Market Highlights: Sensex Rises 677 pts, Nifty Inches Away from 25,000

Sun Pharma shares slid up to 1.4% in the pre-open session after the company announced that the US FDA has issued Form-483 with eight observations after inspection of Halol facility.

Shares of Belrise Industries climbed nearly 5% after its net profit for the March quarter spiked seven times on year. Its revenue for the said period jumped 49% on year.

Shares of Asian Paints rose in early trade on 16 June after a block deal worth ₹1,876 crore hit the counter.

As many as 85 lakh shares of the telecom company reportedly changed hands in the pre-open block deal window. The transaction was executed at an average price of ₹2,207 per share, a premium of nearly 20% from the last close, according to reports.

Shares of Bajaj Finance adjusted for a stock split and bonus issue on June 16. To that effect, the stock opened at ₹956 per share, nearly 90% lower than its previous close of ₹9,331, adjusting for the combined effect of the corporate actions.

After factoring in the adjustment, the shares were down 0.7% in early trade. The non-banking financial company (NBFC) had announced a bonus issue in the ratio of 4:1 and a stock split in the ratio of 1:2 in late April.

Natco Pharma shares fell 2% in trade on June 16 after the US Food and Drug Administration (USFDA) issued a Form 483 with one observation following an inspection of the drugmaker's API manufacturing facility. The inspection was carried out between 9–13 June.

The company stated that the observation is procedural in nature and believes it can be addressed promptly. The inspection marks a routine regulatory review by the US health authority.

Shares of Tata Motors slipped by as much as 5% on June 16 after its luxury arm Jaguar Land Rover (JLR) rolled out a muted outlook for the current financial year over the previous one.

JLR expects its EBIT margin to range between 5% and 7% for FY26, significantly lower than the 8.5% margin it reported in the previous financial year. The guidance disappointed investors and triggered a sell-off in Tata Motors’ stock.

SpiceJet has reported its highest-ever quarterly net profit of ₹319 crore for Q4 FY25, staging a dramatic turnaround from the ₹26 crore profit recorded in the previous quarter. This sparked hopes of a strong recovery for the low-cost airline after several years of financial headwinds.

This also marks SpiceJet’s second consecutive profitable quarter, and more importantly, its first full-year net profit since FY18. For the entire financial year, the airline posted a net profit of ₹48 crore, reversing a ₹404 crore loss in FY24.

Shares of Sterlite Technologies skyrocketed 10% on June 16 after the company announced the expansion of its Data Centre portfolio to cater to the evolving needs of AI-driven infrastructure.

In an exchange filing, the company said it has launched a new generation of Data Centre solutions, spanning from cabling systems to end-to-end connectivity offerings, specifically designed to support the high-performance demands of AI-powered data centres.

Sterlite also highlighted the massive growth potential in the sector, estimating the global data centre market to reach $517 billion by 2030, with a compound annual growth rate (CAGR) of 10.5% over the period.

Shares of Hyundai Motor India opened 2% higher on 16 June after Swiss investment bank UBS initiated coverage on the stock with a ‘buy’ rating and a price target of ₹2,350, the highest on the Street. The target suggests a potential upside of 21% from Friday’s closing price.

In its note, UBS highlighted Hyundai Motor India’s capacity expansion as a key driver of a strategic shift for the company. A subsidiary of Hyundai Motor Company (HMC), the company is on track to become India’s second-largest passenger vehicle (PV) manufacturer by volume in FY25, underscoring its growing market presence and operational strength, UBS believes.

Morgan Stanley turned bullish on PI Industries and Navin Fluorine, raising their price targets by 42% and 28% respectively. PI was upgraded to ‘Overweight’ with a new target of ₹5,000, pushing its stock up 5%. Navin Fluorine was upgraded to ‘Equalweight’, with a revised target of ₹4,160, though its shares fell 2% on June 16, reported CNBCTV18.

Meta has appointed Arun Srinivas as its Managing Director and India Head. Srinivas, who joined Meta in 2020, previously led the company’s Ads Business in India.

His appointment comes as Meta looks to deepen its focus in one of its largest markets, reported ET.

Gold prices climbed for the fourth straight session on Monday, nearing a two-month high, Reuters reported. The rise comes amid escalating tensions between Israel and Iran, pushing investors toward safe-haven assets and increasing demand for gold.

Real estate developer Omaxe has acquired 260 acres of land in Amritsar and plans to develop 127 acres in the first phase. The company will invest ₹1,000 crore in this initial phase, marking a significant expansion in Punjab’s real estate sector.

Shares of HBL Engineering surged 5% to ₹619 on the BSE on Monday after the company announced securing a ₹132.95 crore order from South Central Railway. The contract involves implementing the Kavach train safety system across the Vijayawada–Ballarshah section, boosting investor sentiment and strengthening the company’s position in rail safety solutions.

Shares of Belrise Industries surged 6.9% to ₹108.98 on the BSE on Monday after the company posted a stellar 574% year-on-year rise in net profit to ₹110.02 crore for Q4FY25. Revenue for the quarter jumped 49% YoY to ₹2,274 crore, fueled by strong growth in its automotive components business, lifting investor sentiment and driving the stock higher.

US Food and Drug Administration (USFDA) has issued eight observations to Sun Pharmaceutical Industries’ Halol facility in Gujarat following a Good Manufacturing Practices (GMP) inspection conducted from June 2-13. The company confirmed receiving a Form-483 at the end of the inspection.

Separately, Sun Pharma’s Board has appointed Kirti Ganorkar as Managing Director for a five-year term, effective September 1, 2025. Dilip Shanghvi will continue as Executive Chairman of the Board.

"The uncertainty stemming from the Israel-Iran conflict has created a risk-off in global markets. The safe-haven buying is keeping gold firm but dollar continues to be weak. Interestingly there is no panic in equity markets. Markets will be severely impacted only if Iran closes the Strait of Hormuz triggering a huge spike in crude. This appears to be a low probability event now," said VK Vijayakumar, chief investment strategist, Geojit Investments.

"Gold prices are trading slightly lower on profit-booking; however the underlying momentum is expected to remains positive as safe-haven bids remain firm amid escalation in the Israel-Iran war and trade tariff related uncertainty. However, we may see some consolidation ahead key central bank meetings during the week with focus on U.S. Fed meeting on Wednesday," said Pranav Mer, vice president, EBG - commodity and currency research, JM Financial Services Ltd.

Nearly all stocks in Sensex30 were trading in green except Adani Ports, Sun Pharma and Tata Motors. Tech Mahindra, UltraTech Cement, HCL Tech, TCS and Infosys were among the top gainers.

"Muted food inflation coupled with a sustained contraction in fuel and energy prices continue to keep the wholesale inflation benign. The wholesale inflation moderated further to a 14-month low of 0.4% in May 2025, in line with India Ratings & Research’s (Ind-Ra) expectations of 0.5%. The fuel & power and energy prices declined 2.2% yoy (the most in 2025) and 12.4% yoy (ninth straight month of contraction) during May 2025 due to deceleration in global commodity prices," said Paras Jasrai, Associate Director at India Ratings and Research.

"India’s wholesale price index print came in at a 14-month low of 0.39% in May 2025, down from 0.85% in April, driven by easing prices across all major categories. The WPI food inflation in May cooled to 1.72%, compared to 2.55% in April, while the fuel and power fell further into negative territory at -2.27% in May. We have been seeing more broad-based easing across most categories," said Sankar Chakraborti, MD and CEO, Acuité Ratings & Research Ltd.

"Looking ahead, while the current inflation trajectory is a welcome development, volatility in global markets and economies and unpredictable weather patterns due to El Niño remain the risks to be monitored," said Chakraborti.

"Continued softening of Wholesale Price Index (WPI) inflation since December 2024 is a positive signal for higher economic growth in India. WPI inflation has reduced to 0.39% in May 2025 from 2.57% in December 2024, largely driven by a significant reduction in the prices of primary articles, fuel and power, as well as manufactured product categories. This downtrend in wholesale inflation will boost business sentiment as it will result in reduced costs of production, said Hemant Jain, President, PHDCCI.

The fall in prices of food articles from -0.86% to -1.56%; Petrol from -7.70% to -8.49%, and Manufactured products from 2.62% to 2.04% from April to May 2025, respectively, are significantly contributing to the softening of WPI inflation, Jain added.

Chinese and Hong Kong stocks closed higher on Monday as investors weighed mixed macroeconomic data. The CSI300 rose 0.3%, Shanghai Composite added 0.4%, and the Hang Seng gained 0.7%.

While factory output growth slowed, a rebound in retail sales—driven by e-commerce promotions—helped lift sentiment. Real estate and technology shares led the rally, with AI stocks up 0.9% and property stocks climbing over 2%.

"India’s wholesale price index print came in at a 14-month low of 0.39% in May 2025, down from 0.85% in April, driven by easing prices across all major categories.

The WPI food inflation in May cooled to 1.72%, compared to 2.55% in April, while the fuel and power fell further into negative territory at -2.27% in May. We have been seeing more broad-based easing across most categories.

On the macroeconomic front, CPI inflation has also been easing in recent months, gradually strengthening the case for a more accommodative stance by the RBI and raising the possibility of deeper rate cuts than we currently anticipate in the second half of the year.

Looking ahead, while the current inflation trajectory is a welcome development, volatility in global markets and economies and unpredictable weather patterns due to El Niño remain the risks to be monitored," Says Sankar Chakraborti, MD & CEO, Acuité Ratings & Research Limited.

BSE Sensex closed at 81,796.15 level mark on Monday, up by 677 points or 0.84%. Nifty50 closed at 24,946.50 level mark, just inches away from the psychological 25k level mark.