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Sensex, Nifty trim opening gains to trade flat in early deals
Jun-04-2025

Indian equity benchmarks made a positive start on Wednesday following the broadly positive cues from Wall Street overnight as well as firm trade in Asian counterparts amid optimism about amicable trade deals being reached between the US and its trade partners over the weekend after the recent uncertainty. Soon, Sensex and Nifty trimmed most of their opening gains and are trading flat in early deals. Traders avoided to buy stocks ahead of services PMI data to be out later in the day for more directional cues. Also, investors are keeping close eye on the three-day meeting of the Reserve Bank of India's Monetary Policy Committee, starting today. There are expectations that the RBI will cut interest rate. Markets trimmed gains amid foreign fund outflows. The Foreign institutional investors (FIIs) continued their selling on third session on June 3 as they sold equities worth Rs 2,853.83 crore.

On the sectoral front, banking stocks are in focus as Moody's Ratings said India's domestic economic conditions will continue to be supportive for growth, which will help banks preserve their asset quality and maintain systemwide nonperforming loan (NPL) ratio 2-3 per cent in over next 12 months. In stock specific development, Waaree Renewable Technologies rose on winning a solar project worth Rs. 345 crores in Rajasthan.

The BSE Sensex is currently trading at 80736.89, down by 0.62 points after trading in a range of 80713.49 and 80967.68. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.17%, while Small cap index was down by 0.08%.

The few gaining sectoral indices on the BSE were Auto up by 0.44%, TECK up by 0.39%, Telecom up by 0.29% and IT up by 0.16%, while Realty down by 1.24%, Metal down by 0.58%, Oil & Gas down by 0.57%, PSU down by 0.46% and Energy down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.29%, Bharti Airtel up by 1.25%, Mahindra & Mahindra up by 0.76%, Tech Mahindra up by 0.52% and Infosys up by 0.36%. On the flip side, Ultratech Cement down by 0.82%, Trent down by 0.80%, Titan Company down by 0.72%, ICICI Bank down by 0.69% and TCS down by 0.65% were the top losers.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) in its latest 'Economic Outlook' has projected India’s economic growth at 6.3% in FY2025-26 and 6.4% in FY2026-27. As per the report, India projected to continue to experience strong and broadly stable economic growth. Besides, inflation is projected to remain largely benign.

It said private consumption will gradually strengthen, driven by rising real incomes that are helped by moderate inflation, recent tax cuts and a strengthening of the labour market. Investment will be supported by declining interest rates and substantial public capital spending, but higher US tariffs will weigh on exports. Inflation will remain contained at around 4% as economic activity grows around trend. 

With inflation firmly within the target range, it said monetary policy is gradually expected to become more accommodative. Better targeting of energy and fertiliser subsidies, and an overhaul of tax expenditures, could enhance spending efficiency and free resources for other policy priorities. It highlighted that policy rate reductions are expected to cease by end-2025.

It further warned that the risk of increased trade tensions, including the imposition of higher US tariffs on Indian exports, could dampen external demand and harm export-oriented sectors such as textiles, chemicals, and pharmaceuticals. Trade tensions may also discourage private investment in tradable sectors.

The CNX Nifty is currently trading at 24543.60, up by 1.10 points after trading in a range of 24536.50 and 24612.75. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.29%, Tata Motors up by 1.21%, Shriram Finance up by 1.10%, Mahindra & Mahindra up by 0.75% and Tech Mahindra up by 0.57%. On the flip side, Trent down by 0.86%, Adani Enterprises down by 0.83%, Titan Company down by 0.70%, ICICI Bank down by 0.65% and Coal India down by 0.64% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 444.05 points or 2.1% to 21,570.98, Nikkei 225 surged 312.33 points or 0.83% to 37,759.14, Hang Seng advanced 174.32 points or 0.74% to 23,686.81, KOSPI increased 66.20 points or 2.45% to 2,765.17, Jakarta Composite gained 33.28 points or 0.47% to 7,078.10 and Shanghai Composite was up by 14.6 points or 0.43% to 3,376.58, while Straits Times was down by 4.27 points or 0.11% to 3,890.11.
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