June 16, 2025 | Mumbai — Indian stock markets opened the week on a bullish note as the BSE Sensex jumped over 550 points while the Nifty 50 tested the critical 24,900 mark. A renewed interest in technology stocks, coupled with easing domestic inflationary signals and robust corporate earnings expectations, helped lift investor sentiment. The rebound came after two consecutive sessions of losses amid escalating geopolitical tensions in the Middle East, particularly between Israel and Iran, which triggered volatility in global equities and commodity prices. On the other hand, broader markets underperformed, with midcap and smallcap indices struggling to hold gains in a risk-averse environment.
Highlights
Sensex climbed 550 points; Nifty approached the 24,900 mark.
IT stocks led gains amid broader market underperformance.
Investor sentiment revived despite continued geopolitical instability.
Volatility eased following an uptick in global indices during Asian trading hours.
Technology Sector Drives Benchmark Indices as Defensive Rotation Boosts IT Stocks
IT stocks emerged as the top-performing sector on the Nifty, with investors rotating into defensives as global risk aversion intensified. Heavyweights such as Infosys, HCL Tech, and TCS recorded solid intraday gains, contributing significantly to the rally in benchmark indices. Analysts attributed the surge to expectations of improved deal pipelines in the second half of FY2026, a stabilizing U.S. macroeconomic environment, and weakening INR tailwinds aiding export-driven earnings. While broader sectors such as banking and auto witnessed mixed trends, the tech space attracted safe-haven buying, making it the standout performer on Monday. Foreign institutional investors (FIIs), after days of outflows, returned to the market with modest purchases, further reinforcing the rebound.
Highlights
Infosys, HCL Tech, and TCS drove IT sector rally on Nifty.
Defensive rotation amid global instability lifted tech stocks.
Weak INR and stable U.S. outlook supported earnings expectations.
FIIs resumed buying in select blue-chip tech counters.
Read more : Tata Motors Share Price Drops After JLR Warns of Cash Flow Pressure, China Market Risks
Mixed Performance in Broader Markets as Midcaps and Smallcaps Decline
Despite optimism in frontline indices, broader markets painted a contrasting picture with the BSE Midcap and Smallcap indices ending down by 0.5% and 0.7% respectively. Investors appeared to adopt a cautious stance toward relatively illiquid and higher-beta stocks, fearing adverse spillovers from global risk factors. Sectors such as real estate, consumer durables, and microcap manufacturing saw increased selling pressure. While market breadth on NSE was nearly evenly split between advances and declines, high volatility in smaller segments suggested nervousness ahead of key global central bank decisions and further developments in the Middle East conflict.
Highlights
BSE Midcap and Smallcap indices declined amid broader risk-off tone.
Selling was concentrated in real estate, microcap, and retail sectors.
Volatility in small segments rose, indicating fragile investor confidence.
Market breadth remained balanced, but sentiment in broader markets weakened.
Geopolitical Escalation Triggers Oil Price Spike, Raises Concerns Over India’s Import Bill
Tensions between Israel and Iran continued to cast a long shadow over global financial markets. Following Israel’s reported airstrike on an Iranian nuclear facility, oil prices surged past $76/barrel amid fears of prolonged supply disruptions in the Middle East—a region that supplies nearly a third of the world’s crude. The Indian economy, heavily dependent on energy imports, faces renewed pressure on its trade deficit and inflation trajectory if oil sustains these elevated levels. While the rupee held relatively stable against the U.S. dollar on Monday, any sustained geopolitical escalation could destabilize macroeconomic stability and prompt RBI intervention.
Highlights
Brent crude surged past $76/barrel due to supply fears.
India’s energy import dependence exposes trade deficit risks.
Rising oil prices could impact domestic inflation and fiscal balance.
RBI may intervene if geopolitical volatility escalates further.
India Inc’s Q1 FY2026 Outlook Strengthens with Higher Margins and Stable Demand Trends
According to ICRA’s latest assessment, India Inc is expected to post an operating profit margin (OPM) of 18.2–18.5% in Q1 FY2026, marking a year-on-year expansion of up to 40 basis points. The improvement is attributed to stable consumer demand, easing input costs, and sequential repo rate cuts totaling 100 basis points since Q4 FY2025. Sectors like real estate, power, hospitality, and aviation are expected to maintain momentum, while export-heavy industries continue to face headwinds due to slowing global trade. Analysts highlighted that investment in sunrise sectors such as semiconductors, electric vehicles, and defense-linked manufacturing are expected to sustain capital formation despite broader global uncertainty.
Highlights
India Inc’s OPM expected to reach 18.5% in Q1 FY2026.
Interest coverage ratio may improve to 5.2x amid lower rates.
Strong demand in domestic sectors offsets weak export performance.
Investment outlook positive in EVs, semiconductors, and defense.
SEBI Resolves Over 4,400 Investor Complaints in May via SCORES Redressal Platform
The Securities and Exchange Board of India (SEBI) resolved 4,493 investor complaints through its online SCORES platform in May 2025, demonstrating efficiency in retail investor grievance redressal. The regulator received a total of 4,793 new complaints during the month, with the total pending cases rising slightly to 4,563. Notably, the average resolution time for Action Taken Reports was just eight days, highlighting SEBI’s push for timely accountability from market entities. Only one complaint, related to Smartowner Capital Growth Trust, remained unresolved for over three months. The data reflects SEBI’s continuous focus on improving investor protection and transparency in Indian capital markets.
Highlights
SEBI resolved 4,493 complaints in May via SCORES portal.
Resolution times averaged 5–8 days depending on complaint type.
Pending cases rose marginally to 4,563 by May 31.
Focus remains on investor protection and compliance enforcement.
Global Cues Support Asian Markets While Local Equities Regain Momentum
Asian indices opened higher on Monday, providing a positive backdrop for Indian equities. Japan’s Nikkei 225 rose over 1.1%, marking its strongest intraday gain in nearly three weeks. Futures on the S&P 500 and Nasdaq traded in the green as U.S. bond yields stabilized after last week’s spike. Market experts noted that despite geopolitical risks, global investors are beginning to position for a potential pause or even reversal in the U.S. Fed’s monetary policy cycle amid cooling inflation indicators. This has triggered buying across risk assets, including emerging markets like India. However, analysts continue to advise caution given the unpredictable nature of geopolitical escalations and upcoming central bank meetings.
Highlights
Nikkei 225 and S&P 500 futures gained amid improving sentiment.
Stabilizing U.S. yields supported risk assets globally.
Fed policy trajectory remains key for investor confidence.
Indian equities benefited from global risk-on mood, despite war jitters.
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