Market Overview
The Indian market exhibited a mixed sentiment, with notable gains in specific sectors such as IT, financials, and commodities like gold and silver, despite global geopolitical tensions and domestic challenges. The Sensex and Nifty showed resilience, with sectors like IT and financials leading the rally. However, concerns over US tariff impacts, high valuations in certain sectors, and global tensions capped the upside. Silver prices surged to a 13-year high, reflecting strong industrial demand and supply shortages. The market also saw robust appetite for IPOs, indicating investor confidence in new offerings.
Key Sectors in Focus
IT Services (UP)
The IT sector led the market rally, with significant contributions from TCS, Infosys, and Tech Mahindra. Strategic partnerships and deals bolstered investor confidence, underscoring the sector's resilience and growth potential.
Financial Services (UP)
The financial sector showed bullish signs, with HDFC Bank shares rising on a positive outlook and news of HDB Financial Services' IPO. Experts recommend buying attractively valued stocks in this sector, citing sustained retail and mutual fund inflows.
Automotive (DOWN)
The automotive sector faced challenges with Tata Motors' shares dropping due to JLR's revised margin forecasts amid US tariff uncertainties, highlighting sector-specific challenges.
Defence (MIXED)
Defence stocks experienced volatility with initial rallies followed by drops due to high valuation concerns, though structural improvements and a strong order pipeline offer long-term positives.
Commodities (UP)
Commodities are forecasted to have bullish trends, with gold and silver prices surging due to geopolitical tensions and strong industrial demand, indicating strong demand for safe-haven assets.
Stock Spotlight
| Company | Movement | Insight |
|---|---|---|
| HDFC Bank | 1% gain | HDFC Bank's shares rose due to positive sentiment around its subsidiary HDB Financial Services' planned IPO and a bullish 'Buy' recommendation from Jefferies, highlighting stable asset quality and recovery prospects. |
| TCS | 1.45% rise | TCS shares rose after announcing a strategic partnership with Salling Group to enhance sustainability and digital transformation across 2,100 stores. The deal covers cloud adoption and e-commerce platform improvements, targeting agility and scalability. |
| Biocon | 154% profit rise in FY25 Q4 | Biocon reports a 154% rise in profit to ₹344.5 Cr in FY25 Q4, planning a ₹4,500 Cr QIP to reduce debt. The company's strong performance and potential merger or IPO for its biosimilars arm make it a stock to watch. |
| Gold | 0.3% rise to $3,442.09/oz | Gold prices climb to a near two-month high amid escalating tensions between Israel and Iran, fueling demand for safe-haven assets. Analysts eye resistance at $3,500, with the Federal Reserve's policy decision in focus. |
| Sterlite Tech | 22% rise over three days | Sterlite Technologies surged due to its launch of AI-driven Data Centre solutions and a ₹2,631.14 crore contract with BSNL, capitalizing on the booming data centre market. |
Economic Indicators
Inflation
WPI inflation fell to 0.39% in May, the lowest since April 2024, driven by deflation in fuel and power.
Interest Rates
RBI has cut repo rates by 50 bps to 5.5% and CRR by 100 bps to 3%, aiming to inject liquidity and spur growth.
Gdp
India's economy shows signs of strength with a 7.6% growth in FY25's fourth quarter.
Other Relevant Indicators
India’s trade deficit shrank to $6.6 billion in May 2025, a 30% decrease from the previous year, driven by lower oil prices and robust services exports.
Global Market Influences
Global tensions, particularly between Israel and Iran, have heightened market volatility, affecting commodities like gold and oil, and influencing Indian market sentiment. The G7 Summit also added to the global market dynamics.
Commodity Trends
Gold (UP)
Gold prices surged towards a record high, driven by escalating Middle East tensions and a shift towards safe-haven assets, with a 30% rally this year.
Silver (UP)
Silver prices surged to a 13-year high, driven by industrial demand, supply shortages, and geopolitical tensions, with further upside potential if the gold-silver ratio normalizes.
Crude Oil (UP)
Crude oil prices jumped amid rising Iran-Israel tensions, reflecting heightened geopolitical risks and their impact on energy markets.
Expert Opinions
Experts remain cautiously optimistic, with bullish calls on specific stocks like HDFC Bank and UTI AMC, while cautioning about high valuations in sectors like defence. The market's stability is seen as contingent on geopolitical developments and crude oil price movements.
Market Outlook
Short-Term Projection
The market is expected to remain volatile with a positive bias, supported by strong sectoral performances and IPO activities, but tempered by geopolitical risks and valuation concerns in certain sectors.