Nifty above 24,550; IT shares in demand

The frontline indices traded with modest gains in early afternoon trade, sustaining upward momentum as investor sentiment remained positive ahead of the upcoming RBI policy meeting. However, market participants will closely track domestic bond markets, Brent crude oil prices, and global trade development. The Nifty traded above the 24,550 mark.

IT stocks rebound after a three-day losing streak.

At 12:30 IST, the barometer index, the S&P BSE Sensex, advanced 175.81 points or 0.22% to 80,913.32. The Nifty 50 index added 45.35 points or 0.19% to 24,589.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.47% and the S&P BSE Small-Cap index added 0.48%.

The market breadth was positive. On the BSE, 2,045 shares rose and 1,799 shares fell. A total of 175 shares were unchanged.

The Reserve Bank of India commenced its monetary policy meeting today, 4 June 2025, which will conclude on 6 June 2025. The meeting is being chaired by Governor Sanjay Malhotra. With inflation showing signs of moderation, market participants are speculating on the possibility of a rate cut.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.8 in May from 58.7 in April 2025. Growth was reportedly underpinned by healthy demand conditions, new client wins, and greater staffing capacity.

The HSBC India Composite PMI Output Index came in at 59.3 in May, down only marginally from 59.7 in April. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 4.74% to 15.77. The Nifty 26 Jun 2025 futures were trading at 24,718.70, at a premium of 129.7 points as compared with the spot at 24,611.95.

The Nifty option chain for the 26 June 2025 expiry showed a maximum call OI of 55.8 lakh contracts at the 26,000 strike price. A maximum put OI of 55.1 lakh contracts was seen at a 24,000 strike price.

Buzzing Index:

The Nifty IT index rose 0.41% to 36,966.30. The index fell 2.09% in the past three trading sessions.

Oracle Financial Services Software (up 2.86%), Mphasis (up 1.44%), LTIMindtree (up 1.25%), Coforge (up 1.1%), Tech Mahindra (up 0.66%), Infosys (up 0.46%), HCL Technologies (up 0.26%) and Wipro (up 0.25%) advanced.

On the other hand, Tata Consultancy Services (down 0.65%) and Persistent Systems (down 0.02%) edged lower.

Stocks in Spotlight:

Indian Energy Exchange (IEX) rose 0.67%. The company informed that it has achieved a monthly electricity volume of 10,946 million units (MU) in May 2025, registering a growth of 14% YoY basis.

L&T Technology Services rose 0.74%. The company announced that it has signed a strategic agreement with Tennant Company, a global leader in industrial cleaning equipment, to accelerate the development of sustainable new products.

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