Key Trends to Watch in June 2025: RBI MPC Meeting, Inflation Data and More

As of May 29, 2025, Indian equity markets witnessed a positive momentum, with both benchmark indices set to post monthly gains. The BSE Sensex rose from 80,242.24 at the beginning of the month to 81,312.32 on May 28, marking a 1.33% increase.

This upward trend reflects continued investor optimism amid domestic and global macroeconomic developments. Meanwhile, the broader Nifty 50 index also posted a healthy gain, climbing from 24,334.20 to 24,752.45 — a 1.72% rise over the same period.

One of the key market drivers in May was the shift in investor risk appetite, as geopolitical developments, particularly tensions in global trade corridors, prompted a reassessment of asset allocations.

Let’s take a look at the key trends and factors likely to influence Indian stock market movements in June 2025.

May 2025 Auto Sales

In April, the auto sector presented a mixed picture. While overall passenger vehicle dispatches to dealers grew nearly 4%, this growth was largely driven by strong demand in the utility vehicle (UV) segment, which saw a robust 12.1% rise.

In contrast, car sales dropped by 5.4%, and two-wheeler sales fell sharply by 16.7% to 1.45 million units. Three-wheeler sales dipped marginally by 0.7%, despite a strong showing in FY24. These figures, reported by the Society of Indian Automobile Manufacturers (SIAM), exclude Tata Motors’ data.

Investors will now closely watch the upcoming May sales data to assess whether the April trends persist, especially amid changing consumer demand and sector-specific pressures.

India and US May Inflation Data

India’s retail inflation eased to a six-year low of 3.16% in April, down from 3.34% in March, largely due to continued softening in food prices. This marks the third straight month that inflation has stayed below the Reserve Bank of India’s medium-term target of 4%, offering a positive signal for the economy.

Despite intense heat waves during the month, a resilient harvest helped keep food inflation in check, bringing relief to consumers. Looking ahead, market participants will be watching the May inflation data closely to assess whether prolonged heat waves have begun to strain crop yields and food supply dynamics.

RBI Monetary Policy Committee June Meeting

The Reserve Bank of India’s Monetary Policy Committee (MPC) has already implemented rate cuts in February and April to boost economic growth. The MPC is scheduled to meet on June 4, with its decision expected on June 6.

As per news reports, the Consumer Price Index (CPI) remaining below the RBI’s 4% medium-term target for the third consecutive month provides the central bank with the flexibility to lower benchmark rates further, signalling a stronger focus on supporting growth.

Read More: Upcoming Dividends in June 2025: L&T, Tata Motors, TCS, JSW Energy, Trent, Adani Enterprises & More.

Conclusion

June 2025 promises to be a pivotal month for the Indian stock market as investors navigate a mix of encouraging economic signals and potential challenges. With steady gains in key indices, easing inflation, and the RBI’s monetary policy decisions on the horizon, market participants will closely monitor how these factors influence market sentiment and sector performance.

Auto sales data and inflation trends, both domestic and global, will play crucial roles in shaping investment strategies. Staying informed about these developments will be essential for investors aiming to capitalize on opportunities while managing risks in a dynamic market environment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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