The Indian stock market continued its upward momentum on Thursday, June 26, 2025, with both benchmark indices soaring to their highest closing levels of 2025. This impressive performance was largely driven by sustained optimism following the Israel-Iran ceasefire and robust domestic cues, including strong institutional buying and positive sentiment surrounding the ongoing HDB Financial Services IPO. The market's breadth remained positive, signaling broad-based participation in the rally.
Table of Contents
- Market Snapshot: Key Indices and Movement
- Sectoral Performance Overview
- Top Gainers and Reasons
- Top Losers and Reasons
- FII & DII Activity
- IPO Highlights
- Global Markets & Geopolitical Impact
- Economic Data & Policy Developments
- Final Market Wrap Up
Indian benchmarks opened firm and maintained a strong positive trajectory throughout June 26, extending their gains for the third consecutive session.
- Sensex: The benchmark BSE Sensex soared, closing at 83,755.87, a remarkable gain of 1.21% or 1,000.36 points from its previous close.
- Nifty 50: The Nifty 50 also surged, ending the day at 25,549.00, up 1.21% or 304.25 points from its previous close.
Wrap-up: Both the Sensex and Nifty 50 not only continued their rally but also settled at their highest levels since October 2024. This robust performance was underpinned by a combination of easing global tensions and strong domestic factors, demonstrating the market's increasing ability to attract and retain capital.
The market on June 26, 2025, witnessed broad-based gains, with several key sectors contributing significantly to the rally.
Top Gaining Sectors:
- Bank Nifty touched a record high, led by a strong performance from HDFC Bank.
- Index heavyweights across various sectors provided significant support to the rally.
Broader Market Performance:
- The Nifty MidCap 100 index closed 0.59% higher at 59,227.40 levels.
- The Nifty SmallCap 100 index surged 0.42% to end at 18,805.60 levels. The market breadth was largely positive, with 1,474 stocks advancing and 1,397 stocks declining on the NSE, while 104 scrips remained unchanged.
Sectors Facing Headwinds:
- While the overall sentiment was positive, some individual stocks in the pharma and auto sectors faced profit booking.
Wrap-up: The widespread participation in the rally, particularly the strong showing by Bank Nifty and other index heavyweights, signals broad investor confidence. The relative underperformance in some pockets like pharma and auto indicates selective consolidation after recent gains.
Individual stock movements on June 26, 2025, highlighted a focus on large-cap value and growth stocks.
- Shriram Finance: Emerged as the top contributor on the Nifty50 index, surging 3.69% to ₹700.00..
- Jio Financial Services: Rose 3.05% to ₹312.55, reportedly on the back of an infusion of ₹190 crore into Jio Payments Bank.
- Tata Steel: Advanced 2.56% to ₹160.40, likely benefiting from positive sentiment in the metal sector.
- Bharti Airtel: Gained 2.54% to ₹2,015.60 and hit a 52-week high, indicating strong investor confidence in the telecom sector.
- Hindalco Industries: Increased 2.48% to ₹689.30, reflecting positive trends in the metals space.
Wrap-up: The top gainers largely comprised of financial services, metals, and telecom stocks, demonstrating a shift towards sectors with strong fundamental outlooks and those benefiting from broader economic recovery.
Despite the overall market surge, some prominent stocks experienced declines on June 26, 2025.
- Dr Reddy's Laboratories (DRREDDY): Declined by 1.31% to ₹1,324.00, due to profit booking after a rally and broader pharma sector pressure from US FDA concerns and cautious generic pricing outlook.
- Hero MotoCorp (HEROMOTOCO): Fell by 0.45% to ₹4,281.50, due to lower-than-expected monthly sales figures and margin pressure from rising input costs.
- Tech Mahindra (TECHM): Declined 1.00% to ₹1,688.00, due to general weakness in the IT sector.
- State Bank of India (SBIN): Declined by 0.50% to ₹796.05, as shares edged lower amid sectoral consolidation in banking stocks, concerns over rising bond yields, and the announcement of a large Qualified Institutional Placement (QIP) which is the first share sale in eight years.
- Wipro (WIPRO): Declined by 0.52% to ₹268.00, facing overall weakness in the IT sector, concerns over muted revenue outlook, and a dip below its 100-day Simple Moving Average.
Wrap-up: The underperforming stocks were predominantly from the pharma and auto sectors, reflecting profit-taking and specific industry headwinds, contrasting with the broader market's optimistic trajectory.
Institutional investor activity on June 26, 2025, continued to shape market dynamics.
FIIs (Foreign Portfolio Investors) Activity (June 25, 2025):
- Net sellers in the Indian cash market, offloading shares worth ₹2,427.74 crore.
- Significantly increased their net short positions in the futures market, moving from ₹1.02 crore to a substantial ₹1.09 lakh crore, suggesting a hedging strategy or a more pronounced bearish outlook for the near term among foreign investors.
DIIs (Domestic Institutional Investors) Activity (June 25, 2025):
- Demonstrated strong support by purchasing shares worth ₹2,372.96 crore. This substantial buying almost entirely offset the FII selling in the cash market.
Wrap-up: The robust buying by DIIs on June 25 once again proved crucial in counterbalancing FII selling, providing a strong domestic cushion and contributing significantly to the market's resilience, highlighting the increasing maturity of the Indian domestic institutional investor base.
The HDB Financial Services IPO continued to be a key event in the primary market on June 26, 2025.
HDB Financial Services IPO:
- The highly anticipated IPO was subscribed 0.96 times by the end of Day 2 (June 26, 2025, 3:44:46 PM).
- Retail Individual Investors (RIIs) portion was subscribed 0.64 times.
- Qualified Institutional Buyers (QIBs) segment saw an increase in bids to 0.35 times (from 0.01 times on Day 1).
- Non-Institutional Investors (NIIs) category was subscribed 2.06 times.
- Employee Reserved portion saw strong interest with 2.89 times subscription.
- Grey Market Premium (GMP) for HDB Financial Services IPO rose to ₹59, suggesting a potential listing gain of approximately 7.97%.
Upcoming IPO Pipeline: India maintains its position as a global leader in IPO activity, with a robust pipeline of high-profile IPOs expected throughout 2025, including major offerings from companies like Reliance Jio, Lenskart, NSE, JSW Cement, Tata Capital, Zepto, NSDL, and Flipkart, indicating strong investor confidence and a maturing capital market.
Wrap-up: The HDB Financial Services IPO, despite a cautious start, gained significant momentum on Day 2, particularly from NIIs and employees, showcasing growing investor confidence as the offering progresses. The improved subscription figures and GMP reflect positive market sentiment for this large issue.
Global developments continued to play a significant role in shaping market sentiment on June 26, 2025.
- Israel-Iran Ceasefire: The ceasefire between Israel and Iran continued to be a dominant positive driver, sustaining reduced geopolitical tensions and contributing to global market stability, which in turn supported the Indian market rally.
- Crude Oil Updates: Oil prices remained steady after erasing earlier gains. Brent crude futures fell marginally by 0.09% to $67.62 a barrel, while US West Texas Intermediate crude fell 0.03% to $64.90 a barrel. The market is keenly watching the stability of the Iran-Israel ceasefire and global demand signals. Lower crude oil prices remain highly beneficial for import-reliant India.
- US Federal Reserve Commentary: Markets reacted sharply to growing concerns over the Federal Reserve's independence, sending the US Dollar to its lowest levels in over three years. This dollar weakness lifted major currencies and risk assets globally. Gold (XAU/USD) rose toward recent highs near $3,360 as the US Dollar continued to decline.
- US Consumer Confidence: Despite some negative US economic data (soft housing and retail figures), the positive geopolitical news of the ceasefire and concerns about the Fed's independence appeared to largely overshadow these indicators.
Wrap-up: The continued de-escalation of Israel-Iran tensions and the weakness in the US Dollar due to concerns over Fed's independence were key drivers for global and Indian markets. While crude oil prices remained relatively stable, the overall geopolitical landscape fostered a risk-on sentiment.
Beyond daily market movements, broader economic and policy factors continued to provide a supportive backdrop for Indian markets.
- RBI Decisions and Inflation Numbers:
- The Reserve Bank of India (RBI) had earlier surprised markets on June 6 with a larger-than-expected 50 basis points repo rate cut to 5.50% and a shift in monetary policy stance from 'Accommodative' to 'Neutral'. This was the third consecutive rate cut in 2025, totaling 100 bps since February.
- India's consumer inflation (CPI) has consistently remained below the RBI's 4% target since February, with the most recent print in May at 2.82%, providing the RBI with greater flexibility to support growth.
- The RBI's latest "State of the Economy" report highlighted India's economic resilience despite global risks, with high-frequency indicators for May pointing towards robust activity.
- US Federal Reserve News: The Fed maintained the federal funds rate steady. However, growing concerns about the Fed's independence amid rising political pressures led to a significant decline in the US Dollar.
Wrap-up: India's benign inflation trajectory and the RBI's pro-growth stance, exemplified by recent rate cuts and a shift to a neutral stance, continue to create a favorable domestic economic environment. This, coupled with strong fundamentals, provides a crucial buffer against external volatility, even as global monetary policy and currency dynamics remain in focus.
The Indian stock market demonstrated exceptional strength on June 26, 2025, surging to new highs for the year. This rally was largely fueled by the sustained positive impact of the Israel-Iran ceasefire, which fostered global stability, and significant domestic tailwinds.
Domestic Institutional Investors (DIIs) continued to play a pivotal role, absorbing Foreign Institutional Investor (FII) selling and underscoring the increasing depth and maturity of India's domestic liquidity. The HDB Financial Services IPO gained substantial traction on its second day, reflecting discerning yet growing investor interest in the primary market.
Sectoral performance was largely positive and broad-based, with financial services, metals, and telecom stocks leading the charge. While some profit booking was observed in the pharma and auto sectors, the overall market sentiment remained overwhelmingly bullish.
Looking ahead, the market is poised to be influenced by ongoing global geopolitical stability, crude oil price movements, and importantly, upcoming corporate earnings. Investors are advised to maintain a focused approach on granular stock picking and to stay informed about both macro-economic developments and company-specific fundamentals. Caution and informed decision-making will be key for navigating the market's continued upward trajectory.