Business

IIE DIGITAL DESK :  June 11, 2025 — Indian equity markets staged a strong performance on Wednesday, with the Sensex rising over 300 points and the Nifty crossing the psychologically important 25,200 mark. This upward momentum was largely fuelled by robust gains in oil and gas stocks, especially heavyweight Reliance Industries Limited (RIL), while the fast-moving consumer goods (FMCG) sector underperformed, dragging on broader gains.

The BSE Sensex closed the session at 83,450.62, up by 312.24 points or 0.38%. The NSE Nifty 50 ended at a fresh closing high of 25,215.10, registering a gain of 92.15 points or 0.37%. The rally came as investors showed renewed confidence in the energy sector, driven by global crude price strength and bullish sentiment around Reliance’s evolving business strategy. However, sentiment in consumer-focused stocks remained tepid due to concerns about margin pressures and rural demand headwinds.

Reliance Industries stole the spotlight on Dalal Street after reports emerged about a potential strategic stake sale in its green energy division and increased refining margins. The stock surged over 3% intraday and contributed significantly to the day’s benchmark index gains. Analysts cited robust fundamentals, long-term expansion plans, and positive global cues as catalysts for the rally in RIL and other oil and gas counters.

ONGC, Indian Oil Corporation, and GAIL were among the other notable gainers in the oil & gas pack, benefiting from the continued rise in crude oil prices and expectations of improved domestic demand in the second half of the year. The Nifty Oil & Gas index jumped more than 2.5%, emerging as the best-performing sector of the day.

The FMCG sector faced pressure as investors booked profits and remained cautious amid rising raw material costs. The Nifty FMCG index declined by nearly 1%, with marquee names like Hindustan Unilever, Nestle India, Britannia, and Dabur ending in the red. Sector watchers attributed the weakness to concerns over inflation in packaging and raw inputs, which could squeeze margins in the upcoming quarters. Rural demand recovery also appears patchy, dampening investor enthusiasm in consumption-heavy stocks.

The broader markets were largely mixed. While midcap and smallcap indices saw some activity, they lagged behind the frontline indices. The BSE MidCap index closed marginally higher, while the BSE SmallCap index ended flat, reflecting a stock-specific action trend rather than a broad-based rally.

Banking and financial services stocks lent stable support to the market, with HDFC Bank, ICICI Bank, and Axis Bank closing in the green. IT stocks were range-bound, with Infosys and Tech Mahindra showing modest gains, while TCS remained flat as global tech investors awaited U.S. inflation data and comments from the Federal Reserve’s policy meeting later this week.

Global cues remained cautiously optimistic, with most Asian markets trading steady amid anticipation of upcoming central bank policy decisions in the United States and Europe. Crude oil prices inched higher, providing support to the energy complex, while the Indian rupee traded within a narrow range against the dollar.

Market volatility eased slightly as the India VIX dropped, signaling improved investor confidence and relatively calm sentiment. Analysts remain optimistic about India’s market outlook in the near term but caution that external triggers such as global monetary policy and oil prices will continue to influence domestic momentum.

June 11 marked a day of gains for Indian equities, with the energy sector leading from the front. While the underperformance of FMCG capped the rally to some extent, the broader sentiment remained upbeat. Investors appear to be selectively rotating sectors based on fundamental strength, keeping the market dynamic and responsive to global and domestic cues.