Indices rebound after three-day slide; Nifty reclaims 24,600

Benchmark indices snapped a three-day losing streak and closed higher, with the Nifty reclaiming the 24,600 mark, supported by broad-based buying across sectors. Positive cues from global markets and optimism over a possible breakthrough in US-China trade talks helped boost sentiment. However, caution lingered ahead of the RBI policy decision due on Friday, June 6. Persistent FII outflows and a stronger dollar index, which climbed above 99.00, also kept gains in check.

The S&P BSE Sensex advanced 260.74 points or 0.32% to 80,998.25. The Nifty 50 index added 77.70 points or 0.32% to 24,620.20. In the previous three sessions, the Sensex and Nifty declined 1.1% and 1.17%, respectively.

Bharti Airtel (up 1.82%), Reliance Industries (up 1.23%) and HDFC Bank (up 0.81%) boosted the indices today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.76% and the S&P BSE Small-Cap index added 0.58%.

The market breadth was positive. On the BSE, 2,071 shares rose and 1,933 shares fell. A total of 151 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 4.89% to 15.75.

The Reserve Bank of India commenced its monetary policy meeting today, 4 June 2025, which will conclude on Friday, 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.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.08% to 6.211 from the previous close of 6.206.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.9050 compared with its close of 85.6125 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.42% to Rs 98,125.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 99.20.

The United States 10-year bond yield shed 0.04% to 4.460.

In the commodities market, Brent crude for August 2025 settlement rose 29 cents or 0.44% to $65.92 a barrel.

Global Markets:

European shares advanced on Wednesday. The HCOB Spain Manufacturing PMI climbed to 50.5 in May 2025 from 48.1 in April and the HCOB Composite PMI in Italy rose to 52.5 in May 2025 from 52.1 in April.

Poland's central bank is set to announce its latest monetary policy decision on Wednesday, which investors are closely watching.

Asian stocks ended higher following a tech-led rally on Wall Street, with Nvidia once again in the spotlight. South Korean stocks led the charge after opposition leader Lee Jae-myung won the presidential election. The Kospi surged over 2%, hitting its highest level since August 2024, as markets cheered expectations of bold fiscal stimulus and a more pragmatic stance on international trade.

Over in Australia, GDP growth came in at 1.3% year-on-year for Q1 2025. It's the same pace as the previous quarter, signaling steady but subdued momentum.

In the US, all three major indices closed higher. The S&P 500 rose 0.58%, the Dow added 0.51%, and the Nasdaq outperformed with a 0.81% gain. Nvidia shares jumped more than 2% as investors continued to digest last week?s blockbuster earnings.

On the policy front, President Trump signed off on higher tariffs, doubling duties on steel and aluminum imports to 50%. He cited the move as a step to deter dumping and strengthen US producers. Notably, the UK was granted an exemption, sticking to the previous 25% rate under a trade deal signed in May.

Labor market data also impressed. The latest JOLTS report showed job openings at 7.39 million, topping estimates of 7.11 million and up from 7.2 million in the previous month. All eyes now turn to Friday?s non-farm payrolls for the next big clue on the Fed?s rate path.

New Listing:

Shares of Scoda Tubes settled at Rs 146.95 on the BSE, representing a premium of 4.96% compared with the issue price of Rs 140.

The scrip was listed at 140, matching the initial public offer (IPO) price. The stock has hit a high of 146.95 and a low of 136. On the BSE, over 4.70 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Garden Reach Shipbuilders and Engineers (GRSE) rallied 6.62% after the company inked a milestone MoU with Norway's Kongsberg Oslo to build India's first indigenous Polar Research Vessel (PRV).

Yes Bank rose 1.44% after the bank announced on Tuesday that its board approved raising up to Rs 15,000 crore through a mix of equity and debt instruments. The capital raise will be split into Rs 7,500 crore via equity and Rs 8,500 crore through debt instruments.

Sun Pharma Advanced Research Company (SPARC) dropped 19.71% after the company announced disappointing results from a key clinical trial. In a regulatory filing, SPARC said that its partner, Sun Pharmaceutical Industries (SPIL), reported top-line results from Phase 2 studies of Vibozilimod (SCD-044), a drug candidate aimed at treating moderate-to-severe psoriasis and atopic dermatitis.

Both trials failed to meet their primary endpoints: a 75% improvement in the Psoriasis Area and Severity Index (PASI75) and Eczema Area and Severity Index (EASI75), respectively, by Week 16.

Servotech Renewable Power System rallied 10.21% after the company secured a prestigious work order from the Rangiya Division of the Northeast Frontier Railway for a 7.8 MW grid-connected solar rooftop project. The order, valued at Rs 33.6 crore, includes a comprehensive 5-year Annual Maintenance Contract (AMC) / Comprehensive Annual Maintenance Contract (CAMC) for multiple buildings within the Rangiya Division.

Maruti Suzuki India rose 0.40%. The company said that it has expanded its solar capacity by 30MWp with new projects at Kharkhoda and Manesar. With these additions, the company's total solar capacity across its locations has enhanced from 49MWp to 79MWp in the last one year.

Ashok Leyland shed 0.23%. The company said that it has bagged an order for supplying 543 units of BS-VI diesel chassis and fully built buses to Tamil Nadu State Transport Corporation. The total consider that would be received by Ashok Leyland is Rs 183.80 crore. The buses have to be delivered during the period from June 2025 to December 2025.

NMDC declined 0.51%. The state-owned iron ore miner informed that it has reduced the prices of its lump ore and fines, with the revised rates coming into effect from 4 June 2025. According to the latest update by the company, the prices for lump ore (65.5%, 10-40mm) have been set at Rs 6,300 per ton, while Fines (64%,-10mm) are priced at Rs 5,350 per ton.

Indian Energy Exchange (IEX) rose 0.42%. The company informed that it has achieved monthly electricity volume of 10,946 million units (MU) in May 2025, registering a growth of 14% YoY basis.

L&T Technology Services advanced 0.86%. 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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