcements. UGRO rallied over 7% after it revealed plans to acquire Profectus Capital, a move that investors view as scale-enhancing and strategically accretive. Meanwhile, Delhivery advanced over 2% after the Competition Commission of India approved its acquisition of Ecom Express, strengthening its e-commerce logistics play. These specific corporate developments helped these counters buck the broader market trend and attract rotational buying from institutions hunting for M&A-driven alpha in a relatively range-bound environment.
Highlights
UGRO Capital jumps 7% on Profectus Capital acquisition news.
Delhivery gains 2% post CCI approval for Ecom Express acquisition.
Corporate action and M&A momentum provide counter-trend opportunities.
Institutional focus evident on deal-driven names amid market flatness.
Global Markets Weigh Heavy on Sentiment as Traders Brace for Fed Commentary
Global market cues remained mixed, offering little clear direction to Indian investors. While Japan’s Nikkei 225 and Topix indices rose 0.7% and 0.6%, respectively, Hong Kong’s Hang Seng dropped 1.2%, and the Shanghai Composite slipped 0.2%. Euro Stoxx 50 futures also indicated a weak European open with a 0.4% decline. With S&P 500 futures mostly flat in Tokyo trade, sentiment was weighed down by uncertainty ahead of the U.S. Federal Reserve’s commentary. Markets are closely watching for any signs of hawkish tilt or delay in rate cuts, both of which could tighten global liquidity and impact emerging market fund flows.
Highlights
Mixed global signals from Asia and Europe add to investor caution.
Hang Seng falls 1.2%; Euro Stoxx 50 futures indicate 0.4% drop.
Fed policy announcement expected to impact EM liquidity dynamics.
S&P 500 futures largely unchanged, reflecting market indecision.
