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Indian markets linger near neutral lines in early noon deals
Jun-05-2026

In a highly volatile session, Indian equity benchmarks were lingering near neutral lines during early afternoon session, on the back of negative cues from other Asian markets along with selling at Metal and Telecom counters, amid mixed signals from ongoing negotiations between the U.S. and Iran as well as uncertainty over the reopening of the Strait of Hormuz. Meanwhile, amid rising geopolitical tensions in West Asia and concerns over inflationary pressures, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent for the fourth time in a row and second time in the current fiscal year.

On the global front, Asian markets were trading lower, after the Ministry of Internal Affairs and Communications of Japan said that the average of household spending in Japan was down 0.5 percent on year in April, coming in at 328,969 yen.

The BSE Sensex is currently trading at 74325.74, down by 34.27 points or 0.05% after trading in a range of 74117.85 and 74717.57. There were 16 stocks advancing against 14 stocks declining on the index.

The top gaining sectoral indices on the BSE were Realty up by 1.57%, Healthcare up by 0.57%, Consumer Durables up by 0.49%, Utilities up by 0.47% and Bankex up by 0.37%, while Metal down by 1.68%, Telecom down by 1.23%, Basic Materials down by 0.88%, TECK down by 0.79% and IT down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.31%, Hindustan Unilever up by 1.56%, Adani Ports & SEZ up by 1.54%, Asian Paints up by 1.12% and Axis Bank up by 1.08%. On the flip side, Tata Steel down by 2.45%, Trent down by 2.20%, HCL Tech. down by 1.56%, TCS down by 1.28% and NTPC down by 1.19% 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 23400.65, down by 15.90 points or 0.07% after trading in a range of 23331.80 and 23516.35. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.28%, Adani Ports & SEZ up by 1.55%, Hindustan Unilever up by 1.51%, Adani Enterprises up by 1.39% and HDFC Life Insurance up by 1.35%. On the flip side, Wipro down by 4.19%, Hindalco down by 2.59%, Tata Steel down by 2.32%, Trent down by 2.21% and Coal India down by 1.74% were the top losers.

All Asian markets were trading lower; KOSPI dropped 478.82 points or 5.87% to 8,160.59, Jakarta Composite plunged 205.1 points or 3.51% to 5,634.69, Taiwan Weighted lost 606.52 points or 1.35% to 45,070.94, Nikkei 225 slipped 845.69 points or 1.27% to 66,625.00, Hang Seng declined 281.4 points or 1.11% to 24,972.00, Shanghai Composite weakened 30.04 points or 0.75% to 4,027.74, and Straits Times fell 15.45 points or 0.3% to 5,052.08.
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