Indian Markets Stay Strong in June Despite Global Tensions

New Delhi, July 22 : Indian stock markets showed strength in June 2025, even with some mid-month volatility caused by global tensions. A new report by PL Asset Management credits this resilience to solid domestic economic data and improving investor confidence.

The Nifty 50 index rose 3.1% in June and posted a 6.3% return over the past 12 months. The Nifty Small-cap 250 led the month with a 5.73% gain, reflecting renewed interest in smaller companies. It delivered a 4% return over the year.

The Nifty Mid-cap index also performed well, rising 4.1% in June and 5.6% over the last year.

According to the report, strong economic fundamentals, sector-wide participation, and a global market rebound—helped by ceasefire news—boosted investor sentiment.

Among sectors, cyclicals led the gains in June.

• Digital: +5.42%

• Infrastructure: +4.89%

• Tourism: +4.38%

Over the past year, the top-performing sectors were:

• Defence: +21.78%

• Healthcare: +15.01%

• Finance: +14.3%

Banking and IT also saw solid gains, driven by rising demand for credit and growth in digital transformation.

Siddharth Vora, Head of Quant Strategies at PL Asset Management, said June data showed a continued fall in inflation. Strong tax revenue and government spending also supported macroeconomic stability. However, he cautioned that foreign investor flows, tariff issues, and monsoon patterns are risks to watch in the second half of 2025.

The report also noted a rise in overall market participation since late March, with more stocks moving closer to their 52-week highs.

This trend is supported by an improving Nifty500 Equal Weight vs Nifty500 performance spread—a sign that broader market strength may continue in the coming months.