Sensex, Nifty End Flat as Profit-Taking Caps Early Gains; Mutual Fund Trends Reflect Gradual Risk Recalibration

Indian benchmark indices ended Monday’s session largely unchanged, with the market showing signs of a continued consolidation phase. The Sensex slipped 53.49 points to close at 82,391.72, while the Nifty 50 settled flat at 25,104.25. Early morning gains, driven by positive global cues, fizzled out as profit-booking in banking, financial, and real estate stocks weighed on sentiment. Despite the muted headline move, the broader market remained constructive, with 2,184 stocks advancing versus 1,813 declining on the BSE.

Liquidity, Monsoon, and Trade Optimism Support Underlying Sentiment

Investors continue to find comfort in strong domestic tailwinds. These include a healthy Q4 earnings season, supportive liquidity measures from the RBI, an optimistic monsoon forecast, and improving foreign trade relations, with talks of a possible new US-India trade deal. Inflows remain robust, with FPIs net buyers at ₹1,992.87 crore and DIIs adding ₹3,503.79 crore on June 9. Options data indicates bullish undercurrents, supported by aggressive put writing and a Put-Call Ratio of 0.94. Meanwhile, the India VIX held near 14, pointing to reduced market volatility and stable risk appetite.

However, global headwinds - particularly inflationary pressures and geopolitical concerns - continue to linger, tempering risk-on sentiment ahead of key macroeconomic prints due this week.

Mutual Fund Trends Reflect Gradual Risk Recalibration

Data from AMFI for May 2025 revealed nuanced shifts in retail investing behavior. While equity fund inflows dipped 22% MoM to ₹19,013 crore, this marked the 51st consecutive month of positive inflows, underlining consistent retail participation through SIPs, which crossed ₹26,000 crore for the month. The drop was largely attributed to profit-taking and elevated valuations.

Investors appeared to recalibrate risk, paring down large-cap allocations, while maintaining interest in mid and small-cap funds, albeit selectively. Notably, small-cap funds attracted ₹3,214.21 crore, up 18% year-on-year. Hybrid funds - especially arbitrage, balanced advantage, and multi-asset strategies - saw a 46% rise in net inflows, as investors turned to dynamic asset allocation to navigate volatility. Meanwhile, debt funds saw outflows of ₹16,000 crore, likely due to quarter-end treasury adjustments and RBI rate policy expectations. The industry’s AUM touched a new high of ₹72.2 lakh crore, with projections eyeing the ₹100 lakh crore milestone in the medium term.

Corporate Developments and Commodity Moves

Among corporate movers, Muthoot Finance hit a historic milestone, becoming the first Kerala-listed firm to surpass ₹1 lakh crore in market capitalisation. HDFC Life and Ageas Federal Life announced record policyholder bonuses. Mangal Electrical Industries and Oswal Pumps secured SEBI approval for IPOs, while Jindal SAW revealed plans for a $118 million manufacturing expansion in the Gulf. Shares of Suzlon Energy rose after promoters sold a 1.45% stake via block deals, raising ₹1,309 crore. Reliance Power and Reliance Infra touched 52-week highs.

In commodities, gold prices edged lower, even as central banks continued buying, led by China’s seventh consecutive month of accumulation. Silver, however, soared to a 13-year high near $37 per ounce (~₹107,000), driven by safe-haven demand and robust industrial use, particularly in the solar sector. The Silver Institute noted a 15% global supply deficit in 2024, with expectations of another shortfall this year. Crude oil prices also firmed up, ahead of anticipated developments in US-China trade negotiations.

What’s Ahead

Markets will turn their attention to macro triggers in the coming days, notably India’s CPI and IIP data on June 11 and 13, and the US CPI report due tomorrow, that is Wednesday. 

At the halfway mark, Indian benchmark indices were trading in positive territory, though within a narrow range. The Nifty 50 was up 0.16%, or 40.65 points, at 25,143.85, while the Sensex edged higher by 41.49 points, or 0.05%, to 82,486.70. The Nifty has largely oscillated between the 25,100 and 25,120 range for most of the session, reflecting a cautious mood in the market.

After hitting a record high on Monday, the Nifty Bank index saw some profit booking and slipped 213.70 points, or 0.38%, to 56,625.90 in Tuesday’s session.

Markets had opened on a positive note, in line with global cues. The Nifty opened at 25,196.05, well above Monday’s close of 25,103.20, but remains around 1,081 points below its all-time high of 26,277.35. The Sensex also opened in the green at 82,643.73, up from its previous close of 82,445.21. Meanwhile, Nifty Bank began the session strong at 56,993.90 before losing momentum.

In stock-specific action, Protean eGov Technologies surged 4.5% after securing ₹100 crore from Bharat Special Investment Fund (BSIF). Jindal Saw Ltd jumped as much as 10% following the announcement of new capital expenditure plans across the Middle East.

The Nifty Midcap 100 index also posted modest gains, rising 0.18%. Notable movers included Premier Energies (+4.40%), Persistent Systems (+3.84%), and Adani Total Gas (+3.58%).

Here are the top gainers and losers of the benchmark index, Nifty50, as of mid-day trade:

Top 5 Gainers in the Market

Grasim (GRASIM)

• Opening Price: ₹ 2710
• Current Price: ₹ 2715.80
• Change: +4.11%

Grasim gained  a bullish upgrade by Morgan Stanley, which highlighted strong market share gains in its paints business and multiple positive triggers across its portfolio.

Tech Mahindra (TECHM)

• Opening Price: ₹1579.10  
• Current Price: ₹  1627.30
• Change: +3.05%

Tech Mahindra is gaining attention  as its President for the Americas strategic vertical business announced retirement, raising investor focus on the company’s leadership transition and potential impact on its US operations.

Adani Enterprises(ADANIENT) 

• Opening Price: ₹2600
• Current Price: ₹ 2640
• Change: +2.24%

Adani Enterprises is seeing positive movement today due to investor interest ahead of the upcoming final dividend record date, which is encouraging buying activity in the stock.

INFOSYS (INFY)

• Opening Price: ₹1584 
• Current Price: ₹ 1604.90
• Change: +2.03%

Infosys saw a rise in its stock price due to positive investor sentiment and steady demand for IT services. The company's strong business outlook and ongoing digital transformation projects have supported buying interest. Additionally, the broader technology sector's favorable trend contributed to the stock's gains

HCL Technology(HCL TECHNOLOGY) 

• Opening Price: ₹ 1653.30
• Current Price: ₹  16880.80
• Change: +1.97%

HCL Technologies experienced gains , driven by positive momentum in the IT sector amid easing trade tensions between the U.S. and China. The stock saw a rise, reflecting an optimistic trend among IT shares. HCL Tech's stock performance is part of a broader rally in the IT sector.

Top 5 Losers in the Market

Trent (TRENT)

• Opening Price: ₹ 5929
• Current Price: ₹ 5841.50
• Change: -1.22%

Trent is facing selling pressure  due to concerns over slower same-store sales growth and margin pressure from higher discounts and a larger share of value fashion in its revenue mix, despite strong store expansion and overall revenue growth

Eternal(ETERNAL)

• Opening Price: ₹256.80
• Current Price: ₹253.77
• Change: -1.20%

Eternal is experiencing weakness  as investor worries grow over increased competition from Rapido’s possible move into the food delivery sector.

ICICI Bank (ICICIBANK)

• Opening Price: ₹ 1439
• Current Price: ₹ 1420.10
• Change: -1.02%

ICICI Bank is facing pressure  as investors take profits after recent rallies and react to the bank’s decision to lower fixed deposit rates following the RBI’s monetary easing.

SBI Life (SBILIFE)

• Opening Price: ₹1790.90  
• Current Price: ₹ 1774.50
• Change: -0.91%

SBI Life Insurance is witnessing weakness  as investors book profits following a strong rally and remain cautious about the stock’s current valuation levels.

 HDFC Bank (HDFCBANK)

• Opening Price: ₹1982.80
• Current Price: ₹ 1963.40
• Change: -0.78%

HDFC Bank is seeing profit-booking after a recent rally despite strong sector trends. An FIR the CEO Sashidhar Jagdishan over allegations by Lilavati Medical Trust has been denied by the bank. Analysts remain positive, with most recommending a buy and a target above ₹2,160. The bank’s financials stay strong amid the controversy.

The Sensex surged 256 points to close at 82,445, while the Nifty 50 gained 100 points to finish at 25,103.20, marking an eight-month high yesterday. Broad-based buying was seen across sectors such as PSU Banks, IT, oil & gas, and power, with the Bank Nifty hitting a record intraday high above 57,000. 

As of  9:40 AM today,  the Sensex was trading higher at 82,473.09, up 0.03%, while the Nifty rose 0.49% to 25,225.85.

Indian Stocks Gain Amid Strong Sectoral Buying and Positive Global Sentiment

The Indian stock market opened on a positive note with the Nifty 50 trading above 25,100 and the Sensex rising over 250 points to around 82,445. Buying across the board was witnessed in sectors such as PSU Banks, IT, oil & gas, and power, while real estate trailed. The Bank Nifty touched an all-time high above 57,000. The rest of the world saw Asian markets rally in the hope of the continuation of US-China trade negotiations in London, with Japan's Nikkei rising 0.5% and South Korea's Kospi increasing 0.3%. US markets closed mixed but stable, holding out for more news on trade talks. Institutional buyers kept on purchasing, propelling market strength in the face of favourable global sentiments.

Wall Street Inches Higher on Optimism From US-China Trade Talks and Solid Tech Earnings

Wall Street closed mixed but largely flat as investors continued to remain cautiously optimistic in the wake of US-China trade talks in London. The S&P 500 crawled higher by 0.09% to 6,005.88 and the Nasdaq gained 0.31% to 19,591.24, but the Dow Jones Industrial Average closed almost level, down marginally by 1.11 points at 42,761.76. Market sentiment was boosted by healthy earnings from blue-chip technology giants such as Amazon and Alphabet, while investors continued to look for more clarity on trade talks. Futures trading on June 10 remained essentially unchanged as traders waited to see important releases of inflation data later in the week. In general, optimism regarding advancements in trade negotiations helped prop up the recent rally in spite of some caution.

Gold Prices Demonstrate Weakness in the Face of Global Uncertainty and Recent Fall

Indian gold price has some weakness following a recent steep fall. The MCX 24-carat gold price is around ₹97,170 for 10 grams, just below the crucial resistance of ₹98,000. The prices of 24-carat gold have declined by around ₹19,100 per 100 grams in the last three days. The 22-carat price of gold is below ₹90,000 for 10 grams. Across the world, gold futures are at $3,325 per ounce, down 0.88% from the last close. The market for gold is still weak, with global trade talks ongoing and economic uncertainty, with support prevailing around current levels unless significant changes emerge.

Oil Markets Gain Momentum Amid Positive Global Trade Developments

Brent crude is at $67.38 per barrel, a minor 0.5% gain from yesterday's close. The day's range so far is between $67.05 and $67.38. This is happening in the middle of US-China trade negotiations that have encouraged market sentiment. West Texas Intermediate (WTI) crude also remains above $65 per barrel, with steady demand in place in spite of Middle East and Ukrainian geopolitical tensions. Overall, crude oil prices are underpinned by supportive trade sentiment and supply issues in major regions.

Dollar Remains Firm Against Rupee in Early  Trades

The USD to INR exchange rate is around ₹85.7 for the interbank rate. The buy rate is about ₹85.91, and the sell rate is around ₹85.30. The remittance rate is near ₹86.27, indicating a comparatively stable dollar versus the Indian rupee in prevailing global economic scenarios.

Stocks in Focus

• Premier Energies: South Asia Growth Fund II Holdings plans to sell 2.5 crore shares (5.5% stake) via block deals at a cut-off price of ₹1,051.50 per share.
  
  
• Wipro / Azim Premji Trust: The Azim Premji Trust executed a block deal of 20.23 crore Wipro shares, worth ₹5,057 crore, altering the promoter shareholding structure.
  
  
• Capri Global Capital: Launched its QIP on June 9 at a floor price of ₹153.93 per share, aiming to raise up to ₹2,000 crore with a ₹500 crore upsize option.
  
  
• Mahindra & Mahindra: Increased its stake in MMFSL by subscribing to its rights issue, strengthening its position in the NBFC subsidiary.
  
  
• Apollo Pipes: Acquired an additional 1.01% stake in subsidiary Kisan Mouldings Limited via a secondary market deal.
  
  
• Jana Small Finance Bank: Applied to the RBI to convert into a universal bank, signalling a strategic shift in its business model.
  
  
• IRB Infrastructure: Reported 8.5% YoY toll revenue growth in May to ₹581.2 crore; another source estimates 9% growth to ₹581 crore.
  
  
• Protean eGov Technologies: Won a ₹100 crore work order from BSIF to develop and manage the Bima Sugam digital insurance marketplace.
  
  
• ITD Cementation India: Secured an ₹893 crore contract to build a berth and breakwater as part of a greenfield jetty project in Odisha.
  
  
• Tata Power (TP Solar): Reached 4 GW in solar module production capacity at its Tirunelveli facility, marking a key milestone.
  
  
• AstraZeneca Pharma India: MD Sanjeev Kumar Panchal resigns, effective June 30, to take an international role; Praveen Rao Akkinepally to assume the role from July 1.
  
  

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