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Stocks to Buy in June, 2025: So far in calendar year 2025, Indian benchmark indices—Sensex and Nifty—have delivered approximately 4 per cent returns despite a volatile market environment. US trade tariffs and rising geopolitical tensions between India and Pakistan, following the Pahalgam terror attack, created bouts of uncertainty for investors.
The broader markets, meanwhile, have shown mixed trends. The Nifty Midcap 100 index has gained around 1.4 per cent, while the Nifty Smallcap index has declined by 2.7 per cent. Read Stock Market Latest Updates Today LIVE
Market Outlook: Factors affecting stock markets
Given this backdrop, domestic brokerage firm InCred Equities has adopted a cautious approach and recommends selective stock additions for June 2025 for better yield potential.
1) Monsoon and Earnings Growth
InCred Equities highlighted that favorable monsoon forecasts and steady corporate earnings growth could support market sentiment in the near-term. The India Meteorological Department (IMD) has predicted above-normal southwest monsoon rainfall in 2025—106 per cent of the long-period average. While the monsoon arrived early in Kerala, further advancement is expected to pause until June 10, 2025.
On the earnings front, Centre for Monitoring Indian Economy (CMIE) data shows that profit after tax (PAT) for nearly 4,000 listed companies grew by 9 per cent year-on-year (Y-o-Y) in the March 2025 quarter (Q4FY25), matching the previous quarter's growth despite a modest 6.4 per cent Y-o-Y sales increase.
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Nifty50 companies reported a 5 per cent Y-o-Y growth in earnings per share (EPS) in Q4FY25, slightly exceeding Bloomberg's consensus estimates.
2) Strong GVA growth
India's real Gross Value Added (GVA) increased by 6.8 per cent in Q4FY25, the fastest growth in the past four quarters, according to the National Statistical Office. The agricultural sector showed a strong Y-o-Y growth, further boosting overall GVA performance.
With the combination of above-average rainfall and range-bound global crude oil prices, InCred expects continued momentum in India's GDP growth going forward.
Investment Strategy for June 2025
For June 2025, InCred Equities suggests adding 21 high-conviction stocks and reducing exposure to three stocks. Here is the segment-wise breakdown:
Top Largecap stocks ideas for June 2025:
The brokerage has recommended 'Add' on nine stocks including HDFC Bank, Tata Consultancy Services (TCS), and Bajaj Finance, and has suggested 'Reduce' on two stocks.
Top Midcap stock ideas for June 2025:
Under the midcap category, Incred has recommended to 'Add' four stocks including Ajanta Pharma and UPL.
Top Smallcap stock ideas for June 2025:
Eight smallcap stocks were given an 'Add' rating by the brokerage including names such as Birla Corporation, Ethos, and Skipper. Conversely, Clean Science and Technology was given a 'Reduce' rating.
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