Barometers edge higher; breadth weak

The domestic equity benchmarks traded with minor gains in early trade as investors reacted to news of Operation Sindoor, a targeted strike by Indian forces on terror sites in response to the recent Pahalgam attack. The operation was described as focused and restrained, avoiding Pakistani military targets. The Nifty traded above the 24,400 level. The market could be volatile due to rising geopolitical tensions.

PSU bank, auto and bank shares advanced while media, FMCG and pharma stocks corrected.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 99.12 points or 0.12% to 80,734.50. The Nifty 50 index added 46.40 points or 0.19% to 24,426.

In the broader market, the S&P BSE Mid-Cap index gained 0.48% and the S&P BSE Small-Cap index increased 0.06%.

The market breadth was weak. On the BSE, 1,105 shares rose and 1,687 shares fell. A total of 114 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 3,794.52 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,397.68 crore in the Indian equity market on 6 May 2025, provisional data showed.

The Indian Armed Forces initiated Operation Sindoor in the early hours of Wednesday, striking nine terrorist infrastructure sites in Pakistan and Pakistan-occupied Jammu and Kashmir. The operation is a direct response to the recent Pahalgam terror attack that killed 25 Indians and one Nepali citizen. Officials emphasized that the strikes were focused, restrained, and non-escalatory, deliberately avoiding Pakistani military facilities. A detailed briefing is expected later today.

Stocks in Spotlight:

Hindustan Petroleum Corporation (HPCL) rose 0.91%. The company reported a 26.1% jump in consolidated net profit to Rs 3415.44 crore despite of a 4.4% decline in net sales to Rs 1,09,074.75 crore in Q4 FY25 over Q4 FY24.

One97 Communication (Paytm) jumped 5.61%. The company reported net loss of Rs 539.80 crore in Q4 FY25 as compared with net loss of Rs 549.60 crore in Q4 FY24. Net sales declined 15.7% YoY to Rs 1,911.50 crore in Q4 FY25.

Radico Khaitan shed 0.63%. The company's consolidated net profit jumped 70.8% to Rs 92.07 crore on 20.9% increase in net sales to Rs 1,304.08 crore in Q4 FY25 over Q4 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.13% to 6.439 as compared with previous close 6.448.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.5600, compared with its close of 84.3550 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement declined 0.84% to Rs 96,669.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.28% to 99.310.

The United States 10-year bond yield slipped 0.32% to 4.304.

In the commodities market, Brent crude for July 2025 settlement gained 36 cents, or 0.58% to $62.51 a barrel.

Global Markets:

The US Dow Jones index futures were currently up by 231 points, signaling a positive opening for US stocks today.

Most Asian indices rose on Wednesday following a series of stimulus announcements from China's central bank and financial regulators. In an effort to support economic growth amid ongoing trade concerns, China will reduced key interest rates and adjusted banking reserve requirements.

The People's Bank of China will cut the seven-day reverse repurchase rate by 10 basis points to 1.4%, a move expected to lower the loan prime rate by a similar margin. Additionally, the central bank will reduce the reserve requirement ratio by 50 basis points, a step projected to inject approximately $138.6 billion into the financial system.

Global investors are also awaiting a key policy announcement from the U.S. Federal Reserve. The Fed is widely expected to maintain interest rates at current levels when its two-day meeting concludes later today. While no major policy shifts are anticipated, markets are closely monitoring for signals regarding the Fed's outlook amid persistent economic uncertainty and the impact of U.S. trade policy.

On Wall Street, major indices closed lower on Tuesday. The Dow Jones Industrial Average declined by 0.95%, the S&P 500 dropped 0.77%, and the NASDAQ Composite fell by 0.87%.

Among individual stocks, Ford Motor Company gained over 2% despite lowering its full-year guidance. The company cited uncertainty related to U.S. trade policy as a significant factor affecting its outlook.

Palantir Technologies shares declined approximately 12% after the company reported quarterly earnings that fell short of elevated market expectations, although it raised its annual revenue guidance.

Tesla shares also dropped more than 1% following a sharp decline in sales volume in Germany for April. Meanwhile, new car registrations in the United Kingdom fell by 62% year-on-year, marking the lowest level in more than two years.

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