Indian equity benchmarks erased initial gains and were trading marginally lower in morning deals, due to uncertainty over US-Iran peace deal. Some concern came as the Finance Ministry’s latest Monthly Economic Review, stated that the near-term outlook for the Indian economy is one of cautious resilience. It said with a below-normal monsoon forecast and a likely moderation in economic activity, overall consumption demand may face headwinds in the coming months. However, losses remain capped as traders took some support with survey showed India's manufacturing sector expanded at its fastest pace in three months in May on sustained demand even as cost pressures were among the most intense in nearly four years and business optimism softened to its lowest since February. The HSBC India Manufacturing Purchasing Managers' Index (PMI), ?compiled by ?S&P Global, rose to 55.0 in May from April's 54.7, higher than a preliminary estimate of 54.3. On the global front, Asian markets are trading mostly in green as traders remained optimistic about a permanent end to the Middle East war despite some pricking points on discussions to reach a potential deal to end the war and the opening of the Strait of Hormuz.
The BSE Sensex is currently trading at 74738.82, down by 36.92 points or 0.05% after trading in a range of 74718.85 and 75367.93. There were 10 stocks advancing against 20 stocks declining on the index.
The top gaining sectoral indices on the BSE were IT up by 2.97%, TECK up by 1.94%, Telecom up by 0.32%, Energy up by 0.25% and Healthcare up by 0.07%, while Power down by 2.09%, Capital Goods down by 1.83%, Utilities down by 1.66%, Industrials down by 1.44% and Realty down by 1.01% were the top losing indices on BSE.
The top gainers on the Sensex were Infosys up by 4.25%, Tech Mahindra up by 3.30%, TCS up by 2.80%, Interglobe Aviation up by 2.57% and Asian Paints up by 2.24%. On the flip side, NTPC down by 1.98%, Hindustan Unilever down by 1.33%, Kotak Mahindra Bank down by 1.25%, Mahindra & Mahindra down by 1.22% and Adani Ports &SEZ down by 1.13% were the top losers.
Meanwhile, the chief negotiators of the US and India are set to commence four days of discussions from June 1, 2026 to finalize the terms of the interim trade agreement, following a framework agreement reached in February. The US team will be headed by chief negotiator Brendan Lynch. India's chief negotiator is Darpan Jain, who is an additional secretary in the Department of Commerce.
The commerce ministry stated that ‘The two sides are proposed to finalise the details of the interim agreement and take forward the negotiations under the broader bilateral trade agreement (BTA) on multiple areas such as market access, non-tariff measures, customs and trade facilitation, investment promotion, and economic security alignment.’
India and the US issued a joint statement finalising the contours or framework of the first phase of BTA or an interim trade agreement on February 7. Both countries must now work out and finalize the legal provisions of the deal. The framework reaffirmed both countries' dedication to advancing the broader India-US BTA negotiations.
The CNX Nifty is currently trading at 23530.00, down by 17.75 points or 0.08% after trading in a range of 23517.70 and 23733.70. There were 20 stocks advancing against 30 stocks declining on the index.
The top gainers on Nifty were Infosys up by 4.17%, Tech Mahindra up by 3.29%, TCS up by 2.59%, Interglobe Aviation up by 2.53% and Coal India up by 2.28%. On the flip side, NTPC down by 2.03%, Hindustan Unilever down by 1.69%, Mahindra & Mahindra down by 1.61%, Adani Enterprises down by 1.52% and SBI Life Insurance down by 1.40% were the top losers.
Asian markets are trading mostly in green; Nikkei 225 surged 600.5 points or 0.91% to 66,930.00, Taiwan Weighted added 813.19 points or 1.82% to 45,546.13, Shanghai Composite strengthened 3.85 points or 0.09% to 4,072.42, KOSPI increased 365.18 points or 4.31% to 8,841.33 and Hang Seng advanced 225.61 points or 0.9% to 25,408.00.
