Post Session: Quick Review

Indian equity benchmarks rebounded sharply on Friday, with both the Nifty and Sensex snapping a three-day losing streak. The rally came after U.S. President Donald Trump announced he would decide within two weeks whether to authorize a direct military strike on Iran. After making a cautious start, soon indices gained traction and traded higher till end of the day, supported by a broad-based rally across sectors. Further, traders took support with exchange data showed Foreign Institutional Investors (FIIs) extended their buying spree for the third consecutive session, purchasing equities worth Rs 934 crore on Thursday.

Some of the important factors in today’s trade:

India rises to rank 15 among top global destinations for FDI: Traders got support as United Nations Conference on Trade and Development's (UNCTAD) report stated that India rose a position to rank 15 among top global destinations for foreign direct investment (FDI) in 2024, despite a marginal dip in inflows at $27.6 billion. 

Listed private non-financial companies reports 7.1% sales growth in Jan-Mar: RBI’s recent data showed that the sales of listed private non-financial companies grew by 7.1 per cent during January-March quarter of 2024-25 as compared to 8 per cent expansion in the previous quarter and 6.9 per cent during the year. 

Goyal says focused on doing trade deals to complement, not compete: Some support also came with Commerce and Industry Minister Piyush Goyal’s statement that India is in trade dialogues with countries with whom it doesn't compete but can complement the economies involved.

Global front: European markets were trading in green as traders took some support after the White House said President Donald Trump sees a substantial chance of negotiations and would decide within two weeks whether to authorize a direct U.S. military strike on Iran. Asian markets ended mostly in red on Friday, as People's Bank of China left its benchmark interest rate unchanged after reducing it last month. The central bank maintained its one-year loan prime rate at 3.0 percent.

The BSE Sensex ended at 82408.17, up by 1046.30 points or 1.29% after trading in a range of 81323.20 and 82494.49. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.20%, while Small cap index up by 0.55%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.73%, Realty up by 2.22%, Utilities up by 1.62%, PSU up by 1.59% and Power up by 1.43%, while there were no losing sectoral indices. (Provisional) 

The top gainers on the Sensex were Trent up by 4.03%, Bharti Airtel up by 3.17%, Mahindra & Mahindra up by 2.86%, Power Grid up by 2.18% and Reliance Industries up by 2.08%. On the flip side, Axis Bank down by 0.16%, Ultratech Cement down by 0.07% and Maruti Suzuki down by 0.02% were the few losers. (Provisional)

Meanwhile, the Ratings agency CRISIL in its report has said that headline inflation based on the CPI fell to 2.8 per cent in May, 2025, which is a good omen for the economy. According to CRISIL, a decline in food inflation is pulling down the headline retail inflation, but core inflation (excluding food and fuel) is edging up. Although remaining below the decadal trend, the core inflation has been now above four per cent for four months in a row. It said a persistent rise in core inflation can put pressure on headline inflation.

According to the ratings firm, rising core inflation is indicative of strengthening domestic demand in the economy. But a deep dive into core inflation suggests that most of its recent rise is tied to global economic volatility rather than domestic factors. It said gold prices react to global and not domestic signals. Although gold carries a small weight in the headline CPI (1.1 per cent of the total index), inclusion of it in the core CPI inflation distorts domestic price signals.

Gold carries a higher weight in India's core inflation index than it does elsewhere. Other prominent central banks also include gold in their core inflation index, but its weight is significantly lower than in India, limiting its impact on their core inflation measure. In India, a higher weight for gold is possibly due to its higher share in consumption compared to other countries. The agency said keeping out gold prevents misinterpretations of core CPI signals.

The CNX Nifty ended at 25112.40, up by 319.15 points or 1.29% after trading in a range of 24783.65 and 25136.20. There were 46 stocks advancing against 4 stocks declining on the index. (Provisional)

The top gainers on Nifty were JIO Financial Services up by 3.57%, Bharti Airtel up by 3.18%, Trent up by 3.04%, Mahindra & Mahindra up by 2.90% and Bharat Electronics up by 2.43%. On the flip side, Bajaj Auto down by 1.47%, Hero MotoCorp down by 1.04%, Maruti Suzuki down by 0.12% and Dr. Reddy's Lab down by 0.06% were the few losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 235.7 points or 1.02% to 23,293.08, France’s CAC rose 49.26 points or 0.65% to 7,602.71 and UK’s FTSE 100 increased 48.78 points or 0.55% to 8,840.58.

Asian markets settled mixed on Friday amid uncertainty around the Israel-Iran conflict. The White House has said the US President Donald Trump will decide whether or not the US gets directly involved in the Iran-Israel conflict within the next two weeks, while leaving the door open to negotiations. Chinese shares declined as the People’s Bank of China (PBoC) left its benchmark lending rates steady during the June fixing, in line with market expectations. Japanese shares fell slightly as data showed the country's core inflation rose to 3.7% in May, the highest since January 2023, raising concerns about tighter monetary policy. Meanwhile, the Bank of Japan's April 30 - May 1 policy meeting minutes showed the board was divided on the future inflation path. Seoul's Kospi index breached the 3,000-point mark for the first time in more than three years, supported by gains in big-cap tech shares. Data showed that South Korea's producer inflation slowed to 0.3% year-on-year in May 2025, down from 0.8% in April and the lowest since July 2023.