Nifty trades above 24,000 level; metal shares in demand
Market sentiment stayed positive following the peace agreement between the United States and Iran, which eased geopolitical concerns and supported risk appetite. However, caution prevailed due to delays in monsoon progress, which have heightened concerns over food inflation. Market participants will closely track key outcomes from the G7 Summit, along with monsoon developments, foreign institutional investor (FII) activity, and inflation trends for further directional cues.
At 14:28 IST, the barometer index, the S&P BSE Sensex advanced 214.65 points or 0.25% to 77,023.13. The Nifty 50 index rose 37.10 points or 0.15% to 24,030.30.
The broader market outperformed the frontline indices. The BSE 150 MidCap Index gained 0.41% and the BSE 250 SmallCap Index added 0.50%.
The market breadth was strong. On the BSE 2,281 shares rose and 1,848 shares fell. A total of 222 shares were unchanged.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 94.5350 compared with its close of 94.6000 during the previous trading session.
In the commodities market, Brent crude for August 2026 settlement gained 41 cents or 0.52% to $79.37 a barrel.
Monsoon Gap Raises Concerns:
India's southwest monsoon has stalled after reaching Kerala, leaving the country with a rainfall deficit of 35% as of 16 June. The shortfall is most severe in central India (63%) and eastern and northeastern regions (43%), while the monsoon has yet to reach Mumbai, more than a week after its normal arrival date. The delay comes amid growing concerns over a developing El Ni?o, which typically weakens monsoon rains.
The India Meteorological Department (IMD) expects the current slowdown to persist for another five to six days due to unfavorable weather conditions. In response, the Centre has placed 150-200 districts under close monitoring, asked states to prepare crop contingency plans, and warned that a weak monsoon could increase food inflation and pressure agricultural output. Despite the concerns, officials said seed, fertiliser and reservoir stocks remain adequate for now.
G7 Summit:
The Group of Seven (G7) is an annual forum comprising the world's leading advanced economies that discusses key global economic, security, and geopolitical issues. The 2026 G7 Summit is being hosted by France in ?vian-les-Bains from 15 to 17 June.
Prime Minister Narendra Modi yesterday addressed the Outreach Session on ??Forging New Partnerships and Rebuilding International Solidarity?, at the G7 Summit in Evian, France.
In his intervention, Prime Minister underlined that, in an interconnected world, where energy, food, health, cyber, and economic security are intertwined, building international partnerships was a necessity for the progress and prosperity of humanity. He further added that, in an uncertain world, trade and technology were being misused for narrow interests, leading to a trust deficit in the international arena.
Among the key developments being closely watched is the meeting between Indian Prime Minister Narendra Modi and U.S. President Donald Trump.
Buzzing Index:
The Nifty Metal Index rose 0.83% to 12,988.35. The index fell 1.55% in the past trading session.
Hindalco Industries (up 2.71%), Vedanta (up 2.18%), Jindal Stainless (up 2.16%), Tata Steel (up 1.49%), Welspun Corp (up 1.22%), Hindustan Zinc (up 1.22%), JSW Steel (up 0.82%), Hindustan Copper (up 0.34%), National Aluminium Company (up 0.29%) and APL Apollo Tubes (up 0.10%) advanced.
On the other hand, Lloyds Metals & Energy (down 0.69%), Jindal Steel (down 0.40%) and Steel Authority of India (down 0.13%) edged lower.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.12% to 6.858 compared with previous session close of 6.866.
MCX Gold futures for 5 June 2026 settlement declined 0.40% to Rs 152,479.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 99.36.
The United States 10-year bond yield gained 0.25% to 4.432.
Stocks in Spotlight:
Dixon Technologies (India) jumped 4.34% after reports indicated that the government may soon approve the company's proposed joint venture with Chinese smartphone maker Vivo.
Tata Capital rose 0.43%. The company said that its board of directors has approved a proposal to raise up to Rs 36,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis, subject to shareholder approval.
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