Liquor stocks witness sharp moves after Maharashtra's new excise policy
The Indian stock market continues to trade in positive territory today. Both the Sensex and Nifty indices are showing steady gains while the market consolidates. The overall mood remains optimistic as traders closely watch sector performances, stock-specific movements, and global cues.
Market Performance
Sensex and Nifty
Sensex is trading at 82,654 points, up by 263 points or 0.32%.
Nifty is at 25,212 points, rising 108 points or 0.43%.
Both benchmark indices are showing healthy gains, suggesting buyers are active across several sectors even as the market remains in a consolidation phase.
Top Gainers and Losers
Leading Gainers on Sensex
Mahindra & Mahindra (M&M) is seeing strong buying interest.
Reliance Industries continues to attract investors.
UltraTech Cement is moving higher on a strong sector outlook.
Bajaj Finserv gains on positive financial sector sentiment.
NTPC is rising on continued energy sector strength.
These companies are contributing heavily to the upward movement in the indices.
Major Losers on Sensex
Power Grid is under selling pressure.
Adani Ports faces declines.
Titan slips in today’s trade.
Maruti Suzuki also records losses.
Weakness in these companies is preventing stronger gains for the indices.
Mid-Cap and Small-Cap Indices
The Nifty MidCap Index is trading almost flat with a slight positive bias, up by 0.06%.
The Nifty SmallCap Index is slightly higher, up by 0.11%.
The broader market shows limited gains, indicating that investors are selective in mid-cap and small-cap stocks while focusing more on large-cap names today.
Sectoral Performance
Top Gaining Sectors
Nifty Auto Index is up over 0.5%, reflecting strong interest in auto stocks.
Nifty Metal Index also gains over 0.5% as metal stocks perform well.
Nifty Realty Index advances by more than 0.5%, showing buying in real estate stocks.
These sectors are driving much of the strength in today’s market.
Weakest Sector
Nifty FMCG Index is the biggest loser, down by 0.34%, as some profit booking and sector-specific weakness weigh on consumer goods companies.
Special Focus: Liquor Stocks in the Spotlight
Maharashtra Government’s New Liquor Policy
The Maharashtra government has introduced major changes in liquor taxation:
Excise duties on Indian Made Foreign Liquor (IMFL) have been increased.
Licensing fees for liquor companies have also gone up.
These changes aim to boost tax revenues by approximately ₹14,000 crore.
Impact on Liquor Companies
United Spirits, United Breweries, and Allied Blenders have fallen by up to 6-7% following the new policy.
Other liquor companies like Radico Khaitan and Tilaknagar also face declines.
Winners in the Liquor Sector
Sula Vineyards shares have surged by around 13-18%.
GM Breweries has jumped by 16-18%.
These companies benefit from the new introduction of Maharashtra-Made Liquor (MML). This category will allow local manufacturers to produce a grain-based alcohol exclusively for Maharashtra, giving smaller local producers like GM Breweries a competitive advantage.
Market Drivers: Global and Domestic Factors
Global Cues
Positive developments in trade talks between major countries, including India, the U.S., and China, are lifting global market sentiment.
Asian stock markets are also trading higher on the back of these positive talks, which are supporting the Indian market today.
Volatility Levels
The India VIX (volatility index) has dropped below 15, indicating calmer market conditions.
Lower volatility is generally seen as a sign of stability and investor confidence.
Market Outlook
Market experts suggest that the Indian market is currently in a consolidation phase, but with a positive bias:
A strong breakout above Nifty 25,200 could lead to further gains toward 25,600.
Key support is expected around 24,900-25,000, providing a safety zone if markets pull back.
While markets are stable today, traders remain watchful of global developments and upcoming economic reports that could influence future moves.
Institutional Investment Trends
Foreign Investors
Foreign Institutional Investors (FIIs) have withdrawn around ₹1.22 lakh crore from Indian equities so far in 2025.
This cautious approach reflects global uncertainties and profit booking.
Domestic Investors
Domestic Institutional Investors (DIIs), including mutual funds, are actively buying, having invested roughly ₹3.04 lakh crore during the same period.
Strong domestic participation is helping support market levels despite foreign outflows.
Corporate Earnings and Growth Projections
Earnings Recovery Expected in FY26
Corporate earnings for major companies are projected to grow by 12-13% in FY26.
This growth will likely be driven by improved sales, cost management, and better profit margins across sectors.
Analyst Forecasts
Earlier predictions had placed Nifty at 24,000 and Sensex at 78,500 for early 2025.
With a stronger-than-expected recovery, Nifty is now expected to climb to 26,500 by the end of the year, with further growth possible in 2026.
Expert Opinions
Some experts remain optimistic, citing strong consumption, government spending, lower oil prices, and good rural demand as positive factors.
Others remain cautious due to concerns about high valuations and the pace of economic growth.
Key Takeaways
Sensex and Nifty continue to trade higher, supported by gains in auto, metal, realty, and energy sectors.
Liquor stocks experience mixed performance, with IMFL players falling while local liquor and wine producers rally after new state policies.
Market volatility remains low, and domestic institutions are providing strong support through steady buying.
Earnings growth is expected to pick up in FY26, adding further strength to market fundamentals.
Key resistance and support levels are being closely watched as markets prepare for potential breakouts or corrections.
Outlook
Indian stock markets are holding steady with a positive bias on June 11, 2025. While foreign investors remain cautious, strong domestic inflows and improving earnings prospects are keeping markets well-supported. Sector rotation is visible, with cyclicals leading and FMCG lagging.
The Maharashtra liquor policy has triggered sharp movements within the liquor sector, showing how policy changes can significantly impact stock prices. Overall, the market remains stable as investors await further triggers from global developments and corporate earnings in the coming weeks.