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Indices trade flat with positive bias amid volatility in late morning deals
Jun-05-2026

Domestic equity markets traded flat with a positive bias amid volatility in late morning deals, on account of buying in stocks of Bajaj Finance, Hindustan Unilever, Eternal, and Adani Ports. However, gains were capped as the Reserve Bank of India (RBI) has lowered GDP growth projection to 6.6% from 6.9% earlier for the current fiscal (FY27) and raised CPI inflation projection to 5.1% for FY27, higher from earlier estimate of 4.6%. further, rising crude oil prices and weak cues from other Asian markets weighed on the domestic sentiments. Public sector banks, namely State Bank of India, Punjab National Bank, and Bank of Baroda, were trading higher after the Central government issued the Income-tax (Amendment) Ordinance 2026, exempting foreign investors from paying taxes on interest income earned from government securities as well as on capital gains.

On the global front, Asian markets were trading mostly in red on uncertainty over U.S.-Iran peace deal. Hezbollah leader Naim Qassem rejected a U.S.-brokered agreement between Israel and the Lebanese government to halt the fighting. Iran has made a ceasefire in Lebanon a condition for any peace deal with Washington. Back home, on the BSE sectoral front, traders were seen piling up positions in Realty, Utilities, Consumer Durables, Bankex and Industrials, while selling was witnessed in Metal, Telecom, Energy, TECK and Basic Materials.

The BSE Sensex is currently trading at 74437.43, up by 77.42 points or 0.10% after trading in a range of 74117.85 and 74717.57. There were 17 stocks advancing against 13 stocks declining on the index.

The top gaining sectoral indices on the BSE were Realty up by 1.69%, Utilities up by 0.75%, Consumer Durables up by 0.64%, Bankex up by 0.58% and Industrials up by 0.58%, while Metal down by 0.97%, Telecom down by 0.77%, Energy down by 0.54%, TECK down by 0.42% and Basic Materials down by 0.37% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.37%, Adani Ports up by 1.52%, Hindustan Unilever up by 1.52%, Eternal up by 1.42% and Axis Bank up by 0.91%. On the flip side, Trent down by 2.71%, Tata Steel down by 1.90%, HCL Technologies down by 1.15%, Interglobe Aviation down by 0.98% and TCS down by 0.74% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that cement demand is likely to moderate to mid-single-digit levels in FY27 from about 8 per cent in FY26 amid inflationary pressures and the possibility of an El Nino weather event. However, it stated the sector is likely to witness nearly 100 million tonnes (MT) of capacity additions in FY26, with utilisation levels estimated at 68-69 per cent in FY27. It mentioned ‘While the sector will witness a significant input cost inflation given the increase in fuel costs, the moderate demand environment, coupled with continued capacity additions, can restrict the increase in cement realisations to low-to-mid single digits.’ 

Moreover, it said ‘With only a partial pass-through of input cost increase, the EBITDA/MT could decline around 15 per cent year-on-year, after a similar recovery in FY26’. It added that this will impact small companies (tier-2 players) more. Large Tier 1 players have adequate balance sheet headroom and financial flexibility to absorb the impact without impacting the credit profile, but tier-2 players could witness stress, given their concentrated geographical presence and limited financial headroom. This will also create potential inorganic expansion opportunities in the cement sector, which is already witnessing consolidation.

Further, it said ‘the pace of sector consolidation could taper as players concentrate on ramping up acquired assets and executing announced capex.’ It stated that competitive intensity in the sector is expected to stay elevated in the near term, although early signs of capital expenditure rationalisation by some leading players are a positive development for the industry. Demand for cement from the infrastructure sector is expected to be supported by stronger growth in central government capex and continued growth in state capex, although execution of the budgeted capex in the current environment will be a critical factor. Furthermore, it said ‘On the housing side, rural demand is likely to be supported by factors like real wage growth, goods and services tax (GST) cut and the welfare schemes of state governments.  Besides, it has maintained a stable rating outlook on its rated cement portfolio for FY27.

The CNX Nifty is currently trading at 23418.35, up by 1.80 points or 0.01% after trading in a range of 23331.80 and 23516.35. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 3.29%, HDFC Life up by 2.07%, Adani Enterprises up by 1.94%, Shriram Finance up by 1.78% and Adani Ports up by 1.40%. On the flip side, Wipro down by 4.10%, Trent down by 2.76%, Hindalco down by 2.42%, Coal India down by 2.17% and Tata Steel down by 1.89% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 740.69 points or 1.1% to 66,730.00, Taiwan Weighted lost 646.37 points or 1.42% to 45,031.09, Jakarta Composite plunged 147.63 points or 2.59% to 5,692.16, KOSPI dropped 372.23 points or 4.31% to 8,267.18, Hang Seng declined 249.4 points or 0.99% to 25,004.00 and Straits Times fell 9.3 points or 0.18% to 5,058.23. However, Shanghai Composite strengthened 0.18 points or 0% to 4,057.96.
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