In the meantime, the Nifty Mid-cap index saw a 4.1% increase during the month and a 5.6% return over the previous 12 months.
Delhi, New Delhi: Supported by strong domestic macroeconomic indicators and a steady improvement in investor morale, Indian shares held steady in June despite mid-month volatility brought on by geopolitical concerns, a report released on Tuesday stated.
“The Nifty 50 increased 3.1% throughout the month, maintaining its lead with a return of 6.3% over a 12-month period. According to PL Asset Management’s latest research, “the Small-cap 250 index led the monthly performance with a 5.73 percent rise and delivered 4% yearly returns, suggesting a restored investor demand for larger market segments.”
In the meantime, the Nifty Mid-cap index saw a 4.1% increase during the month and a 5.6% return over the previous 12 months.
The research claims that stronger breadth across industries and robust economic fundamentals underpinned the overall momentum. Investor confidence was also restored at the same time by a worldwide stock market recovery propelled by ceasefire.
According to the research, cyclicals led outperformances for the month.
Healthcare (15.01 percent), Defense (21.78 percent), and Finance (14.3 percent) were the top annual performers, while Digital (5.42 percent), Infrastructure (4.89 percent), and Tourism (4.38 percent) shone out in June.
The research said that strong improvements were also seen in banking and IT, which were bolstered by tailwinds from digital transformation and a rebound in credit demand.
Strong tax receipts and capital expenditures supported economic stability, while June data supported the current trend of disinflation. Siddharth Vora, Head of Quant Investment Strategies and Fund Manager at PL Asset Management, stated that external headwinds like erratic FII flows, uncertainties surrounding tariffs, and monsoon results are still important factors to keep an eye on in H2CY25.
Since late March 2025, market sentiment has begun to significantly improve, with an increasing proportion of equities trading nearer their 52-week highs than lows.
An early indication of improving market breadth and possible reversal or consolidation, the report said, is the rising Nifty500 Equal Weight vs. Nifty500 1-year rolling return spread, which is rising off a cyclical low and supports this shift, which indicates a broad-based improvement in participation.
