Post Session: Quick Review

Indian equity benchmarks ended flat on Tuesday amid mixed global cues as investors were cautious ahead of key developments in the US-China trade talks. After making a positive start, soon markets hovered near the flat line for most part of the session, as traders avoided to take risk ahead of Consumer Price Index (CPI) data, which is due on June 12.

Some of the important factors in today’s trade:

India-EFTA trade pact likely to be implemented from September: Traders paid no attention towards as Commerce and Industry Minister Piyush Goyal said that the free trade agreement (FTA) between India and the four-nation European bloc EFTA is likely to come into force from September. 

Goyal to meet Swiss, Swedish business leaders: Traders overlooked the Private report said that Commerce and Industry Minister Piyush Goyal will meet Swiss and Swedish business leaders this week and discuss ways to boost trade and investments.

FM asks NIIF to leverage its sovereign-backed design: Traders took note of Finance Minister Nirmala Sitharaman has asked the National Investment and Infrastructure Fund (NIIF) to leverage its sovereign-backed design to showcase its performance at the global stage. 

Global front: European markets were trading mostly in red even after official data showed the U.K. unemployment rate rose slightly in the three months to April period. Asian markets ended mostly in green ahead of a second day of talks in London between China and the U.S. to resolve tariff disputes and strengthen economic relations. 

The BSE Sensex ended at 82391.72, down by 53.49 points or 0.06% after trading in a range of 82240.40 and 82680.79. There were 13 stocks advancing against 17 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.04%, while Small cap index up by 0.33%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 1.58%, Utilities up by 1.11%, Power up by 0.95%, TECK up by 0.87% and Healthcare up by 0.45%, while Realty down by 1.18%, Telecom down by 0.55%, Consumer Disc down by 0.16%, Bankex down by 0.13% and Energy down by 0.11% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 2.27%, Tata Motors up by 2.01%, Infosys up by 1.51%, Bharat Electronics up by 1.26% and HCL Technologies up by 1.18%. On the flip side, Trent down by 1.64%, Maruti Suzuki down by 1.30%, Asian Paints down by 1.27%, Bajaj Finance down by 1.16% and Tata Steel down by 0.99% were the top losers. (Provisional)

Meanwhile, the Commerce and Industry Minister Piyush Goyal has said that there is no declining trend in Foreign Direct Investments (FDI) into India, though periodic fluctuations may occur sometimes due to global interest rate changes. He added India is seeing renewed overseas inflows and the government is open to suggestions and will adopt new measures to promote FDI in the country. Over the last eleven financial years (2014-25), India attracted FDI worth $748.78 billion, an increase of 143 per cent over the previous eleven years (2003-14), which saw $308.38 billion in inflows. Additionally, the number of source countries for FDI increased from 89 in 2013-14 to 112 in 2024-25, underscoring India's growing global appeal as an investment destination.

He said ‘I don't think that there is any declining trend, periodically there may be some changes, and that happens more due to changes in interest rate cycles in other countries, so if the bond yields in some countries become exorbitantly high, money tends to flow into those countries. we have once again seen money flowing back into India’. He highlighted that in 2024-25, India received a total FDI of $81 billion, which is the highest in the last three years. With $81 billion, he said India is back into the FDI growth trajectory, and added that ‘We are a listening government. We are open to suggestions and we are always ready to adopt newer measures’.

The highest was $84.83 billion in 2021-22. Foreign direct investment 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 to $50 billion during the entire previous financial year. Total FDI, which includes equity inflows, reinvested earnings and other capital, grew by 14 per cent to $81.04 billion during the last financial year. The same stood at $71.3 billion in 2023-24. During 2024-25, Singapore emerged as the largest source of FDI with $14.94 billion inflows. Sectorally, inflows rose in services, trading, telecommunication, automobile, construction development, non-conventional energy and chemicals.

The CNX Nifty ended at 25104.25, up by 1.05 points after trading in a range of 25055.45 and 25199.30. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 3.81%, Dr. Reddy's Lab up by 2.25%, Tata Motors up by 2.01%, Tech Mahindra up by 2.01% and Infosys up by 1.47%. On the flip side, Trent down by 1.68%, Asian Paints down by 1.29%, Bajaj Finance down by 1.14%, Tata Steel down by 1.04% and Bajaj Finserv down by 0.96% were the top losers. (Provisional) 

European markets were trading mostly in green; UK’s FTSE 100 increased 39.27 points or 0.44% to 8,871.55 and France’s CAC rose 1.24 points or 0.02% to 7,792.71, while Germany’s DAX lost 101.02 points or 0.42% to 24,073.30. 

Asian markets settled mixed on Tuesday, as participants were keenly awaiting further details and outcomes from the US-China trade talks. Shanghai stocks declined amidst persisting deflationary pressures and underwhelming trade performance with the lingering trade conflict. However, Japanese market ended modestly higher as bond yields fell after reports on relief over possible government auction.