Key Points

"Nifty 50 rose 3.1 per cent during the month, extending its leadership on a 12-month basis with a 6.3 per cent return. The Small-cap 250 index led the monthly performance with a 5.73 per cent gain and delivered 4 per cent annual returns, highlighting a renewed investor appetite for broader market segments," said PL Asset Management in its recent report.

Meanwhile, the Nifty Mid-cap index registered a 4.1 per cent rise in the month and a 5.6 per cent return over the past year.

According to the report, the overall momentum was supported by resilient macro fundamentals and improved breadth across sectors. At the same time, a ceasefire-driven rebound in global equities helped restore investor confidence as well.

The report noted that the month saw cyclicals lead outperformances.

Digital (5.42 per cent), Infrastructure (4.89 per cent), and Tourism (4.38 per cent) stood out in June, while Healthcare (15.01 per cent), Defence (21.78 per cent), and Finance (14.3 per cent) emerged as the top annual performers.

Banking and IT also saw robust gains, supported by a resurgence in credit demand and digital transformation tailwinds, the report highlighted.

"June data confirmed the ongoing disinflation trend, with strong tax collections and capital expenditure aiding macro stability. However, external headwinds such as volatile FII flows, tariff-related uncertainties, and monsoon outcomes remain key variables to watch in H2CY25," said Siddharth Vora, Head - Quant Investment Strategies and Fund Manager, PL Asset Management.

Market sentiment has started to rebound meaningfully since late March 2025, with a growing number of stocks trading closer to their 52-week highs than lows.

This shift signals a broad-based improvement in participation, supported by the rising Nifty500 Equal Weight vs Nifty500 1-year rolling return spread, which is climbing off a cyclical low--an early sign of improving market breadth and potential reversal or consolidation, the report said.

- IANS