Monthly Market Review: June 2026

*This review was published retrospectively in November 2026 and is dated to the start of the following month. Some figures, such as AMFI flows, were released after month end and are included for completeness. Index returns are as reported in HSBC Mutual Fund's monthly Equity Market Review unless stated otherwise.*

Month at a glance

Equity and sectors

June brought relief. A ceasefire in the West Asia conflict and the reopening of the Strait of Hormuz caused a sharp fall in oil prices, and Indian equities recovered part of May's losses. Small caps led with a 5.4% gain, while mid-caps rose about 1%.

Banks were among the best performers. IT was the weakest sector by far: the Nifty IT index fell about 9.6% on worries that AI will reduce demand for traditional IT services, and after a large global IT firm cut its guidance. Despite the rally, the Nifty and Sensex were still down for the calendar year.

Foreign investors sold again, but less than in May. This was the fourth month in a row that their selling eased.

Debt and rates

At its 5 June meeting, RBI kept the repo rate at 5.25% with a neutral stance, and trimmed its growth forecast. It also took steps to support the rupee. April's CPI inflation of about 3.5% gave it room to wait, but energy prices and the monsoon remained the key risks to inflation.

Mutual fund flows (AMFI, June 2026)

• Equity funds received net inflows for the 64th month in a row, recovering after three months of declines.
• SIP assets rose to about ₹17.7 lakh crore, roughly 21.5% of industry assets.
• Gold fund assets fell as gold prices corrected and investors booked profits.

Gold, silver and global

• Oil eased as shipping routes reopened, but stayed volatile through the month.
• Gold corrected in rupee terms as investors took profits.
• Global attention moved from war risk to inflation and the path of interest rates.

What investors may note

• Mid-cap and small-cap shares have outperformed large caps in 2026 so far. Make sure your allocation hasn't drifted beyond your intended risk level.
• Record SIP contributions show investors staying disciplined through volatile markets.
• A single sector, like IT this year, can lag for a long time. Diversified funds spread this risk.

The month ahead (July 2026)

• Q1 FY27 company results begin
• CPI inflation for June: mid-July
• AMFI June data: around 10 July
• Monsoon progress and oil prices

*Sources: HSBC Mutual Fund Equity Market Review (June 2026), AMFI monthly data and notes (June 2026), RBI, and published market reports. Figures are rounded.*