Nifty ends above 24,800 on strong global signals

Domestic equity benchmarks bounced back with modest gains today, halting a two-day losing run. The mood turned upbeat after a U.S. federal court struck down President Donald Trump?s proposed Liberation Day tariffs, triggering a relief rally across global markets.

Back home, the session remained choppy thanks to the monthly expiry of the Nifty F&O series. Still, a cocktail of positive factors, including a stronger monsoon outlook, easing inflation expectations, and optimism around Q4 GDP growth, kept investor spirits high.

The Nifty wrapped up above the 24,800 mark. On the sectoral front, metals, pharma, and IT stocks were the day?s favourites, while PSU banks and FMCG stocks stayed on the backfoot.

The S&P BSE Sensex added 320.70 points or 0.39% to 81,633.02. The Nifty 50 index rose 81.15 points or 0.33% to 24,833.60.

Adani Ports & SEZ (up 1.92%), Infosys (up 0.85%) and Reliance Industries (up 0.44%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.48% and the S&P BSE Small-Cap index added 0.39%.

The market breadth was positive. On the BSE, 2,020 shares rose and 1,957 shares fell. A total of 134 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 8.86% to 16.42.

RBI Annual Report Highlights:

The Reserve Bank of India (RBI), in its annual report, projected that the Indian economy is likely to maintain its position as the fastest-growing major economy in FY2025-26. The optimism is fueled by a pickup in private consumption, robust bank and corporate balance sheets, supportive financial conditions, and a sustained push from the government on capital expenditure.

The central bank also painted a positive inflation outlook for the coming year, citing easing global supply chain pressures, a dip in commodity prices, and the prospect of a strong agricultural output driven by an above-normal southwest monsoon.

However, the RBI cautioned that financial markets may face intermittent volatility, particularly in response to global uncertainties like shifting trade tariff policies and rising geopolitical tensions.

On the financial front, the RBI?s balance sheet grew 8.20% year-on-year to Rs 76.25 lakh crore as of 31 March 2025. While income for the year increased by 22.77%, expenditure increased by 7.76%. The year ended with an overall surplus of Rs 2.68 lakh crore as against Rs 2.10 lakh crore in the previous year, resulting in an increase of 27.37%.

The asset side of the balance sheet saw increases in gold reserves, domestic investments, and foreign investments. Domestic assets accounted for 25.73% of total assets, while foreign currency assets, gold, and other holdings made up the remaining 74.27%.

On the liabilities side, the growth was attributed to a rise in currency in circulation, revaluation accounts, and other liabilities by 6.03%, 17.32% and 23.31%, respectively.

Numbers to Track:

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.4900, compared with its close of 85.3875 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement shed 0.10% to Rs 95,070.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 99.89.

The United States 10-year bond yield jumped 1.21% to 4.533.

In the commodities market, Brent crude for July 2025 settlement added 90 cents or 1.39% to $65.80 a barrel.

Global Markets:

US Dow Jones futures jumped 232 points early Thursday, signaling a strong start for Wall Street.

Shares in Europe and Asia advanced on Thursday after a U.S. federal trade court ruled that President Donald Trump exceeded his authority with his reciprocal tariffs, dealing a blow to a major tenet of the president?s economic agenda. The court ruled that Trump had overstepped his authority by imposing tariffs on over 180 countries and territories back in April.

The decision came from a three-judge panel at the US Court of International Trade. They found that the 1977 International Emergency Economic Powers Act (IEEPA), the legal crutch Trump leaned on, didn't give the president free rein to roll out such broad trade measures. The court issued a permanent halt to the tariffs named in the case and blocked any future tweaks. The Trump administration now has 10 days to make the necessary changes but has already appealed the decision to the US Court of Appeals for the Federal Circuit.

Meanwhile, South Korea's central bank, the Bank of Korea, cut its benchmark interest rate from 2.75% to 2.5%, marking its lowest level since August 2022.

Investors in Asia are also keeping a close watch on chipmakers after Nvidia?s strong earnings. The GPU giant beat expectations on both top and bottom lines, driven by a 73% year-over-year surge in its data center business.

Back in the US, stock markets closed lower on Wednesday. The S&P 500 dipped 0.56%, the Nasdaq fell 0.51%, and the Dow Jones lost 0.58% as investors digested earnings and the latest Fed minutes.

Speaking of which, the Fed?s May 6-7 meeting minutes hinted at a looming policy dilemma. Officials acknowledged that they may soon face some tough calls if inflation and unemployment start rising together. The Fed might be forced to choose between fighting inflation with higher rates or supporting growth and jobs by cutting them.

Stocks in Spotlight:

Indusind Bank rose 2.41%. Capital markets regulator Sebi has passed an ex-parte interim order against five senior executives including former CEO Sumanth Kathpalia of IndusInd Bank in an insider trading case. The market regulator found that these individuals sold shares of the bank while in possession of unpublished price sensitive information (UPSI), avoiding losses worth nearly Rs 20 crore. In its order, Sebi has frozen the bank accounts and demat accounts of the five individuals to the extent of their gains. It has also barred them from buying or selling securities until further notice. The bank and its executives have been asked to submit a detailed account of their financial and asset holdings within 15 days.

Welspun Corp jumped 10% after its consolidated net profit surged 160.09% to Rs 698.31 crore, despite a 12.01% fall in revenue from operations to Rs 3,924.97 crore in Q4 FY25 over Q4 FY24.

Deepak Nitrite jumped 5.03% after the company?s consolidated net profit surged 106.35% to Rs 202.41 crore on 14.52% increase in revenue from operations to Rs 2,179.69 crore in Q4 FY25 over Q3 FY25. On year on year (YoY) basis, the company?s consolidated revenue jumped 2.5%, while net profit declined 20.3% in Q4 FY25.

Cummins India surged 6.55%. The company has reported 7% fall in standalone net profit to Rs 521 crore on a 6% rise in total sales to Rs 2,414 crore in Q4 FY25 as compared with Q4 FY24.

Avanti Feeds rallied 2.05% after the company?s consolidated net profit jumped 45.8% to Rs 151.77 crore on 7.9% increase in revenue from operations to Rs 1,385.14 crore in Q4 FY25 over Q4 FY24.

Insecticides (India) surged 3.78% after the company's consolidated net profit soared 85% to Rs 13.89 crore, while revenue from operations rose 32% to Rs 358.92 crore in Q4 March 2025 over Q4 March 2024.

Waaree Energies surged 7.91% after the company announced that its wholly owned subsidiary, Waaree Solar Americas, has secured an order worth $176 million from a prominent U.S.-based client.

Sandur Manganese & Iron Ores tanked 10.37% after the company?s consolidated net profit fell 4.52% to Rs 156.21 crore, despite a 139.46% surge in revenue from operations to Rs 1,321.27 crore in Q4 March 2025 over Q4 March 2024.

Jyoti Structures dropped 6.84% after the company's consolidated net profit fell 15.51% to Rs 11.93 crore, while revenue from operations rose 27.71% to Rs 164.69 crore in Q4 March 2025 over Q4 March 2024.

IPO Update:

The initial public offer (IPO) of Scoda Tubes received bids for 9,56,01,500 shares as against 1,18,46,169 shares on offer, according to stock exchange data at 16:51 IST on Thursday (29 May 2025). The issue was subscribed 8.07 times.

The issue opened for bidding on Wednesday (28 May 2025) and it will close on Friday (30 May 2025). The price band of the IPO is fixed between Rs 130 and 140 per share. An investor can bid for a minimum of 100 equity shares and in multiples thereof.

Prostarm Info Systems' IPO received bids for 1,08,70,41,382 shares as against 1,12,00,000 shares on offer, according to stock exchange data at 16:51 IST on Thursday (29 May 2025). The issue was subscribed 97.06 times.

The issue opened for bidding on Tuesday (27 May 2025) and it will close on Thursday (29 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.

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