Post Session: Quick Review

Last leg of downfall forced Indian equity markets to end Tuesday’s session flat as investors maintained risk-averse approach ahead of key macroeconomic data i.e. Consumer Price Index (CPI) and the Index of Industrial Production (IIP) to be out on June 12. However, most part of the day, markets traded in green. The broader indices, the BSE Mid cap index and Small cap index ended in green. Buying was witnessed in Oil & Gas sector’s stock, while selling was witnessed in banking and metal sector’s stock.

After making positive start, markets turned volatile for little time, as traders were cautious with a private report that India consumer inflation likely snapped a four-month downward trend in May due to rapidly rising food costs, suggesting the Reserve Bank of India is still several months away from cutting interest rates. However, markets gained traction as traders took encouragement as in his first decision after taking charge for the third time, Prime Minister Narendra Modi signed a file transferring the 17th instalment of the PM-Kisan Samman Nidhi (PM-KISAN) fund, amounting to nearly Rs 20,000 crore, to around 9.3 crore farmers. Markets continued to trade in green in afternoon session, as sentiments remained optimistic, as Industry Body Confederation of Indian Industry said continuity in policy reforms under the leadership of Prime Minister Narendra Modi is likely to drive India towards the goal of becoming a developed nation. Besides, a private report stated that the new coalition government is likely to stick to its medium fiscal consolidation roadmap, but with a tilt towards populism in its first budget post the elections. Traders took note of private report that India is expected to sustain a potential growth rate of 6.5 per cent -7 per cent year-on-year (Y-o-Y) between 2025-26 and 2029-30. In late afternoon session, indices witnessed selling pressure amid profit booking by investors.

On the global front, European markets were trading lower as unemployment rate ticked up to 4.4 percent from 4.3 percent in the three months to April, the highest rate since September 2021 but wage growth jumped to 5.9 percent, raising concerns that higher wages can feed into consumer prices and potentially stall the central bank's progress with inflation. Asian markets ended mostly in red after South Korea reported a current account deficit of $0.29 billion in April, following the $6.93 billion surplus in March. Back home, rating agency CRISIL in its latest report has said that asset reconstruction companies (ARCs) are set to see an increase in the cumulative recovery rate for stressed residential real estate projects by 500-700 bps to 16-18% as on March 31, 2025 from 11% as on March 31, 2024.

The BSE Sensex ended at 76,456.59, down by 33.49 points or 0.04% after trading in a range of 76,296.44 and 76,860.53. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.74%, while Small cap index was up by 0.95%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.93%, Oil & Gas up by 1.84%, Industrials up by 1.42%, Capital Goods up by 1.39% and PSU was up by 1.19%, while FMCG down by 0.27%, Bankex down by 0.26%, Healthcare down by 0.22%, Metal down by 0.09% and Consumer Durables was down by 0.04% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 1.64%, Tata Motors up by 1.26%, Maruti Suzuki up by 1.14%, NTPC up by 0.95% and Mahindra & Mahindra up by 0.93%. On the flip side, Kotak Mahindra Bank down by 1.44%, Asian Paints down by 1.18%, ITC down by 0.95%, Reliance Industries down by 0.92% and Sun Pharma down by 0.86% were the top losers. (Provisional)

Meanwhile, in order to meet the housing requirements arising out of the increase in the number of eligible families, the Government has decided in the cabinet meeting to provide assistance to 3 crore additional rural and urban households for the construction of houses under Pradhan Mantri Awas Yojana (PMAY).

The Government of India is implementing Pradhan Mantri Awas Yojana since 2015-16 to provide assistance to the eligible rural and urban households for construction of houses with basic amenities. Under PMAY, total 4.21 crore houses have been completed for the eligible poor families under the housing schemes in the last 10 years. 

All the houses constructed under PMAY are provided the other basic amenities such as Household Toilets, LPG connection, Electricity connection, Functional Household Tap Connection etc. through convergence with other schemes of Central Government and State Governments.

The CNX Nifty ended at 23,264.85, up by 5.65 points or 0.02% after trading in a range of 23,206.65 and 23,389.45. There were 29 stocks advancing against 21 stocks declining on the index. (Provisional)

The top gainers on Nifty were ONGC up by 5.56%, Larsen & Toubro up by 1.55%, Adani Ports up by 1.40%, Tata Motors up by 1.23% and Maruti Suzuki up by 1.15%. On the flip side, Kotak Mahindra Bank down by 1.47%, Divi's Lab down by 1.34%, Asian Paints down by 1.19%, Dr. Reddy's Lab down by 1.10% and Reliance Industries down by 1.00% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 56.36 points or 0.69% to 8,172.12, France’s CAC fell 60.13 points or 0.77% to 7,833.85 and Germany’s DAX was down by 107 points or 0.58% to 18,387.89.

Asian markets ended mostly lower on Tuesday as investors were cautiously awaiting key US inflation data and the outcome of the US Federal Reserve's policy meeting, and US central bank is widely expected to leave interest rates unchanged. Market sentiments fell further by fresh political uncertainty after gains by the far right in voting for the European Parliament on Sunday prompted a bruised French President Emmanuel Macron to call a snap national election. Moreover, Chinese shares declined as trading resumed after a long holiday weekend. However, Japanese shares gained by tracking overnight gains on Wall Street, while a weaker yen also continued to support Japanese equities. At the upcoming meeting, the Bank of Japan is widely expected to keep its short-term interest rate unchanged at 0.0% - 0.1%.