The Indian stock market concluded Wednesday, June 18, 2025, on a cautious note for the second consecutive day, with benchmark indices Sensex and Nifty 50 registering declines amidst continued geopolitical tensions and mixed global cues. Despite a brief positive opening, investor sentiment remained subdued due to ongoing uncertainties and profit-booking in several key sectors.
While most sectors ended in the red, the Auto and Banking sectors showed resilience, managing to close with marginal gains. Domestic Institutional Investors (DIIs) continued to play a crucial role in stabilizing the market by absorbing selling pressure, a trend that has been a significant support in recent trading sessions.
Table of Contents
- Key Market Indices Performance
- Sector-Wise Market Performance
- Top Stock Market News of the Day
- FII and DII Trading Activity
- IPOs, Listings & Market Buzz
- Top Gainers & Losers - 18 June 2025
- Economic & Global Market Factors
- What to Watch Tomorrow
- Final Takeaway
The Indian equity markets experienced a marginal downturn on Wednesday, with both key benchmark indices closing in negative territory.
- Sensex: Concluded the trading day 138.64 points, or 0.17%, lower, settling at 81,444.66.
- Nifty 50: Saw a decline of 41.35 points, or 0.17%, to close at 24,812.05.
The trading session opened on a mixed note but soon turned cautious, primarily dragged down by geopolitical concerns. The market witnessed volatility throughout the day, failing to sustain early gains. Twenty out of the thirty Sensex stocks closed lower, indicating broad-based selling pressure. The persistent geopolitical risks and cautious investor sentiment overshadowed any brief periods of optimism.
On the sectoral front, Wednesday's trading session presented a mixed picture, with most segments experiencing declines.
Outperforming/Gaining Sectors:
- Nifty Bank: Surged 115 points or 0.21% to end at 55,828, breaking the ranks with the overall bearish market sentiments.
- Nifty Auto: Emerged as the top gainer among sectoral indices, up by 0.55%, supported by expectations of demand revival.
- Consumer Durables and Consumer Discretionary also closed with gains.
Underperforming/Declining Sectors:
- Nifty IT: Declined by 0.65%, with nine out of ten constituent companies trading in the red. Infosys, Coforge, and TCS were among the top losers in this sector.
- Nifty Media: Was the top loser, down by 1.03%.
- Nifty Metal, Oil & Gas, Realty, Energy, PSU Bank, and FMCG sectors also settled in the red.
The resilience of the Nifty Bank and Auto indices suggests a focus on domestic-oriented sectors, potentially benefiting from expectations of demand revival and supportive domestic macros. In contrast, the IT sector's decline indicates caution among investors regarding global macroeconomic cues and potential softness in US tech demand, especially given its strong performance on the preceding day.
Several key global and domestic developments shaped market movements on June 18, 2025.
- Geopolitical Tensions: Escalating tensions in West Asia, particularly the ongoing conflict between Israel and Iran with continued missile attacks and reports of airstrikes on Iran's uranium facility, continued to weigh heavily on market sentiment. This sustained geopolitical instability contributed to the downturn in equities.
- US Federal Reserve Meeting: Investors keenly awaited the conclusion of the US Federal Reserve's Federal Open Market Committee (FOMC) meeting, scheduled for June 17-18. The market was looking for hints regarding potential interest rate cuts, with expectations leaning towards the Fed keeping rates unchanged for the fourth straight time. The prospect of higher inflation due to the ongoing tariff threats could influence the FOMC's decision.
- Promoter/PE/VC Selling: Concerns over stretched valuations and a potential supply overhang in the market arose as promoters, private equity, and venture capital investors offloaded shares worth over ₹40,000 crore so far in June. This significant selling activity could be a red flag for Nifty bulls.
- Hindustan Zinc: The stock saw a sharp fall, attributed to block deals at a discount and the stock going ex-dividend (₹10 per share) on June 17. Despite this, the company announced plans to double its zinc, lead, and silver production capacity, signaling long-term growth prospects.
- Infosys and Adobe Partnership: Infosys announced a strategic collaboration with Adobe to revolutionize marketing lifecycles for global enterprises using AI, aiming to deliver hyper-personalized customer experiences and enhance workflow efficiency.
While specific FII and DII data for June 18, 2025, was not explicitly available at the time of this report, the trend of DII support absorbing FII selling continued.
- On June 17, 2025, Foreign Institutional Investors (FIIs) recorded net inflows of ₹1,482.77 crore in the cash market, a notable shift from previous outflows.
- In contrast, Domestic Institutional Investors (DIIs) reported robust net inflows of ₹8,207.19 crore in the cash market on the same day.
The FII inflow on June 17 marked a positive change, though DIIs continued to be the dominant buyers, providing significant stability to the Indian market. This sustained domestic support remains a critical counter-balance to global capital flow volatility and underscores the increasing resilience of the Indian market.
The primary market witnessed continued activity on Wednesday, with several IPOs making their debut or opening for subscription.
Today's IPO Activity:
Grey Market Premium (GMP) Trends:
- For the upcoming Arisinfra Solutions IPO, the latest GMP recorded on June 17 was ₹25.
Upcoming IPOs:
- Aakaar Medical Technologies IPO and Safe Enterprises Retail Fixtures IPO are scheduled to open on June 20.
- Mayasheel Ventures Ltd IPO is also slated to open on June 20.
- Globe Civil Projects Ltd and Shri Hare-Krishna Sponge Iron Limited IPO are set to launch on June 24.
The Indian stock market saw mixed individual performances, with banking and auto stocks showing gains amidst broader market pressure.
Top Gainers:
- IndusInd Bank: ₹850.50, gained ₹41.35 (5.11%), surged due to positive brokerage calls and a shift towards resilient banking stocks.
- Mahindra & Mahindra (M&M): ₹3,041.10, gained ₹33.90 (1.13%), supported by expectations of demand revival in the auto sector.
- Eicher Motors: ₹5,443.50, gained ₹102.75 (1.92%), driven by strong domestic sales momentum and easing input costs.
- Maruti Suzuki: ₹12,748.00, gained ₹153.00 (1.21%), benefiting from strength in the auto sector.
- Titan Company Ltd (TITAN): Closed at ₹3,478.80, up ₹73.10 (2.15%), due to positive sentiment towards consumer discretionary stocks and strong company specific performance.
Top Losers:
- Hindustan Zinc Ltd.: ₹452.80, fell ₹33.56 (-6.90%), primarily due to promoter Vedanta offloading shares and the stock going ex-dividend.
- Adani Ports & Special Economic Zone: ₹1,372.60, fell ₹19.70 (-1.41%), likely impacted by broader market cautiousness and specific group stock movements.
- Nestle India: ₹2,340.00 fell ₹21.20 (-0.9%) due to general market weakness and profit booking.
- Tata Consultancy Services (TCS): ₹3,452.20, dropped ₹63.05 (-1.79%), reflecting broader weakness in the IT sector amidst global macroeconomic concerns.
- Hindustan Unilever (HUL): ₹2,297.00 fell ₹31.50 (-1.35%) due to general market weakness and profit booking.
Beyond direct market movements, several broader economic and global factors influenced the Indian stock market.
- Crude Oil Dynamics: Brent crude prices continued their upward trend, reaching around USD 76.20 per barrel. This persistent rise in oil prices, driven by heightened geopolitical risks, poses an inflationary risk for India, a major net oil importer.
- Central Bank Watch: The outcome of the US Federal Reserve's FOMC meeting was keenly awaited by market participants, as it would provide cues on future interest rate trajectories. Investors are expecting the Fed to maintain current rates.
- Indian Rupee: The Indian Rupee depreciated, falling 0.27% to 86.47/USD by 3:30 PM IST.
- Global Cues: Asian markets showed a mixed performance on Wednesday, with Japan posting a merchandise trade deficit. European markets were mostly trading in the green as UK consumer price inflation softened. US markets had ended lower on Tuesday.
As the market looks ahead to June 19, 2025, several factors will be closely monitored.
- US Federal Reserve's FOMC Decision: The outcome and commentary from the US Federal Reserve's meeting will be the most significant global event. Any hints regarding future interest rate policies will heavily influence global and Indian market sentiment.
- Geopolitical Developments: The evolving situation in West Asia will continue to be a critical factor. Any escalation or de-escalation of tensions will directly impact crude oil prices and global risk appetite.
- Global Economic Data: Key global economic data releases, including inflation figures from the UK and Euro area, and trade data from Japan, will be watched for their implications on global growth and central bank policies.
- IPO Listings: The listing of Monolithisch India IPO on June 19 will be watched for its performance and market reception.
- Corporate Earnings: No major Indian corporate earnings are explicitly scheduled for June 19.
The Indian stock market continued its cautious stance on June 18, 2025, with benchmark indices Sensex and Nifty recording further declines. This was primarily driven by persistent geopolitical tensions in West Asia and the anticipation of the US Federal Reserve's policy decision. While the Auto and Banking sectors showed some resilience, broader market sentiment remained subdued, leading to profit-booking in several segments, including IT and Metal.
Domestic Institutional Investors (DIIs) maintained their strong buying activity, providing a crucial cushion against market volatility and highlighting the growing independence of the Indian market from FII outflows. The rise in crude oil prices remains a key inflationary concern.
Market participants will keenly watch the outcome of the US Federal Reserve's FOMC meeting and ongoing geopolitical developments for the market's direction on June 19, 2025.