Indian Stock Market June 2025: Nifty Hits 25,000, IPO Buzz Gains Momentum

The Indian stock market has once again taken center stage in global investment discussions as benchmark indices surge past key psychological levels. As of June 20, 2025, the Nifty 50 index reclaimed the coveted 25,000 mark for the first time, while Bank Nifty held steady amid minor consolidation.

Driven by strong buying in banking, auto, and PSU sectors, the Indian stock market is defying global headwinds such as geopolitical tensions and interest rate uncertainties. Meanwhile, the IPO market is thriving, especially in the SME segment, with several companies delivering stellar listing gains.

This comprehensive article explores the market’s latest movements, top-performing sectors, stock-specific trends, IPO performance, and expert outlook on what lies ahead.

Market Highlights: Nifty and Bank Nifty Trends

Nifty 50 Movement

On June 20, 2025, the Nifty 50 surged by approximately 0.8%, closing near 24,999, after briefly crossing the 25,000 level earlier in the session. This psychological level is a significant marker, not just technically but also sentimentally, indicating strong momentum among large-cap stocks.

• Support Levels: 24,700, followed by 24,450

• Resistance Levels: 25,200 and 25,400

The rally in Nifty was led by heavyweight stocks in sectors like finance, auto, infrastructure, and public enterprises.

Bank Nifty Movement

While Nifty celebrated a breakout, Bank Nifty consolidated, trading near 55,577 with a mild downside from the previous day. Despite some cooling off, analysts see the index in a healthy consolidation phase.

• Support Levels: 55,000 and 54,825

• Resistance Levels: 56,000 and 56,250

Bank Nifty is waiting for a stronger catalyst to propel it past the 56,000 level, and any sustained move in large private banks could ignite this breakout.

Key Drivers Behind Market Movement

1. RBI Policy Support for Infrastructure Lending

The Reserve Bank of India’s decision to ease provisioning norms on infrastructure lending has boosted sentiment in banking and financial stocks. These changes reduce capital requirements and improve profit margins for lenders involved in infrastructure financing.

Top beneficiaries:

• Power Finance Corporation (PFC): Up 4%

• Rural Electrification Corporation (REC): Up 3.5%

• PSU Bank Index: Up 0.8% in a single session

This regulatory support also gave indirect strength to infrastructure and capital goods stocks, building optimism for long-term growth.

2. Strong Domestic Participation

Domestic institutional investors (DIIs), including mutual funds, continue to absorb selling by foreign investors, reflecting the strength of India’s retail investing ecosystem. Robust SIP flows and increased direct participation are helping markets withstand external shocks.

3. Global Macro Trends

Despite Middle East tensions and US rate uncertainty, global markets are witnessing selective recovery. The US Federal Reserve has signaled a potential rate cut by late 2025, easing concerns over dollar liquidity and foreign capital flight from emerging markets like India.

Sectoral Performance Snapshot

Financials and Banking

The strongest performers of the day, financial and banking stocks, have gained from both domestic policy support and earnings visibility.

Top Gainers:

• State Bank of India

• Axis Bank

• Bank of Baroda

• HDFC Bank

• PFC & REC

With improved asset quality and high credit demand, the banking sector is set to remain in focus.

Auto and Ancillaries

The automobile sector continued its rally on the back of strong domestic sales, reduced input costs, and optimistic rural demand projections.

Leading Stocks:

• Mahindra & Mahindra

• Maruti Suzuki

• Eicher Motors

• Hero MotoCorp

Analysts expect these stocks to benefit from pre-festive seasonal demand and policy incentives.

PSU and Infrastructure

Public Sector Undertakings (PSUs) remain in the spotlight with consistent policy support and earnings upgrades.

Notable Moves:

• Bharat Electronics: Up 1.2% on Sensex inclusion

• NTPC, Coal India, and GAIL: Showing resilience in uncertain global commodity conditions

Underperforming Sectors

Despite the broad rally, some sectors lagged:

• IT Sector: Decline in new order inflows and weak global client budgets continue to weigh.

• Realty & Media: Post-rally profit booking led to corrections.

• Mid & Small Caps: High valuations and volatility caused cautious trading; small-cap index declined by 1.9%, mid-cap index by 1.6%.

Top Stock Performers and Laggards

Key Gainers:

• Bajaj Finserv: Gained over 1.5%

• M&M and Maruti: Up 1–1.3%

• UltraTech Cement: Boosted by demand growth

• Axis Bank: Continued institutional buying

• PFC & REC: 3–4% on RBI policy impact

Key Losers:

• IndusInd Bank: Dropped after being excluded from Sensex

• Sun TV: Declined by 4.2% amid promoter legal battles

• Zee Entertainment & TV18: Pulled down by weak ad revenue forecasts

Technical and Derivatives Outlook

Technical Indicators:

• Nifty RSI (Relative Strength Index): Near 51, indicating neutrality

• MACD (Moving Average Convergence Divergence): Mildly bullish crossover

• Candlestick Pattern: Doji formation indicates hesitation near resistance

Options Data:

• Call writers are active at 25,000–25,200 levels

• Put writers are concentrated at 24,700–24,800

• This indicates a range-bound bias until a breakout occurs

Experts believe that a close above 25,200 could trigger another leg of the rally, while any dip below 24,700 may lead to broader consolidation.

IPO Landscape: Listings, Subscription, and Buzz

SME IPOs Shine

The SME IPO segment has become a hotbed of activity. June 2025 has already seen several high-performing listings.

These companies are benefitting from high retail participation and oversubscription in bidding rounds.

Oswal Pumps IPO

Listed today on NSE SME, Oswal Pumps delivered a listing gain of 6–7%, matching grey market premium expectations. The stock opened higher but traded flat due to broader mid-cap volatility.

Upcoming Mainboard IPOs

The coming weeks promise several large IPOs:

• HDB Financial Services – Expected to raise over ₹11,000 crore

• NSDL (National Securities Depository Limited) – ~₹3,000 crore issue

• Avanse Financial Services – ₹3,500 crore

• Travel Food Services – ₹2,000 crore

These IPOs are anticipated to attract heavy institutional demand, with most companies in robust growth segments like financial services and logistics.

Broader Market Context: Correction and Recovery

Market Correction (Sept 2024 – Feb 2025)

The Indian equity market witnessed a sharp correction last year:

• Sensex fell by 11.8%

• Nifty by 12.4%
  This was due to a combination of:

• Rising global interest rates

• Middle East tensions

• Weak earnings in Q2 FY25

• Over ₹61,000 crore in FII outflows

Recovery Phase (March 2025 Onwards)

Since March 2025, markets have staged a consistent recovery:

• Sensex up 7%

• Nifty up 6.2%

Key drivers include:

• RBI maintaining an accommodative stance

• Strong earnings in banks and autos

• Steady SIP inflows and retail participation

• Renewed FII interest due to improving global outlook

Expert Opinions and Strategy

Market analysts remain cautiously optimistic:

• For Short-Term Traders: Watch for confirmation above 25,200 for Nifty and 56,000 for Bank Nifty before taking aggressive long positions.

• For Long-Term Investors: Focus on sectors with policy support (banking, auto, infrastructure).

• For IPO Investors: Stick to fundamentally strong IPOs; avoid overvalued SME listings without institutional backing.

• Risk Factors: Global geopolitical shifts, commodity price volatility, and valuation fatigue remain key risks.

What to Watch Next

1. Nifty’s Sustained Break Above 25,000: Can it hold? Watch for volume confirmation.

2. Bank Nifty’s Breakout Potential: A move above 56,000 could energize financial stocks.

3. Upcoming IPO Subscription Trends: Particularly for HDB Financial and NSDL.

4. Global Macro News: Any Fed movement, oil price changes, or US job data can trigger volatility.

5. FII vs DII Trends: Who dominates net flows in the final week of June?

For live updates, corporate filings, and investor resources, visit:
👉 https://www.nseindia.com

Conclusion

June 2025 marks a turning point in the Indian stock market as it enters a phase of renewed optimism backed by macroeconomic stability, policy clarity, and vibrant investor activity. With Nifty 50 breaching 25,000, Bank Nifty stabilizing, and IPOs seeing strong traction, the sentiment remains bullish — but not without caution.

For investors, this is a time to remain selective, focus on quality, and keep risk in check while making the most of a maturing bull cycle.

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