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Markets end passing week with decent gains amid FIIs buying
Jun-20-2025

Indian markets ended higher with gains of over one and half a percent each in the passing week mainly due to buying in the last trading session of the week as fears of further escalation in the Middle East ebbed, and foreign institutional investors (FIIs) resume buying. Banking, financial services, and insurance stocks rallied as the RBI finalised the new project financing guidelines.

Some of the major developments during the week are:

India's WPI inflation eases to 14-month low in May: Inflation based on wholesale price index (WPI) in India slowed down further to 0.39% in May 2025 as against 0.85% in April 2025. Manufactured Products constituting the major portion of the index remained unchanged at 144.9 (Provisional) in May 2025.

India's merchandise exports decline in May 2025: The commerce ministry data has showed that India's merchandise exports declined 2.17% to $38.73 billion in May over $39.59 billion in May 2024. Besides, merchandise imports fell by 1.73% to $60.61 billion in May over $61.68 billion in May 2024. 

Domestic passenger vehicle wholesales down 0.8% in May: The Society of Indian Automobile Manufacturers (SIAM) in its latest data has showed that domestic passenger vehicle wholesales were down 0.8 per cent at 3,44,656 units in May 2025 as compared to 3,47,492 units in the same month last year.

India’s unemployment rate rises in May: The government data showed that India’s unemployment rate for the month of May rose to 5.6% against 5.1% in April this year. During the same period, the unemployment rate (UR) among females has increased to 5.8% compared to the male UR of 5.6% at the country level.

Listed private non-financial companies reports sales growth during January-March: RBI’s recent data released showed that the sales of listed private non-financial companies grew by 7.1% during January-March quarter of 2024-25 as compared to 8% expansion in the previous quarter and 6.9% during the year.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 1289.57 points or 1.59% to 82,408.17 during the week ended June 20, 2025. The BSE Midcap index losses 201.02 points or 0.44% to 45,480.26, while Smallcap index slipped 991.77 points or 1.86% to 52,378.52. On the sectoral front, S&P BSE TECK was up by 376.22 points or 2.07% to 18,570.73, S&P BSE BANKEX was up by 841.75 points or 1.35% to 63,412.19, and S&P BSE Auto was up by 610.70 points or 1.17% to 52,934.37 were the top gainers, while S&P BSE Healthcare was down by 913.51 points or 2.08% to 43,081.80, S&P BSE Metal was down by 345.81 points or 1.12% to 30,401.55, and S&P BSE Oil & Gas was down by 108.40 points or 0.40% to 27,053.84 were the top losers on the BSE.

NSE movement for the week

The Nifty surged 393.80 points or 1.59% to 25,112.40. On the National Stock Exchange (NSE), Bank Nifty was up by 725.50 points or 1.31% to 56,252.85 and Nifty IT was up by 522.20 points or 1.36% to 38,991.45, while Nifty Mid Cap 100 decreased 231.95 points or 0.40% to 57,995.50 and Nifty Next 50 lost 246.00 points or 0.37% to 66,733.05. 

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 65,209.44 crore and gross sales of Rs 63,999.87 crore, leading to a net inflow of Rs 1,209.57 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 12,618.70 crore against gross sales of Rs 12,765.14 crore, resulting in a net outflow of Rs 146.44 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 126.68 crore and gross sales of Rs 73.72 crore, leading to a net inflow of Rs 52.96 crore.

Industry and Economy

Expressing an optimism over India-UK trade pact, Commerce and Industry Minister Piyush Goyal has said that the India-UK Free Trade Agreement (FTA) brings ‘stability and predictability’ for businesses in both the countries. He added that this will lead to doubling the bilateral trade in five years. He said ‘That gives confidence to business to start investing in each other’s economy and I think this will also pave the way for greater investments in the two economies, add to our trade in goods and services… India and UK can partner in innovation to work together to bring more resilient supply chains, working with each other, complementing each other and adding value and profits to both countries’. 

Outlook for the coming week

In the passing week, Indian markets ended with gains of over a percent amid positive data from wholesale price index (WPI). Inflation based on wholesale price index in India slowed down further to 0.39% in May 2025 as against 0.85% in April 2025. 

The next week is likely to see some volatility with scheduled F&O series expiry on June 26 as traders will be balancing their positions going ahead for the next series. 

In the coming week, investors will be eyeing HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash data to be out on June 23. Foreign Exchange Reserves data going to be out on June 27. 

On the global front, investors would be eyeing few economic data from world’s largest economy, starting with S&P Global Composite PMI Flash, S&P Global Manufacturing PMI Flash, S&P Global Services PMI Flash on June 23, Current Account, Redbook YoY, Richmond Fed Manufacturing Index on June 24, Initial Jobless Claims on June 26, Fed Balance Sheet, Baker Hughes Oil Rig Count on June 27.

Top Gainers 

  • Mahindra & Mahindra (M&M) up by 5.47% was the top gainer on Nifty for the week - M&M gained traction as it received CCI’s approval for acquisition of a nearly 59% stake in SML Isuzu for Rs 555 crore. Separately, its wholly-owned dropdown subsidiary -- Mahindra Aerostructures and Aernnova Aerospace, SAU have entered into multi-year contract valued at around $300 million to manufacture metal sub-assemblies and components for a range of Airbus aircraft.
  • Bharat Electronics up by 5.38% was another top gainer on Nifty for the week - Stocks of defence companies traded higher as escalating tensions between Israel and Iran revived investor interest in sector. There are expectations that renewed concerns likely to increase focus on defence exports. Recently, the company and Israel Aerospace Industries have announced the establishment of a joint venture company.

Top Losers 

  • Adani Ports & Special Economic Zone (SEZ) down by 6.67% was the top loser of the week on Nifty - Adani Ports & SEZ remained under pressure after Iran claimed to have targeted key military and energy infrastructure in Israel’s port city of Haifa. There are concerns that Adani Group’s Haifa Port in Israel could face some disruptions. Haifa Port is operated by a consortium led by APSEZ (70% stake) and Israel’s Gadot Group.
  • Tata Motors down by 5.47% was another top loser of the week on Nifty - Tata Motors traded lower after its unit Jaguar Land Rover (JLR) shared a muted outlook for the current financial year compared to last year. JLR expects its EBIT margin to be between 5% and 7% for financial year 2026, compared to the 8.5% margin it reported in the previous financial year. Meanwhile, the company has launched the all-new LPO 1622 bus in Qatar.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,136.20 on June 20 and lowest level of 24,473.00 on June 16. On the last trading day, the Nifty closed at 25,112.40 with weekly gain of 393.80 points or 1.59 percent. For the coming week, 24,678.20 followed by 24,244.00 are likely to be good support levels for the Nifty, while the index may face resistance at 25,341.40 and further at 25,570.40 levels.

US Market

The U.S. markets traded mostly higher during the week after Federal Reserve announced its widely expected decision to leave interest rates unchanged. It kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December.

Some of the major developments during the week are:

Jobless claims in U.S. pull back off eight-month high: Initial jobless claims dipped to 245,000, a decrease of 5,000 from the previous week's revised level of 250,000. Street had expected jobless claims to slip to 245,000.

U.S. housing starts pull back sharply in May: Housing starts plunged by 9.8 percent to an annual rate of 1.256 million in May after jumping by 2.7 percent to a revised rate of 1.392 million in April. 

Homebuilder confidence in U.S. unexpectedly slips to five-year low in June: The NAHB/Wells Fargo Housing Market Index fell to 32 in June from 34 in May, while Street had expected the index to rise to 36.

U.S. industrial production unexpectedly dips 0.2% in May: The Fed said industrial production dipped by 0.2 percent in May following a revised 0.1 percent uptick in April. Street had expected industrial production to inch up by 0.1 percent.

Import prices in U.S. unchanged in May: Import prices came in flat in May after inching up by 0.1 percent in April. Street had expected import prices to dip by 0.2 percent.

European Market

European markets witnessed a fall during the passing week, amid Middle East tensions, regional inflation data and Central Bank’s decisions.

Some of the major developments during the week are:

Bank of England holds rate steady on higher inflation: The BoE Monetary Policy Committee, led by Governor Andrew Bailey, voted 6-3 to hold the Bank Rate at 4.25 percent. 

Swiss Central Bank lowers policy rate to zero as expected: The bank decided to lower the SNB policy rate by 0.25 percentage points to zero percent. This was the sixth consecutive reduction.

Eurozone inflation eases to 1.9% as estimated: The final data from Eurostat revealed that inflation softened to 1.9 percent in May from 2.2 percent in April. 

UK inflation slows slightly in May: The consumer price index registered an annual increase of 3.4 percent, slightly slower than the 3.5 percent rise seen in April.

Eurozone current account surplus near 1-year low: The current account showed a surplus of EUR 20 billion in April compared to a EUR 51 billion surplus in March.

Asian Market

Asian markets traded mostly lower during passing week as traders remained cautious amid escalation in conflicts between Israel and Iran after Israeli Prime Minister Benjamin Netanyahu ordered intensified strikes on Iran, targeting strategic sites in Tehran.

Some of the major developments during the week are:

Japan core inflation accelerates more than forecast: Japan’s core inflation rose to 3.7% in May -- the highest since January 2023 -- raising concerns about tighter monetary policy.

Japan core machine orders sink 9.1% in April: The value of core machinery orders in Japan was down a seasonally adjusted 9.1% on month in April- coming in at 919 billion yen.

Japan reports trade deficit of 637.6 billion yen in May: Japan posted a merchandise trade deficit of 637.6 billion yen in May, exceeding expectations for a shortfall of 893 billion yen.

China keeps key lending rates steady: The People's Bank of China left its benchmark lending rates steady, as expected, following recent easing measures. It held the 1-year loan prime rate at 3.0% and 5-year LPR at 3.5%.

Hong Kong unemployment rate hits two-year high: Hong Kong’s seasonally adjusted unemployment rate hit a two-year high of 3.5% in the three months ending May, due to some headwinds including shifts in consumption patterns.
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