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Market Commentary - Mid-Session

Benchmarks trade with decent gains; PSU bank shares drop

05-Jun-2025, 02:36
The domestic equity indices continued to trade with modest gains in mid-afternoon trade, supported by positive global sentiment, expectations of a rate cut in the upcoming RBI policy meeting later this week, and sustained foreign fund inflows. While investors await the policy outcome, they are also closely monitoring bond markets, Brent crude trends, and global trade developments. The Nifty traded above the 24,700 level. The market is volatile due to the weekly expiry of the Nifty F&O series today.

PSU bank stocks slip after previous session's gains.

At 14:27 IST, the barometer index, the S&P BSE Sensex, advanced 380.63 points or 0.46% to 81,377.14. The Nifty 50 index jumped 93.40 points or 0.39% to 24,713.60.

In the broader market, the S&P BSE Mid-Cap index rose 0.32% and the S&P BSE Small-Cap index added 0.64%.

The market breadth was positive. On the BSE, 2,301 shares rose and 1,616 shares fell. A total of 158 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 3.14% to 15.25.

Buzzing Index:

The Nifty PSU Bank index fell 0.79% to 7,044.45. The index advanced 0.24% in the past trading session.

Bank of Baroda (down 2.23%), Canara Bank (down 0.95%), Bank of Maharashtra (down 0.94%), UCO Bank (down 0.91%), Indian Overseas Bank (down 0.87%), Bank of India (down 0.87%), Union Bank of India (down 0.84%), Indian Bank (down 0.84%), Punjab National Bank (down 0.83%) and Punjab & Sind Bank (down 0.52%) advanced.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.21% to 6.199 from the previous close of 6.211.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.7700 compared with its close of 85.8700 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.05% to Rs 98,528.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 98.88.

The United States 10-year bond yield shed 0.09% to 4.358.

In the commodities market, Brent crude for August 2025 settlement rose 30 cents or 0.46% to $65.16 a barrel.

Stock in Spotlight:

Man Industries (India) rose 1.03% after the company announced that it had secured a new export order worth Rs 1,150 crore from an international customer for the supply of various types of pipes.