Indian financial markets closed the first week of June 2025 on a positive note, after robust domestic institutional buying and encouraging sentiment in major sectors. Yet, the coming weeks are crucial even as global economic information as well as rising volatility indicators are in that direction.
Global Economic Backdrop
- Crude was priced at about $66.41 per barrel, indicative of relative calm.
- Currency: INR/USD exchange rate was at ₹85.63 to a dollar.
- Gold & Silver: Gold touched ₹96,500 and silver reached ₹1,05,500 — both indicating safe-haven buying.
- Base Metals: There was a bullish trend in base metals, which is likely due to restocking and infrastructure outlay globally.
- US Market Snapshot:
- Dollar Index: 99.16
- US 10-Year Bond Yield: 4.50%
- VIX: Approximately 14.90, reflecting moderate volatility.
While that, US nonfarm payrolls shed 1.39 lakh, taking unemployment to 4.2%. The US market ended the week on a high note despite increased volatility and a high-profile Musk-Trump showdown grabbing headlines.
Indian Market Highlights
- FII net purchase was ₹1,009 crore.
- Much higher DII buying at ₹9,342 crore.
- Sensex closed at 82,445, Nifty at 25,103, and Bank Nifty at 56,840.
- Sectors that saw heavy purchase were:
- IT
- Oil & Gas
- Metals
- Pharma
- Auto
- Midcaps & Smallcaps
Major Policy & Financial Developments
- PNB and BOI lowered their RLLR to 8.35% from 8.85%.
- UCO Bank lowered MCLR by 0.10% w.e.f. June 10.
- Indian Bank established RBLR higher at 8.20% from 8.70% (appears to be correction mistake).
- Government is considering “One Agent, One Life, One Health, One General Insurance Company” idea to simplify insurance distribution.
- Dispute of ₹32,403 crore GST with Infosys has been settled, taking away a large overhang.
Corporate Deal & Announcement
- AFCONS received a ₹700 crore order from Reliance.
- L&T to raise ₹750 crore ESG bonds.
- JK Cement took 60% stake in SAIFCO Cement for ₹149.81 crore.
- RITES, Hindustan Copper signed MoU for critical mineral supply chain.
- GRSE joined hands with Sweden & Denmark to strengthen marine systems.
- JSW Steel reported:
- Ramped up crude steel output 8% YoY to 22.73 lakh tonnes
- Domestic output increased by 9%, 80% capacity utilisation.
- Bharti Airtel signed a multi-year network operations agreement with Ericsson.
Auto Sector Watch
Mahindra & Mahindra:
- Production: Increased by 27.6% to 89,626 units
- Sales: Increased by 16.6% to 80,458 units
- Exports: Increased by 36.7%
Hyundai Motors disposed of 23.6 lakh shares of TN Wind Farm at ₹16 crore.
Business Expansion & Updates
- Bazaar Style and Electronics Mart opened new stores in Uttar Pradesh and Andhra Pradesh, respectively.
- Ethos raised ₹410 crore through rights issue.
- Glenmark Pharma launched BRUKINSA, an anti-cancer drug, in India.
- MedPlus stores in Kolkata, Tamil Nadu, and Andhra Pradesh faced temporary license suspensions.
- Smaaash Entertainment became a fully-owned subsidiary after providing a ₹116 crore corporate loan.
- UPL’s associate company sold all assets for $125 million.
- Hindustan Zinc to consider dividend declaration on June 11.
- SEAMEC signed a charter hire deal with Dubai’s Mubarak Bridge.
- Aditya Birla Real Estate & IFCI awarded ₹420 crore projects.
Performance of Insurance Industry
- HDFC Life: Premium increased by 33%, APE by 19%
- ICICI Pru Life: Premium increased by 7%, APE by 1%
- Axis Max Life: Premium increased by 26%, APE by 28%
- SBI Life: Premium increased by 25%, APE by 13%
- LIC: Premium increased by 11%, APE by 21%
☕ Future and Strategic Developments
- MCX received SEBI approval to list Electricity futures.
- Bhikaji Foods-Vindhyavasini Sales merger approved by NCLT.
- BlackRock and Jio Finance initiated a 50:50 JV for future plans.
- Block transactions of ₹5,058 crore were executed at ₹250 per share on 20.23 lakh shares.
- Bajaj Finance announced June 16 as record date for entitlement tracing.
Conclusion
India’s equity markets are walking a delicate tightrope between global economic issues and robust domestic fundamentals. With considerate FII/DII inflows, peaceful bond yields, and good corporate action, the investor mood is upbeat. Pharma, Steel, Financials, Auto, and Insurance will be short-term focus areas.
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