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Post Session: Quick Review
Jun-04-2025

Indian markets snapped three-day losing streak and ended in green on Wednesday as investors went for fundamental strong stocks.  After making positive start, markets extended their gains and remained in green till the end of the session as traders got support from positive HSBC Services PMI data. Besides, high-level US delegation will visit India on June 5-6 to advance discussions on the India-US Bilateral Trade Agreement (BTA). The visit comes amid positive progress in ongoing negotiations between the two nations.

Some of the important factors in today’s trade:

India’s services sector maintains gaining momentum: Investors took support as the seasonally adjusted HSBC India Services PMI Business Activity Index grew to 58.8 in May from 58.7 in April. However, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.3 in May as against 59.7 in April.

OECD sees India’s economic growth at 6.3% in FY26: 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.

Foreign fund outflows: Traders overlooked the report that Foreign institutional investors (FIIs) continued their selling on third session on June 3 as they sold equities worth Rs 2,853.83 crore.

Global front: European markets were trading higher ahead of ECB meeting. The European Central Bank (ECB) is widely expected to announce a 25-basis point reduction in its deposit rate, bringing it down to 2.00 percent, before pausing in the July meeting. All Asian equity markets ended higher after data showed the US labour market is holding up despite concerns about risks from President Donald Trump’s tariff war. 

The BSE Sensex ended at 80,998.25, up by 260.74 points or 0.32% after trading in a range of 80,705.18 and 81,087.29. There were 18 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.76%, while Small cap index up by 0.58%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.35%, Utilities up by 0.99%, TECK up by 0.75%, Energy up by 0.69% and Basic Materials was up by 0.56%, while Realty down by 0.77% and Bankex down by 0.03% was the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Eternal up by 3.20%, Bharti Airtel up by 1.66%, Tech Mahindra up by 1.25%, Bharat Electronics up by 1.23% and Reliance Industries up by 1.10%. On the flip side, Bajaj Finserv down by 1.66%, Trent down by 1.29%, Axis Bank down by 0.77%, TCS down by 0.71% and Larsen & Toubro down by 0.62% were the top losers. (Provisional)

Meanwhile, Moody's Ratings in its report on the banking sector has 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. It said asset quality will hold up despite global economic uncertainty. 

It said the government capital expenditure, tax cuts for middle-class income groups to boost consumption and monetary easing will underpin the Indian economy. Also, a low-level of dependency on goods trade will shield it from external risks to an extent. It said the quality of wholesale loans will remain healthy, as companies maintain good profitability and low levels of leverage. Wholesale loans are a key part of Indian banks' loan books, along with retail and agriculture loans.

However, it projected the quality of unsecured retail loans will remain weaker than that of secured ones at least for the next few quarters. It added ‘New NPL formation rates for secured retail loans have broadly stayed low, while those for unsecured loans have risen in the past few quarters. As this trend persists, small private sector banks will continue to have weaker asset quality, than large private banks and public sector banks.’

The CNX Nifty ended at 24,620.20, up by 77.70 points or 0.32% after trading in a range of 24,530.45 and 24,644.25. There were 32 stocks advancing against 18 stocks declining on the index. (Provisional)

The top gainers on Nifty were Eternal up by 3.36%, JIO Financial up by 2.27%, Bharti Airtel up by 1.85%, Indusind Bank up by 1.69% and Reliance Industries up by 1.28%. On the flip side, Bajaj Finserv down by 1.80%, Trent down by 1.49%, Shriram Finance down by 1.09%, Axis Bank down by 0.89% and TCS down by 0.71% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 17.66 points or 0.2% to 8,804.68, France’s CAC rose 68.68 points or 0.88% to 7,832.52 and Germany’s DAX was up by 211.79 points or 0.87% to 24,303.41.

Asian markets settled higher on Wednesday tracking Wall Street’s gains overnight. Meanwhile, expectations of progress in US-China trade negotiations also supported market sentiments. Chinese and Hong Kong shares gained underpinned by expectations of more Chinese stimulus. Japanese shares rose as the yen weakened, boosting the outlook for exporters. Seoul shares and its currency Won strengthened as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,376.20

14.22

0.42

Hang Seng

23,654.03

141.54

0.60

Jakarta Composite

7,069.04

24.22

0.34

KLSE Composite

1,507.97

4.72

0.31

Nikkei 225

37,747.45

300.64

0.80

Straits Times

3,903.88

9.50

0.24

KOSPI Composite

2,770.84

71.87

2.59

Taiwan Weighted

21,618.09

491.16

2.27


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