Nifty trades below 23,900 level; European mrkt decline
At 13:30 ST, the barometer index, the S&P BSE Sensex, declined 668.61 points or 0.87% to 76,425.46. The Nifty 50 index fell 219.05 points or 0.91% to 23,883.85.
In the broader market, the BSE 150 MidCap Index fell 0.45% and the BSE 250 SmallCap Index shed 0.40%.
The market breadth was weak. On the BSE, 2,720 shares rose and 1,400 shares fell. A total of 195 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 9.14% to 14.02.
Economy:
Growth in India?s eight core industrial sectors slowed to 0.5% in May 2026, marking the second-lowest level in 21 months, according to official data released by the Ministry of Commerce and Industry on June 22, 2026.
Data from the Index of Eight Core Industries showed that five of the eight sectors recorded contractions during the month.
The crude oil sector contracted by 4.6% in May, worsening from a 3.9% decline in April and a 1.8% decline in May 2025. The natural gas sector also remained under pressure, shrinking by 4.9%, its weakest performance in the last three months.
The fertiliser sector contracted for the third consecutive month, declining by 0.9% in May. However, this was an improvement compared with contractions of 8.6% in April and 24.6% in March.
Among the eight core sectors, only steel, cement and electricity registered growth in May 2026.
The electricity sector recorded the strongest growth, with expansion accelerating to 8.7%, helped by a low base as the sector had contracted by 4.7% in May last year.
The steel sector continued to grow but at a slower pace, with growth easing to 5%, the lowest level in 13 months. Meanwhile, the cement sector saw growth improve slightly to 8.4% in May from 8.2% in April.
Overall, the latest data indicate a broad slowdown in core sector activity, with growth supported mainly by electricity, cement and steel output.
India?s business activity expanded at a slower pace in June, with all three key PMI readings moderating, according to the latest flash data released by S&P Global and HSBC.
The HSBC Manufacturing Purchasing Managers? Index (PMI) eased to 54.5 in June from 55.0 in the previous month, indicating a slowdown in factory activity while remaining in expansion territory.
The Services PMI declined to 57.3 in June from 59.8 earlier, reflecting a moderation in service sector growth.
Consequently, the Composite PMI fell to 57.4 in June compared with 59.3 in the previous reading, signalling a softer but continued expansion in overall private sector activity.
Gainers & Losers:
Cipla (up 2.07%), Dr. Reddy's Laboratories (up 1.05%), Sun Pharmaceutical Industries (up 0.72%) and Apollo Hospitals Enterprise (up 0.37%) were the major Nifty50 gainers.
Hindalco Industries (down 3.24%), Infosys (down 3.06%), JSW Steel (down 3.10%) and Tata Consultancy Services (down 2.86%) were the major Nifty50 losers.
Stocks in Spotlight:
Network People Services Technologies (NPST) surged 7.20% after the company has received an order from a Maharatna Public Sector Undertaking (PSU) to develop a UPI Third-Party Application Provider (TPAP) application.
Info Edge (India) rose 3.10% after the company shared a detailed update on its startup investment portfolio, highlighting strong gains from its artificial intelligence (AI), deeptech and consumer technology bets.
Syrma SGS Technology rallied 3.45% after the company entered into an agreement with Kaga Electronics India to develop EMS manufacturing facility in India through a joint venture (JV). Under the agreement, the company and Kaga Electronics will set up a joint venture (JV) company to establish, develop and operate a technologically advanced, state of the art EMS manufacturing facility together in India focusing on Japanese clients. In the JV that is proposed to be incorporated, the company will own 60% of the equity shares for total consideration of Rs 15 crore and Kaga will own 40% of the equity shares of the JV for total consideration of 10 crore.
Global Markets:
European stocks opened sharply in red on Tuesday as early euphoria over a U.S.-Iran peace deal evaporated, giving way to renewed anxieties over higher-for-longer interest rates.
Asian markets traded lower as investors grappled with rising expectations the Federal Reserve may take more aggressive action to tackle inflation later this year.
Oil prices continued to edge lower as supply concerns eased after U.S. Vice President JD Vance said progress had been made in talks with Iran and that the Strait of Hormuz was open.
Investors are grappling with expectations of an accelerated schedule of rate hikes by a more aggressive Federal Reserve under the leadership of new Chair Kevin Warsh.
A key test for the market this week will be Thursday?s release of May?s reading on the personal consumption expenditures price index, the Fed?s preferred inflation gauge. Even excluding volatile food and energy prices, core PCE is expected to increase from April, according to economists polled by FactSet.
Fed funds futures are pricing an implied 54% probability of at least two 25-basis-point hikes before the end of the year, compared with a 15.2% chance a week ago, according to the CME Group's FedWatch tool.
Overnight on Wall Street, the S&P 500 fell on Monday, weighed down by declines in technology stocks. Wall Street also assessed the latest developments in the Iran war negotiations and awaited the release of inflation data closely watched by the Federal Reserve.
The broad market index fell 0.37% to 7,472.79, while the Nasdaq Composite declined 1.32% to end at 26,166.60. The Dow Jones Industrial Average added 148.01 points, or 0.29%.
A key test for the market this week will be Thursday?s release of May?s reading on the personal consumption expenditures price index, the Fed?s preferred inflation gauge. Even excluding volatile food and energy prices, core PCE is expected to increase from April, according to economists polled by FactSet.
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