Market Commentary - Quick Review
The key equity indices ended with major cuts today, as global sentiment remained cautious. Investor mood was weighed down by lingering uncertainties surrounding the partial U.S.-China trade agreement, which offered limited clarity and left room for potential tariff escalations. The Nifty ended below the 24,900 level. The market was volatile due to the weekly expiry of the Nifty F&O series today. All the sectoral indices on the NSE ended in red.
As per provisional closing data, the barometer index, the S&P BSE Sensex, tanked 823.16 points or 1% to 81,691.98. The Nifty 50 index slipped 253.20 points or 1.01% to 24,888.20.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1.52% and the S&P BSE Small-Cap index fell 1.38%.
The market breadth was weak. On the BSE, 1,286 shares rose and 2,723 shares fell. A total of 142 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.54% to 14.02.
Buzzing Index:
The Nifty Realty index slipped 1.68% to 1,010. The index rose 0.09% in the past trading session.
Anant Raj (down 2.95%), Phoenix Mills (down 2.9%), Godrej Properties (down 2.41%), DLF (down 2.35%), Sobha (down 2.12%), Brigade Enterprises (down 2%), Macrotech Developers (down 1.86%), Prestige Estates Projects (down 1.31%), Raymond (down 0.98%) and Oberoi Realty (down 0.53%) declined.
Stocks in Spotlight:
Sterlite Technologies (STL) surged 9.40% after the company announced it secured a Rs 2,631 crore contract from BSNL for building and maintaining the middle-mile network under BharatNet in Jammu & Kashmir and Ladakh.
Tanla Platforms surged 8.46% after the company announced that its board will meet on Monday, 16 June 2025, to consider a proposal for the buyback of equity shares and other related matters.
SEPC surged 4.21% after it bagged a letter of award worth Rs 650 crore from Parmeshi Urja for the engineering, procurement, and construction (EPC) of a 133 megawatt (AC) solar power project spread across 26 locations in Maharashtra.
Shakti Pumps India advanced 2.76% after the company announced that it has received a letter of award (LoA) worth Rs 114.58 crore from the Maharashtra Energy Department Agency (MEDA).
Zee Entertainment added 1.25% after the company announced that its board will meet on Monday, 16 June 2025, where an investment banker will present and discuss the company's growth initiatives for the next three to five years.
NIBE rose 0.21%. The firm has received a purchase order from one of the leading Infra and Defence companies for the supply of Armor Plate MIL12560 (ARMOUR) for a total consideration of Rs 23.33 crore.
H.G. Infra Engineering fell 1.83%. The company announced that it has been declared the lowest (L1) bidder for the role of Transmission Service Provider (TSP) for the development of an Inter-State Transmission System (ISTS) in the state of Odisha.
Canara Bank fell 1.37%. The bank announced a 50 basis points (bps) reduction in its Repo Linked Lending Rate (RLLR), bringing it down from 8.75% to 8.25%, in line with the Reserve Bank of India's latest repo rate cut.
Global Markets:
US Dow Jones futures were down 265 points, signaling a weak start for Wall Street.
European markets traded lower on Thursday after the UK economy shrank more than expected.
The U.K. economy shrank by a larger-than-expected 0.3% in April from March'the biggest monthly drop since October 2023.
U.K. goods exports to the U.S. dropped 2 billion pounds ($2.71 billion) in April, according to the Office for National Statistics, the biggest monthly drop since records began in 1997.
The value of exports was the lowest since February 2022, with the ONS saying the shift was 'likely linked to the implementation of tariffs on goods imported to the United States.'
U.S. imports to the U.K. fell by 400 million pounds for the month.
Asian stocks ended mixed as investors reacted to U.S. President Donald Trump's statement that a trade agreement with China was 'done,' pending final approval from both himself and Chinese President Xi Jinping. Trump indicated that the deal would include a 55% tariff on Chinese imports, a figure later confirmed by Commerce Secretary Howard Lutnick, who stated that tariffs would remain at that level.
In the U.S., major indices closed lower overnight. The S&P 500 fell 0.3%, while the NASDAQ Composite fell 0.5%. The Dow Jones Industrial Average closed flat at 42,865.77 points.
According to Trump's social media post, the agreement framework includes Chinese supply commitments for magnets and rare earth elements, while the U.S. would continue to permit Chinese students to attend American universities. Trump emphasized that the U.S. would maintain a 55% tariff, while China would impose a 10% tariff in return.
Separately, U.S. inflation data showed the Consumer Price Index (CPI) rose 2.4% year-over-year in May, slightly above April's 2.3%. On a monthly basis, CPI growth eased to 0.1%. Market participants are now focused on upcoming Producer Price Index (PPI) figures and weekly jobless claims for additional signals on the health of the U.S. economy.
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