TLDR
📈 Market Recap: June 30, 2025
On Monday, June 30, 2025, Indian equity markets snapped a four-day rally as investors booked profits and global cues turned cautious. The BSE Sensex fell 452.44 points (0.54%) to close at 83,606.46, while the NSE Nifty 50 dropped 120.75 points (0.47%) to settle at 25,517.05. The decline was led by weakness in auto, private banks, metals, and realty stocks, while PSU banks and midcaps outperformed. Notably, the Nifty PSU Bank index extended its rally for a fifth straight session, jumping 2.66%, and the Nifty Midcap100 and Smallcap100 indices rose 0.68% and 0.52%, respectively. Volatility edged higher, with India VIX up 3.2% to 12.78.
Key Drivers:
Profit-taking in financials—sector fell ~0.4%, led by HDFC Bank (-0.8%) after near-record highs
Small & midcap outperformance boosted broader market segments (+0.5%/+0.3%)
Foreign inflows continued but were offset by domestic caution
Karnataka Bank dropped 7% following the CEO & ED resignation
Today’s Top Stories:
RBI FSR Sees Bad-Loan Ratio at 2.5 % by FY 27: RBI’s latest stability report projects banking gross NPAs at 2.5 % by March 2027, reinforcing PSU-bank strength despite flagged retail-loan risks.
Industrial Output Growth Cools to 1.2 %, a Nine-Month Low: India’s May industrial production grew just 1.2 % as power and mining contracted, damping hopes for an early RBI rate cut.
Sona Comstar to Produce Rare-Earth EV Magnets In-House: The auto-components maker will build domestic magnet capacity under India’s PLI scheme, cutting China dependence and fortifying EV-drive supply chains.
Adani Enterprises Files for ₹15 Billion AA-Rated Retail Bond Issue: Group flagship seeks up to ₹15 billion via its second retail bond to refinance capex and broaden funding sources after strong demand last year.
IndusInd Bank Sends Three-Name CEO Shortlist to RBI: IndusInd proposed Rajiv Anand, Rahul Shukla and Anup Saha for a three-year term, moving to steady governance; shares gained 1.6 %.
INDIASTOX INVESTMENT RESEARCH HACKATHON🏆 The Results Are In! Meet the Winners of Hackathon 1The first edition of the IndiaStox Investment Research Hackathon has wrapped up, and we’re excited to announce the standout entries that rose to the top. After a detailed review process by our expert panel, here are the top five submissions that demonstrated depth, clarity, and strong investment reasoning:
📌 In the coming days, we’ll be featuring select submissions across the IndiaStox platform and community channels. 💡 If you didn’t make it this time, we encourage you to stay engaged. The next edition of the hackathon begins Very Soon..., with updated judging criteria, new themes, and higher benchmarks. 🗣️ If you valued the experience or took something away from it, feel free to share it in your own way and tag @IndiaStox on LinkedIn or X. The more thoughtful voices we bring together, the stronger this community becomes. |
TOP STORIES
1. RBI FSR Sees Bad-Loan Ratio at 2.5 % by FY 27
DALL-E
Asset quality: Gross NPAs fell to 2.3 % in Mar-25; even a “severe-stress” simulation peaks at just 5.6 %.
Strategic take: Cleaner books suggest banks can accelerate credit growth without fresh capital strain, though retail delinquencies remain on the watch-list.
Market reaction: PSU-Bank index rallied 2.6 % as investors cheered the sector’s resilience highlighted in the report.
2. Industrial Output Growth Cools to 1.2%, a Nine-Month Low
DALL-E
Data snapshot: May IIP rose 1.2% y/y; manufacturing +2.6%, but electricity –5.8% and mining –0.1% dragged the headline.
Macro implication: Soft print reinforces the “patchy recovery” narrative and could temper near-term rate-cut hopes.
Economist view: ICRA blames an early monsoon and weak consumer-durables demand for the slowdown.
3. Sona Comstar to Produce Rare-Earth EV Magnets In-House
DALL-E
Capex plan: Company will start domestic rare-earth magnet production after importing 120 t from China last year.
Strategic rationale: Move leverages India’s PLI incentives, cuts supply-chain risk, and supports an EV-drive segment already ~⅓ of revenue.
Industry impact: Enhances India’s magnet self-sufficiency push amid Beijing’s export curbs.
4. Adani Enterprises Files for ₹15 Billion AA-Rated Retail Bond Issue
DALL-E
Deal size: Base ₹10 bn with a ₹5 bn greenshoe. Adani’s second retail bond since Sep-24.
Use of funds: Proceeds will refinance capex and widen the investor base; Nuvama, Trust, Tip Sons are arrangers.
Investor appetite: Stock dipped 0.3 %, but analysts expect strong demand after last year’s oversubscription.
5. IndusInd Bank Sends Three-Name CEO Shortlist to RBI
DALL-E
Shortlist: Board recommends Rajiv Anand, Rahul Shukla, and Anup Saha for a three-year term.
Governance context: New leader aims to steady the ship after April’s derivatives-loss exit and restore investor confidence.
Stock move: Shares gained 1.6 % to ₹872 on the announcement.
GYAANI HOT TAKES
Disclaimer:
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