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Assalamu Alaykum,
Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the India from June. Let’s get started.
Stock market updates
Indian markets showed strong growth in June, with the BSE SENSEX climbing 2.74% to close at ₹83,606.46 and posting a 6.49% gain year-to-date. The NIFTY 50 outperformed with a 3.24% monthly increase, reaching ₹25,517.05 and achieving an impressive 7.47% YTD return.
Zydus Wellness witnessed 46.27 lakh shares—7.3% of its equity—change hands at ₹1,900 apiece in a ₹879 crore block deal on June 17, though parties involved remain undisclosed. The transaction follows a strong Q4 performance, with net profit up 15% to ₹172 crore and revenue rising 17% to ₹913 crore, alongside a margin expansion to 20.8%. The company also announced its first-ever stock split (1:5) and a ₹6 per share final dividend, boosting investor sentiment.
JSPL will rename itself ‘Jindal Steel Limited’ to better reflect its core steel manufacturing focus, pending shareholder and regulatory approval. Despite higher production and sales volumes, the company reported a consolidated Q4 loss of ₹304 crore, down from a ₹933 crore profit last year, with revenue dipping slightly to ₹15,525 crore. The board also proposed a ₹2 per share final dividend, signaling continued shareholder returns despite near-term financial pressure.
Promoter Samayat Services LLP plans to sell a 10% stake in Vishal Mega Mart through block deals, valuing the transaction at ₹5,057 crore with a floor price of ₹110 per share. The move follows a strong Q4 performance, where net profit surged 88% YoY to ₹115.1 crore and revenue rose 23.2% to ₹2,547.9 crore, with EBITDA margins improving to 14%. Operating 668 stores across India, the retailer continues targeting value-conscious consumers across apparel, FMCG, and general merchandise categories.
Inox India announced it has won ₹373 crore worth of orders across segments like cryo-scientific solutions, industrial gas, LNG, and beverage kegs in FY26 so far, with ₹151 crore coming from cryo-scientific deals alone. The company continues to expand its cryogenic solutions portfolio, especially for clean energy, reinforcing its global position in critical storage and transport technologies. Following the update, shares rose 0.6% to ₹1,190.4, extending an 8% gain in 2025.
ITD Cementation India won two contracts worth ₹960 crore—one for works at Trivandrum International Airport and another for a commercial building in Kolkata. In Q4 FY25, net profit jumped 27% YoY to ₹113.6 crore, with revenue rising 10% to ₹2,478.7 crore and operating margin improving to 10.5%. The board declared a ₹2 per share dividend, and the stock closed 1.3% higher at ₹810.75 on the BSE.
Top gainer and top loser Halal stocks in the India
Economic updates
Bank of Baroda reduced its repo-linked lending rate by 50 bps to 8.15%, aligning with RBI’s 50 bps repo rate cut to 5.5% and a 100 bps CRR cut to 3%, boosting banking liquidity. HDFC Bank lowered MCLR by 10 bps across tenures, with rates now ranging from 8.90% to 9.10%, benefiting MCLR-linked borrowers.
India lifted 171 million people out of extreme poverty over the past decade, with the rate dropping from 27.1% in 2011–12 to 5.3% under the new $3/day threshold. Rural and urban poverty gaps narrowed sharply, aided by subsidised food schemes, while the number of people below $3/day stood at 54.7 million in 2024. Despite this progress, India’s GDP remains ~5% below pre-pandemic trends, with recovery hinging on easing global uncertainties.
Rupee strengthens to 85.62 vs U.S. dollar on foreign inflows; upside capped by oil and dollar strength
The rupee rose 4 paise to settle at 85.62 against the U.S. dollar, supported by ₹1,992.87 crore in FII equity inflows and easing forward premiums due to narrower interest differentials. Gains were limited by mixed domestic market sentiment, rising crude oil prices, and a stronger dollar index, which climbed to 99.09. Analysts expect the RBI to manage volatility, with the USD-INR pair hovering in the 85–86 range as markets await further cues.
India’s forex reserves surged by $2.29 billion to reach $698.95 billion as of June 13, closing in on the all-time high of $704.89 billion recorded in September 2024. The Reserve Bank of India noted the reserves are now sufficient to cover 11 months of imports and 96% of external debt. Gold reserves stood at $86.32 billion, reflecting the RBI’s increasing allocation to gold, while foreign currency assets remained the largest component at $589.43 billion.
India’s banana exports hit $377.5 million in FY25, making it the country’s most exported fruit with a 29.7% year-on-year rise and a seven-fold increase since FY18. The surge is driven by competitive pricing and growing demand from the Middle East, where Indian bananas are now used in products like puddings and cookies. Industry experts expect FY26 shipments to exceed last year’s record, reflecting continued momentum.
Morgan Stanley projects India’s combined fiscal deficit to decline to 7% of GDP in FY26, with the Centre’s share at 4.4% and states at 2.6%, reflecting ongoing fiscal consolidation. The report credits improved tax buoyancy and a strategic shift toward capital spending, which reached a 19-year high of 3.2% of GDP in FY25. The share of capital expenditure in total spending has surged to 22.6%, underscoring the government’s focus on sustainable growth and inflation control.
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