Indian markets stay strong in June despite tensions

Indian markets stay strong in June despite tensions

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New Delhi

Indian stock markets stayed strong in June 2025 despite geopolitical tensions mid-month, thanks to solid economic data and better investor confidence, according to a report by PL Asset Management.

The Nifty 50 index rose 3.1% in June, pushing its one-year gain to 6.3%. The Small-cap 250 index led the monthly rise with a 5.73% jump and delivered a 4% annual return, showing that investors are again interested in smaller companies. The Nifty Mid-cap index also rose 4.1% for the month and 5.6% over the year.

The report noted that sectors like digital (5.42%), infrastructure (4.89%), and tourism (4.38%) did well in June. Over the year, defence (21.78%), healthcare (15.01%), and finance (14.3%) showed strong performance. Banking and IT also performed well, backed by growing credit demand and digital adoption.

Improved economic conditions like falling inflation, strong tax collections, and capital spending helped maintain market momentum. A ceasefire overseas also boosted global investor confidence.

Siddharth Vora, Fund Manager at PL Asset Management, said external risks like changing foreign investments, tariffs, and the monsoon still need attention in the second half of 2025.

Market sentiment has been improving since March, with more stocks trading near 52-week highs. A key indicator Nifty500 Equal Weight vs Nifty500 1-year return spread is rising again, suggesting wider market participation and possible trend reversal.

Overall, June showed strong resilience in Indian equities, driven by stable economic factors and growing investor interest across sectors.

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