The Indian stock market concluded Tuesday, June 17, 2025, on a cautious note, with benchmark indices Sensex and Nifty 50 registering declines amidst escalating geopolitical tensions and sector-specific headwinds. While the trading session began with a positive bias, investor sentiment quickly turned subdued as global uncertainties and profit-booking weighed heavily on equities.
The technology sector, however, emerged as a notable exception, demonstrating resilience against the broader market downturn. Domestic Institutional Investors (DIIs) continued to provide crucial support, absorbing the selling pressure from Foreign Institutional Investors (FIIs), a trend that has been instrumental in stabilising the market in recent 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 - 17 June 2025
- Economic & Global Market Factors
- What to Watch Tomorrow
- Final Takeaway
The Indian equity markets experienced a downturn on Tuesday, with both key benchmark indices closing in negative territory.
- Sensex: Concluded the trading day 212.85 points, or 0.26%, lower, settling at 81,583.30.
- Nifty 50: Saw a decline of 93.10 points, or 0.37%, to close at 24,853.40.
The trading session opened on a positive note, with the Sensex at 81,869.47 and the Nifty at 24,977.85, supported by strong global cues. However, optimism faded quickly as markets turned cautious, dragged down by domestic and geopolitical concerns. Twenty-one of the thirty Sensex stocks closed lower, reflecting broad-based selling. The swift reversal highlights fragile investor sentiment, where positive global triggers were overshadowed by lingering uncertainties.
On the sectoral front, Tuesday's trading session presented a mixed picture, predominantly characterised by declines across most segments.
Outperforming Sectors:
- Information Technology (IT): Stood out as the sole gainer, defying the broader market trend. The Nifty IT index added 1%, underpinned by strong performances from key constituents such as Tech Mahindra, Infosys, TCS, and HCL Tech.
Underperforming/Declining Sectors:
- Nifty Pharma: Emerged as the top laggard, experiencing a notable decline of 1.89%.
- Nifty Metal: Also suffered significant losses, falling by 1.43%.
- A wide array of other sectors, including Consumer Durables, Oil & Gas, Realty, Auto, Energy, Banking, Fast-Moving Consumer Goods (FMCG), and Media, all recorded declines of up to 1%.
The resilience of the Nifty IT index suggests a movement of capital towards perceived stability. While most sectors were affected by profit-booking and geopolitical concerns, the IT sector likely benefited from its perceived defensive nature and sustained global demand.
This is particularly true given the strong performance of tech stocks in the US market on the preceding Monday. This divergence from the overall market decline indicates that the IT sector's strength was driven by both global thematic tailwinds and the individual strengths of its constituent companies, positioning it as a relatively secure area amidst market volatility.
Several key global and domestic developments shaped market movements on June 17, 2025.
- Geopolitical Tensions: Escalating tensions in West Asia, particularly the ongoing conflict, played a significant role in shaping market sentiment. Indian equity markets traded lower amidst the ongoing conflict. Investors became notably more cautious after US President Donald Trump issued a warning against Iran regarding the conflict, intensifying global anxieties.
This geopolitical instability contributed to the downturn in equities and had ripple effects across commodity markets. Gold prices, a traditional safe-haven asset, rose, and crude oil prices rebounded following President Trump's call for evacuation from Tehran, reflecting concerns over potential supply disruptions.
- US Pharma Tariffs: The Indian pharmaceutical sector faced a significant setback with stocks tumbling after US President Donald Trump announced that tariffs on the sector would be implemented "very soon". This had an immediate and pronounced negative effect, causing the Nifty Pharma sector to decline by 2.05%, hitting an intraday low of 21,516.95. The impact was broad-based, with almost all stocks within the sector experiencing losses.
Aurobindo Pharma recorded the steepest decline, sliding by 3.48%, with Lupin (-3.41%), Granules Pharma (-3.25%), Laurus Lab (-2.86%), Natco Pharma (-2.8%), and Sun Pharma (-2.53%) also being major laggards. The United States accounts for approximately one-third of India's total pharmaceutical exports, making the sector particularly vulnerable.
- Global Cues: Presented a mixed picture, ultimately contributing to the cautious sentiment. Asian markets had shown strength earlier in the day, with Japan's Nikkei rising 0.59%, Australia's ASX200 gaining 0.12%, and South Korea's Kopsi zooming 1.75% ahead of the Bank of Japan's interest rate decision.
Similarly, US markets had closed higher on the preceding Monday. However, this initial global optimism proved to be short-lived for Indian markets, as S&P 500 futures fell, and Mainland China's Shanghai Composite and Hong Kong's Hang Seng Index dropped, influenced by weak economic data and persistent concerns over a sluggish property market recovery.
The activity of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) provides crucial insights into the capital flows influencing the Indian stock market. While specific FII and DII data for June 17, 2025, was not explicitly available at the time of this report, the trends from the preceding day and the cumulative activity leading up to June 17 offer a clear picture of institutional movements.
- On June 16, 2025, Foreign Institutional Investors recorded net outflows of ₹2,539.42 crore in the cash market.
- In stark contrast, Domestic Institutional Investors reported robust net inflows of ₹5,780.96 crore in the cash market on the same day.
Examining the cumulative trends over the four trading days leading up to June 17, FIIs collectively offloaded Indian equities worth ₹8,080 crore. These outflows were primarily concentrated in financials and high-beta sectors.
However, DIIs significantly absorbed this selling pressure, injecting a substantial ₹19,800 crore into the market over the identical four-day period. This strong domestic support was further bolstered by steady retail inflows and underlying domestic confidence.
This consistent and substantial buying by Domestic Institutional Investors serves as a critical counter-balance to the ongoing FII outflows. This sustained domestic support is a key underlying trend that underscores the increasing resilience of the Indian market and its partial independence from global capital flow volatility.
The primary market witnessed a flurry of activity on Tuesday, with several Initial Public Offerings (IPOs) closing their subscription periods, remaining open, or making their market debut.
Today's IPO Activity:
- Among the IPOs concluding on June 17, the Oswal Pumps IPO garnered significant investor interest, being subscribed 22.42 times by 3:07 PM on Day 3.
- The Aten Papers & Foam IPO also concluded its subscription period on Tuesday.
- Several IPOs remained open for subscription on June 17. The Samay Project Services Ltd IPO, on its second day of bidding, was subscribed 1.78 times by 3:10 PM.
- ThePatil Automation IPO saw a subscription of 1.59 times by 2:47 PM on its second day.
- TheEppeltone Engineers IPO opened to robust demand on its first day, with the issue being subscribed 2.96 times by 12:47 PM.
- In terms of new listings, Jainik Power and Cables made its debut. Despite listing at a 25% discount, the shares managed to recover, settling 0.73% higher at ₹82.6 apiece on the NSE SME platform Emerge.
Grey Market Premium (GMP) Trends:
- For the Monolithisch India IPO, whose allotment status was expected to be finalised on June 17 with listing anticipated on June 19, the GMP indicated an estimated listing at ₹183 apiece on the NSE SME, a significant premium of 27.97% over its issue price.
- For the upcoming Arisinfra Solutions IPO, which is set to open on June 18, the latest GMP recorded on June 17 was ₹25.
Upcoming IPOs:
- Arisinfra Solutions, a tech-driven B2B platform in construction materials, is scheduled to open its IPO for bidding on Wednesday, June 18. It aims to raise ₹499.60 crore through a fresh issue, with a price band set between ₹210 and ₹222 per share.
- Also opening on Wednesday, June 18, is the Influx Healthtech IPO, which has an issue size of ₹58.57 crore, a price band of ₹91-₹96, and will close on June 20.
- In the coming week, Globe Civil Projects Ltd has set a price band of ₹67-₹71 per share for its ₹119 crore IPO, launching on June 24.
- Additionally, the Mayasheel Ventures Ltd IPO, with an issue size of ₹27.28 crore and a price band of ₹44-₹47, is scheduled to open on June 20 and close on June 24.
The Indian stock market saw a mix of strong individual performances driven by specific company news and broader sector trends.
Top Gainers:
Top Losers:
Beyond direct market movements, several broader economic and global factors influenced the Indian stock market.
- Crude Oil Dynamics: Brent crude prices rose by 0.53% to USD 73.62 per barrel. This rebound in oil prices followed US President Trump's call for evacuation from Tehran, indicating heightened geopolitical risk and concerns over potential supply disruptions. This poses a significant inflationary risk for India, which is a major net oil importer.
- Central Bank Watch: Global central bank actions and anticipated decisions were closely monitored. The US Federal Reserve's Federal Open Market Committee (FOMC) meeting, scheduled for June 17-18, was a key event, with markets keenly watching for any hints regarding potential interest rate cuts. In Asia, the Bank of Japan (BoJ) announced its decision to keep its benchmark interest rate steady at 0.5%.
- Broader Economic Landscape: India's underlying economic fundamentals continue to present a robust picture. India has emerged as the world's fourth-largest economy in 2025 and is projected to be the fastest-growing major economy globally, with real GDP growth forecasted at 6.3% to 6.8% in FY26. Retail inflation fell to 4.6% in FY25, its lowest since FY19. The Consumer Price Index (CPI) inflation eased to a 69-month low of 3.2% in April 2025, and the Wholesale Price Index (WPI) inflation also fell to a 13-month low of 0.9% in April 2025. However, the merchandise trade deficit increased to a six-month high of US$26.4 billion in April 2025.
As the market looks ahead to 18 June 2025, several factors will be closely monitored.
- Economic Data Releases: No major Indian economic data releases are explicitly scheduled for Wednesday, June 18, 2025. Globally, several key economic data releases are anticipated, including Central Bank Policy Rate decisions from Brazil, Indonesia, and the United Kingdom, alongside the conclusion of the crucial US Federal Reserve's FOMC meeting. Trade data for Japan, and inflation figures for the UK and the Euro area, will also be released. The United States will release housing market indicators and labor market data.
- Corporate Earnings: For June 18, 2025, KHFM Hospitality and Facility Management Services Limited has a board meeting scheduled to consider and approve its audited financial results for the year ended March 2025.
The Indian stock market demonstrated a cautious tone on June 17, 2025, with benchmark indices Sensex and Nifty registering declines. This was primarily driven by escalating geopolitical tensions in West Asia and sector-specific headwinds, particularly the US tariff threats on the pharmaceutical sector.
While technology stocks showed resilience, the broader market, including mid and small-caps, faced profit-booking. Domestic Institutional Investors (DIIs) continued to provide crucial support, absorbing selling pressure from Foreign Institutional Investors (FIIs), highlighting the growing strength of domestic capital.
Despite the short-term volatility, India's robust economic fundamentals, characterised by strong GDP growth and moderating inflation, offer a resilient long-term backdrop. Market participants will keenly watch global cues, especially the outcome of the US Federal Reserve's FOMC meeting, and ongoing geopolitical developments for the market's direction on June 18, 2025.