Market Victory in June; Q1 Earnings & Judgement Day at the Door

The month of June witnessed one more chapter unfolded in the book of war. In the Middle east, two nations got engaged in the act of a missile attack. Israel attacked Iran to destroy its nuclear sites, the latter retaliated with force against the enemy nation. Eventually, the mediation for the ceasefire by the U.S. contained the geo-political tensions between Israel and Iran.

However, the Indian stock market stood with resilience as the benchmark indices, Nifty and Sensex touched their 9-month high levels in June. Amid the high volatility so far this year, Nifty and Sensex delivered monthly gains for the fourth consecutive month, adding 3.1% and 2.7% respectively in June. The 50-stock index Nifty added 8% in the first half of 2025, trading only a few percent lower from its September 2024 peak level.

On the other hand, strong balance sheet and renewed credit optimism led the Nifty Bank index to hit record-high of above 57,400 levels. Quite a good month for the market investors and a reminder for investors still waiting for a dip.

Sectoral Peers

Among the sectoral indices, small cap dominated with nearly 7% gain, while the other domestically focussed index Mid cap delivered 4% gain. IT, Healthcare and Infrastructure indices also clocked more than 4% gains.

The surprising interest rate cut of 100 basis points or 1% along with a few flexible norms by the Reserve Bank of India led the banking stocks to rise further. PSU Banks delivered the monthly gain of 3.3% followed by 2.5% gain in Nifty Private Bank index. The Nifty Finance index also rose 2.6%.

Other indices such as Realty and Metal rose more than 3% and auto gained 2.3%, however FMCG index stood muted and delivered a marginal loss of 0.7% in June.

This rally was propelled on the back of continuous strong buying by the domestic stakeholders. While foreign institutional investors (FIIs) remained net sellers in 2025 so far, the domestic institutional investors (DIIs) poured over Rs 3 lakh crore in 2025 so far.

Among DIIs, mutual funds have been the frontrunners, accounting for nearly Rs 2 lakh crore in net equity purchases so far in 2025. While the growth of mutual fund remains strong and SIPs recorded at all-time high, it’s a high time to plan your goal-based financial journey with MINTIT.

IPO Showers

The momentum for the initial public offerings (IPOs) remained muted in the first half of 2025. The first half saw 99 IPOs listed in the mainboard and SME exchanges compared to 147 listings in 2024 for the same period.

However, June demonstrated high activity in the IPO listing and IPO filings by several companies like Meesho, Phonepe, Hero Motors, Wakefit, Pine Labs, Omnitech Engineering etc.

June saw 8 main board IPOs going live for the public subscription including one of the largest NBFC IPOs of HDB Financial Services which aimed to raise Rs 12,500 crore received bids worth over Rs 1.6 lakh crore. Other IPOs of Ellenbarrie Industrial Gases Ltd, Globe Civil Projects, Kalpataru, Sambhav Steels and Indogulf Cropsciences Ltd also saw a healthy subscription from the investors.

IPOs are considered as speculative bets; hence investors must do their own due diligence and consider their financial risk profile. You can also sign up for MINTIT to get your risk profiling done and refer to the educational library to learn more about speculative bets.

July Triggers for Market

The release for the first quarter earnings of FY 25-26 season is awaiting in July and anticipated to have a positive tone, as robust domestic demand, stable margins, and particular sector outperformance are expected to strengthen investor sentiment. Strong earnings performance might serve as a trigger for additional growth.

On the nervous side, the approaching deadline for tariff extension is a crucial event for the market. A status quo or positive or neutral result (i.e., absence of negative surprises) can be perceived as an opportunity by the market, further reducing uncertainty and increasing risk appetite.

MINTIT’s Outlook for July

The Indian stock market in July 2025 looks promising for investors, even after some recent price drops. The market is stable because foreign investors (FIIs) are not heavily involved in trading, which lowers the chance of big ups and downs. At the same time Indian investors are putting in fresh money supported by regular investments through Systematic Investment Plans (SIPs) in Mutual Funds. This keeps the market steady. There’s also less borrowing for trading, which means there’s room for the market to grow further.

Sectors to focus on:

Mutual fund investors should focus on the following sectors for the July 2025 results season, as they are well-positioned for growth.

Information Technology (IT): TCS, Infosys, HCL Tech, Tech Mahindra, Persistent Systems, Coforge, Mphasis, KPIT Technologies, Cigniti Technologies.

Banking and Financial Services: HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finance, Bajaj Finserv, Cholamandalam Investment & Finance, Poonawalla Fincorp, IDFC Bank, HDFC AMC.

Cement: UltraTech Cement, J.K. Cement.

Consumer Goods (FMCG): Nestle India, Dabur India, P&G Hygiene & Health Care, Emami, United Breweries, Gillette India, Asian Paints, TTK Prestige.

To get better returns with lower risk over the long term, always spread your investments across different types of companies. This means putting money into large-cap, mid-cap, and small-cap funds. Large-cap funds are safer, mid-cap funds offer growth with moderate risk, and small-cap funds can grow fast but are riskier. Choosing the right mix depends on how much risk you’re comfortable with. By balancing your investments this way, you can achieve your financial goals more effectively.

For those waiting for a market dip, now is an ideal time to invest. Despite high valuations, India’s stable macros and long-term growth potential favour diversified, long-term investing over chasing short-term events. Stay focused on quality stocks in growing sectors to build lasting wealth.

Market volatility is an inherent characteristic of equity markets, reacting impulsively to these fluctuations may indicate a need to reassess whether equity investing aligns with your financial goals and risk tolerance. While the market’s behaviour cannot be tailored to individual preferences, your investment strategy can be customized to suit your specific needs and circumstances.

MINTIT, only dedicated Mutual Funds Platform, caters to your personalised goals and accompanies you to achieve your financial milestones. Depending on your profile it precisely suggests tailored investing plans to achieve your goals with the help of trusted financial advisors.