Post Session: Quick Review

Local equity benchmarks ended marginally lower on Wednesday, weighed down by delays in finalizing the India-U.S. trade agreement and the upcoming monthly F&O expiry. After a cautious start, soon indices slipped into the red and remained in negative territory throughout the session as sentiment remained subdued ahead of the release of April's industrial and manufacturing production data later in the day.

Some of the important factors in today’s trade:

India's FDI inflows decline 24.5% in January-March quarter of 2024-25: Traders remained cautious as the government data showed that Foreign direct investment (FDI) equity inflow in India fell 24.5 per cent year-on-year to $9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at $50 billion during the entire previous financial year. 

IMD forecasts above-normal southwest monsoon rainfall for 2025: Traders took note of the India Meteorological Department (IMD), under the Ministry of Earth Sciences, has issued its updated Long-Range Forecast for the 2025 Southwest Monsoon season (June-September) along with the Monthly Rainfall and Temperature Outlook for June 2025.

India's goods, services exports likely to reach $1 trillion this fiscal: Traders overlooked the apex exporters' body -- Federation of Indian Export Organisations (FIEO) has suggested that the country's overall goods and services exports are likely to reach $1 trillion during 2025-26. Meanwhile, the exports were aggregated at $825 billion in 2024-25.   

Global front: European markets were trading in red despite the U.S. President Donald Trump's decision to pause tariffs on EU goods till July 9th and upcoming bond sales in Germany and Spain.  Asian markets ended in mixed amid ongoing uncertainty about Us-China trade relations.

The BSE Sensex ended at 81312.32, down by 239.31 points or 0.29% after trading in a range of 81244.02 and 81613.36. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.22%, while Small cap index up by 0.50%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.41%, Industrials up by 0.53%, PSU up by 0.38%, Capital Goods up by 0.37% and TECK up by 0.16%, while FMCG down by 1.33%, Metal down by 0.69%, Auto down by 0.67%, Consumer Durables down by 0.58% and Basic Materials down by 0.52% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bharat Electronics up by 1.32%, Bajaj Finance up by 1.07%, Bharti Airtel up by 0.67%, ICICI Bank up by 0.46% and Adani Ports and Special Economic Zone up by 0.46%. On the flip side, ITC down by 3.18%, Ultratech Cement down by 1.62%, Mahindra & Mahindra down by 1.41%, Power Grid down by 1.20% and Asian Paints down by 1.07% were the top losers. (Provisional)

Meanwhile, the Finance Ministry in its monthly economic review report has said that a successful US-India bilateral trade agreement could flip current headwinds into tailwinds, opening up new market access and energizing exports. India seeks full exemption from reciprocal tariffs before the July 8 deadline.

The report also stated that India has the potential to remain as one of the most promising destinations for investment, amid global uncertainty. It further noted that foreign direct investors are likely to respond positively to policies that strengthen the country's medium-term growth prospects. In particular, it said, policies that enhance the skills and productivity of the country's young workforce can significantly strengthen the virtuous cycle of investment and growth. It also said India continues to be the fastest growing major economy and faced the least amount of cut amongst other global economies as projected by various global agencies.

As per the report, India's economy as of April 2025 is characterized by robust domestic fundamentals, prudent macroeconomic management, and a capacity to withstand external shocks. Further, the report said that the services sector continues to post healthy expansion, offsetting some of the softness in merchandise exports. The Indian rupee has remained relatively stable, and foreign exchange reserves continue to provide a cushion against external shocks.

The CNX Nifty ended trading at 24752.45, down by 73.75 points or 0.30% after trading in a range of 24737.05 and 24864.25. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Life Insurance up by 1.76%, Bharat Electronics up by 1.31%, Bajaj Finance up by 1.05%, Bharti Airtel up by 0.67% and Hero MotoCorp up by 0.55%. On the flip side, ITC down by 3.16%, Indusind Bank down by 1.89%, Nestle down by 1.70%, Apollo Hospital down by 1.65% and Ultratech Cement down by 1.60% were the top losers. (Provisional) 

European markets were trading lower; Germany’s DAX lost 44.25 points or 0.18% to 24,182.24, UK’s FTSE 100 decreased 12.79 points or 0.15% to 8,765.26 and France’s CAC fell 5.06 points or 0.06% to 7,821.73.

Asian markets settled mixed on Wednesday despite a strong rally on Wall Street overnight driven by improved prospects for a US-EU trade agreement, strong US consumer confidence data, and a global bond surge. Meanwhile, investors were awaiting US PCE inflation reading and the release of minutes from the Federal Reserve May meeting. Chinese shares declined after a large explosion at a chemical plant in eastern China. Hong Kong shares dipped even as Xiaomi reported better-than-expected revenue in the March quarter. The Nikkei 225 ended little changed and the yen wobbled in volatile trading as a weak government bond auction sparked a sell-off in the country's bond market. However, Seoul shares climbed as global trade tensions eased and a survey showed South Korea's business sentiment improved for the third straight month in May.