Indian stock market stays strong as Sensex hovers near 84,000 and Nifty holds above 25,500
The Indian stock market enters the final trading session of June on a cautious note. After a strong rally in recent weeks, investors show signs of taking profits while still holding on to a sense of optimism. The main market indices, Sensex and Nifty, trade close to their record highs. However, market momentum appears mixed as different sectors show different trends.
Sensex and Nifty Hover Near Record Levels
The Sensex opens the day near 84,000, while the Nifty 50 moves around 25,550 to 25,600. Both indices had hit record highs last week, boosted by strong global cues and continued foreign investment. On the previous trading day, the Sensex closed with a gain of over 300 points, and the Nifty ended around 25,638. The markets hold steady at these levels, but investors begin to take profits in certain stocks, especially in the financial and auto sectors.
Despite this slight pullback, overall sentiment remains positive. Investors wait to see whether the market can hold these levels and build on the recent rally or whether more profit booking will drag prices lower in the days ahead.
PSU Banks Shine, While Auto and Financial Stocks Pull Back
Public sector bank stocks lead the gains in today’s session. The index tracking PSU banks rises more than 2% as investors show confidence in the sector. Factors like rising credit demand, clean balance sheets, and government support help boost buying interest in these stocks.
On the other hand, auto and financial stocks face pressure. Some of the major lenders, including HDFC Bank and Kotak Mahindra Bank, trade lower. Auto companies like Hero MotoCorp and Bajaj Auto also see selling pressure. Investors seem to be locking in profits in these stocks after their recent gains. The weakness in these sectors limits the broader market’s upside.
Midcap and Smallcap Stocks Stay Strong
While large-cap stocks pause, mid-cap and small-cap stocks continue to attract buyers. These indices post modest gains, rising between 0.3% and 0.5%. The steady climb in this segment extends for the seventh straight day. Investors show strong interest in companies from infrastructure, real estate, and specialty manufacturing.
The strength in midcap and smallcap stocks suggests that market participation is broad-based. This is a good sign for the overall market, as it shows that not only are a few large stocks performing well.
Foreign Investors Continue to Buy
Foreign institutional investors continue to show strong interest in Indian equities. Large amounts of foreign money have come into Indian markets this month. A key reason behind this trend is the easing of global tensions, particularly in the Middle East. Investors around the world are feeling more confident about emerging markets like India.
Also, expectations that the US Federal Reserve might cut interest rates later this year are improving global investment sentiment. Lower rates in developed countries often lead to more capital flowing into high-growth markets such as India.
Big Corporate Updates Draw Investor Attention
Several corporate developments shape investor interest today. Adani Enterprises announces plans to raise ₹1,000 crore through a public bond sale. This move aims to boost funding for expansion while offering retail investors a new investment option. The issue receives a good credit rating and includes a greenshoe option, allowing additional fundraising if demand is high.
In the pharma space, Alembic Pharmaceuticals sees its stock surge by over 9%. This jump follows news that the company has received USFDA approval for a new cancer treatment drug. Positive news from the US health regulator often helps Indian pharma companies, as the US remains a key market.
Engineering firm ITD Cementation gains nearly 4% after winning a large marine project worth around $67 million. This deal adds to the company’s growing order book. Meanwhile, BHEL also rises in early trade after receiving new orders in the power sector.
Technical Charts Show Support and Resistance Levels
Market experts are closely watching technical levels on the Nifty and Bank Nifty. For the Nifty 50 index, analysts see strong support between 25,300 and 25,500. On the upside, resistance is expected near 25,850 to 26,000. If Nifty stays above the 25,500 level, it may continue to rise. But a break below 25,300 could lead to a deeper pullback.
For the Bank Nifty, the key support lies around 56,500 to 57,000, while resistance may emerge between 57,800 and 58,200. These levels are important as they help traders make decisions on entering or exiting positions.
Trading Strategies for the Week Ahead
Stock analysts share some ideas for the coming days. Federal Bank and Prince Pipes receive positive reviews based on strong financial results and favorable technical charts. Indraprastha Gas and Nestlé India are also on analysts’ watchlists. These stocks may perform well in the short term, especially if the broader market remains stable.
Traders are advised to stay selective and focus on quality stocks with good earnings visibility. The market has already rallied a lot, so a careful approach becomes more important now.
Concerns Linger Despite Positive Sentiment
Even though overall sentiment remains supportive, certain risks continue to hover. In the auto sector, rising inventory levels are becoming a concern. Sales have slowed in some regions, and companies may face pressure to offer discounts, which can hurt profits.
On the global front, worries about new tariffs or trade tensions can affect companies that rely on exports. Investors are also keeping an eye on oil prices, currency movements, and inflation data to understand the market’s next move.
Outlook: Pause or Push Higher?
Today’s trading session shows signs of a pause after a strong uptrend. The main indices stay close to their all-time highs, which reflects underlying market strength. However, selective selling and rotation across sectors show that investors are being cautious.
The Nifty continues to find support near the 25,500 level. As long as this support holds, the index may try to move higher toward the 26,000 mark. If broader participation from midcaps and PSU banks continues, it could help the rally gain more strength.
Still, with valuations running high and global cues mixed, the market may prefer to move sideways for some time. Traders and investors now look to July’s economic data and earnings season for fresh direction.
A Balanced Day With Stock-Specific Action
The Indian stock market closes out June with a session that reflects both strength and caution. While the main indices hold firm near record highs, investors turn selective and start booking profits in some sectors. Public sector banks and midcaps shine, while auto and financials take a backseat.
Foreign flows and positive sentiment continue to support the overall structure. At the same time, technical charts suggest a range-bound trade in the short term. The market remains healthy, but the pace of gains may slow as investors wait for the next set of cues.
