Market Performance
Indian stock markets witnessed a muted session on June 19, with frontline indices closing nearly flat as weak global signals and rising geopolitical tensions dulled investor appetite.
- Sensex ended 82.79 points lower or 0.10% at 81,361.87
- Nifty 50 fell 18.80 points or 0.08% to close at 24,793.25
- Nifty Midcap 100 and Nifty Smallcap indices lost nearly 2% each
The market remained rangebound throughout the session, mirroring the lack of fresh domestic triggers and global uncertainty.
Main News: Fed Signals Hawkish Stance, Geopolitical Tensions Escalate
The US Federal Reserve maintained its policy rate for the fourth straight time but issued a warning over inflation risks linked to potential trade policies by former President Donald Trump.
Key Fed Announcements:
- PCE inflation forecast for 2025 revised to 3.0% (from 2.7%)
- GDP growth forecast for 2025 reduced to 1.4% (from 1.7%)
- The slower pace of rate cuts anticipated—only two cuts projected in 2025
On the global front, rising tensions between Iran and Israel weighed heavily on investor sentiment.
- 25 missiles launched by Iran targeted Israel
- Reports indicate damage to the Israeli Stock Exchange building
- Trump hinted at possible military action on Iran's nuclear sites
- Iran responded with threats of "irreparable damage" if attacked
Company Details: Sector-Wise Market Performance
Sectoral Losers:
- PSU Banks: Worst-hit sector with a 2% drop in the Nifty PSU Bank index
- Media: Nifty Media index declined 1.78%
- Realty: Nifty Realty index fell 1.55%
- Metals: Nifty Metal index lost 1.21%
- IT: The Nifty IT index slipped 0.96% due to the Fed's hawkish tone
Sectoral Gainer:
- Auto Sector: The only gainer of the day, the Nifty Auto index rose 0.50%
Notable Gainers (Nifty Constituents):
- Tata Consumer
- Eicher Motors
- M&M
- Wipro
- Dr. Reddy's Laboratories
Major Losers:
Domestic Economic Indicators Show Signs of Strain
Early signs of slower income growth in the Indian economy are becoming visible.
- Advance tax collections for FY26 (as of June 15): ₹1.54 trillion
- YoY growth: Only 4%, compared to 27% growth last year
- Primary cause: Weaker personal income tax payments
Summary of the Article
On June 19, the Indian stock market remained subdued, with Sensex and Nifty closing slightly lower, while mid and small-cap stocks bore the brunt of the sell-off. The cautious stance of the US Federal Reserve, driven by fears over inflation and mounting geopolitical risks—especially the Israel-Iran conflict—contributed to dampened investor sentiment.
Back home, weaker advance tax collections signaled early signs of economic moderation. Sector-wise, all major indices closed in the red except for the auto sector, which emerged as the sole positive performer.
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