Broader markets decline amidst Geopolitical tensions and profit booking

16 Jun 2025 , 10:19 AM

Weekly Market Wrap – IT and Pharma gain; Banking and Realty see profit booking

Last week, select indices performed amidst broadbased weakness. Geopolitical tensions resurfaced as Israel launched an attack on Iran. Crude Oil spiked significantly. Domestically, profit booking emerged in sectors like Real Estate and Banking, which had witnessed strong rallies in the past few weeks. IT stocks bucked the trend as they witnessed optimism fueled by US-China trade talks. The correction was broad-based across large, mid and small caps.

 

NIFTY 50 – Corrects on Growing Risks and Profit Booking

Weekly Performance: -1.14%

date	open	high	low	close
2025-06-06	24748.7	25029.5	24671.4	25003.1
2025-06-09	25160.1	25160.1	25077.2	25103.2
2025-06-10	25196.1	25199.3	25055.4	25104.2
2025-06-11	25134.2	25222.4	25081.3	25141.4
2025-06-12	25164.4	25196.2	24825.9	24888.2
2025-06-13	24473.0	24754.3	24473.0	24718.6

Source: NSE

NIFTY was under pressure last week, mostly due to weak global markets and rising geopolitical risks. The NIFTY 50 index had corrected by 1.14%, with 18 advances and 32 declines. Top gainers for week were Tech Mahindra with a rise of 5.59%, followed by ONGC, Wipro, HCL Technologies and Grasim Industries. On the flip side, the top losers were Eternal, Adani Ports, Titan, Power Grid and Tata Steel.

NIFTY MIDCAP SELECT – A modest correction after a strong rally in the week prior

Weekly Performance: -1.17%

date	open	high	low	close
2025-06-06	12999.2	13157.2	12956.5	13146.0
2025-06-09	13224.3	13319.0	13194.3	13302.3
2025-06-10	13359.3	13376.5	13282.6	13311.7
2025-06-11	13346.7	13351.2	13175.7	13237.5
2025-06-12	13243.5	13247.0	13008.7	13036.3
2025-06-13	12769.8	13018.7	12756.2	12991.6

Source: NSE

Midcaps witnessed profit booking as the NIFTY MIDCAP SELECT index was down 1.17% last week. Among the top gainers, Oracle Financial Services Software, Max Healthcare Institute, Mphasis, Persistent Systems, and Bharat Forge were the top gainers on the NSE, gaining 7.88%, 5.53%, 3.89%, 3.63%, and 1%, respectively. The top losers were BSE, Hindustan Petroleum, Dixon Technologies, Idea Cellular, and Yes Bank, down by 7.57%, 5.11%, 3.66%, 3.61%, and 3.31%, respectively. Declines outnumbered advances as 17 shares fell and 7 shares rose.

NIFTY IT – Strong comeback after two weeks of negative returns

Weekly Performance: 3.15%

date	open	high	low	close
2025-06-06	37134.1	37356.3	36910.9	37294.9
2025-06-09	37522.5	37786.2	37445.3	37669.2
2025-06-10	37871.6	38567.8	37825.1	38299.9
2025-06-11	38355.5	38834.8	38215.0	38784.3
2025-06-12	38732.9	38891.1	38227.2	38460.3
2025-06-13	37769.5	38687.6	37722.2	38469.2

Source: NSE

The NIFTY IT Index recovered last week, with an increase of 3.15% while the NIFTY 50 index lost 1.14% during the same period. The strong comeback happened after two consecutive weeks of negative returns for the index. Positive sentiment from US-China trade talks was a key tailwind for the sector. Oracle Financial Services, Tech Mahindra, Wipro, LTI and Mphasis stood as the top gainers, with each of them gaining 3.9% to 7.9%. The index had a broadbased rally as all of the index stocks advanced and there were no declines.

NIFTY BANK – Loses ground as profit booking sets in

Weekly Performance: -1.86%

date	open	high	low	close
2025-06-06	55699.4	56695.0	55534.8	56578.4
2025-06-09	57049.5	57049.5	56792.7	56839.6
2025-06-10	56993.9	57015.4	56564.1	56629.1
2025-06-11	56639.9	56782.5	56399.4	56459.8
2025-06-12	56480.9	56611.1	55968.5	56082.6
2025-06-13	55149.3	55688.0	55149.3	55527.4

Source: NSE

NIFTY BANK Index has lost 1.86% over last week compared to a decrease of 1.14% in NIFTY 50 in the same period. After the strong rally following RBI’s surprisingly large rate cut, banking stocks witnessed significant profit booking last week. FIIs outflows may have also impacted the private sector banks where FIIs have a large interest. Also, the index had closed positive for 3 consecutive weeks prior to last week.

The top gainers of NIFTY BANK were AU Small Finance Bank 2.54%, Kotak Mahindra Bank 1.64% and Axis Bank 0.94%. On the other hand, the biggest losers were Canara Bank, Punjab National Bank, HDFC Bank, ICICI Bank and Bank of Baroda that declined are 3.67%, 3.24%, 3.09%, 2.99% and 2.83%, respectively. The selling pressure was broadbased as only 3 stocks advanced and 9 declined.

 

 

 

 

NIFTY PHARMA – A significant outperformance

Weekly Performance: 1.39%

date	open	high	low	close
2025-06-06	21686.8	21707.7	21557.0	21684.4
2025-06-09	21751.1	21840.9	21694.8	21826.8
2025-06-10	21886.4	21976.9	21802.2	21948.0
2025-06-11	22016.4	22090.8	21962.3	22057.2
2025-06-12	22124.8	22354.8	21968.8	22036.2
2025-06-13	21778.3	22008.9	21742.1	21985.2

Source: NSE

The index gained 1.4% and outperformed Nifty 50, which fell 1.14% last week. Among the top gainers in the index were Biocon, Natco Pharma, Glenmark Pharmaceuticals, Laurus Labs and Dr. Reddy’s Laboratories, where gains were in the range of 3.2% to 7.7%. On the other hand, Granules India, Aurobindo Pharma, Abbott India, Alkem Laboratories and IPCA Laboratories were the top losers, which declined 0.18-3.88%. 14 stocks traded with gains and 5 declined, signaling a positive market breadth.

NIFTY ENERGY – Select Buying As Crude Oil Spikes

Weekly Performance: -0.51%

date	open	high	low	close
2025-06-06	35885.1	35962.4	35790.6	35924.1
2025-06-09	36143.2	36371.1	36079.4	36352.8
2025-06-10	36536.6	36582.6	36329.1	36515.2
2025-06-11	36649.9	36938.9	36495.4	36624.7
2025-06-12	36753.1	36771.4	35851.9	35918.4
2025-06-13	35408.0	35819.0	35304.9	35740.6

Source: NSE

Last week, the NIFTY 50 index fell by 0.5%. Once again, Reliance Power was among the top gainers. It was up 8.8%. Other top gainers included ONGC, Oil India and JP Power. The Iran-Israeli tensions and the resultant spike in oil prices has been a tailwind for oil majors. Conversely, Inox Wind, Indraprastha Gas, and Hindustan Petroleum were the top losers, shedding 6.27%, 5.57%, and 5.11%, respectively. The market breadth was negative as there were 12 advances and 28 declines.

NIFTY FMCG – A sharp correction

Weekly Performance: -2.29%

date	open	high	low	close
2025-06-06	55737.9	55842.1	55564.1	55802.7
2025-06-09	55974.1	56079.2	55686.2	56026.1
2025-06-10	56178.2	56331.8	55952.9	56198.8
2025-06-11	56128.8	56208.4	55749.2	55820.6
2025-06-12	56019.4	56020.2	55005.1	55104.1
2025-06-13	54373.6	54688.6	54349.1	54527.1

Source: NSE

The NIFTY FMCG index fell 2.29% for the week compared to NIFTY 50’s 1.14%, showing relative underperformance. United Spirits, Tata Consumer Products, Dabur, Hindustan Unilever, and Colgate-Palmolive were the top losers, falling as much as 2.52% to 8.81%. There were no gainers. After the sharp fall, the index has given up all of its gains of the prior week.

NIFTY REALTY – A sharp correction on profit booking

Weekly Performance: -3.14%

date	open	high	low	close
2025-06-06	996.3	1042.6	994.5	1039.6
2025-06-09	1049.7	1049.7	1034.1	1038.2
2025-06-10	1041.8	1045.2	1024.4	1026.3
2025-06-11	1027.8	1036.6	1019.3	1027.2
2025-06-12	1027.7	1028.3	1004.0	1006.5
2025-06-13	982.3	1010.2	981.9	1007.0

Source: NSE

Prior to last week, NIFTY REALTY index had a sharp rally of ~23% since its May low. It had also witnessed gains for three consecutive weeks prior to the last week. On likely profit booking, NIFTY REALTY stocks witnessed significant selling pressure and fell 3.1% last week. Some of the top losers were Brigade Enterprises (-7.25%), Sobha (-6.96%), Anant Raj (-5.39%), Lodha Developers (-4.18%) and Raymond (-4.16%). Interestingly, no stock advanced here and 10 stocks declined, suggesting widespread profit booking.

NIFTY AUTO – A modest underperformance

Weekly Performance: -1.41%

date	open	high	low	close
2025-06-06	23343.1	23677.7	23208.1	23661.3
2025-06-09	23789.8	23882.8	23698.6	23777.2
2025-06-10	23869.8	23872.2	23743.2	23759.0
2025-06-11	23797.5	23984.7	23774.0	23805.2
2025-06-12	23838.2	23857.6	23341.4	23411.8
2025-06-13	22941.8	23365.2	22915.7	23327.4

Source: NSE

The NIFTY AUTO Index declined 1.41% between June 7 and June 14, as compared to NIFTY 50’s 1.14% fall. Shares of Hero MotoCorp and Bharat Forge were the top gainers – 1.54% and 1%, respectively while Tata Motors gained 0.15%. Conversely, Tube Investments of India, Mahindra & Mahindra, Ashok Leyland, Motherson and Exide Industries were the top losers with losses of 2.15% and 4.26%. The advance-decline ratio was tilted toward decliners with 12 stocks declining vs 3 advancing.