Indices edge lower in early trade; breadth strong

The key equity benchmarks traded with major losses in early trade. The Nifty traded below the 24,700 level. Pharma, PSU bank, and consumer durables shares advanced, while IT, private bank, and FMCG shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 542.11 points or 0.66% to 81,887.79. The Nifty 50 index slipped 238.40 points or 0.99% to 24,682.10.

In the broader market, the S&P BSE Mid-Cap index shed 0.07% and the S&P BSE Small-Cap index added 0.24%.

The market breadth was strong. On the BSE, 1,779 shares rose and 1,075 shares fell. A total of 155 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 1,246.48 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,448.37 crore in the Indian equity market on 12 May 2025, provisional data showed.

Stocks in Spotlight:

Tata Steel shed 0.03%. The company's consolidated net profit surged to Rs 1,300.81 crore in Q4 FY25 as compared with Rs 611.48 crore in Q4 FY24. Net sales fell 4.7% year on year (YoY) to Rs 55,706.99 crore in Q4 FY25

Ather Energy fell 1.20% after the company reported standalone net loss narrowed to Rs 234.4 crore in Q4 FY25, compared with Rs 283.3 crore reported in Q4 FY24. Revenue from operations jumped 29.17% YoY to Rs 676.1 crore during the quarter ended 31st March 2025.

Raymond slipped 2.70% after the company reported a 60.7% decline in consolidated net profit to Rs 72.13 crore in the quarter ended 31st March 2025 as compared with Rs 183.50 crore in the quarter ended 31st March 2024. Net sales jumped 40.6% YoY to Rs 953.90 crore in Q4 FY25.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.30% to 6.396 as compared with the previous close of 6.370.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.6750, compared with its close of 85.6300 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement rose 0.09% to Rs 92,986.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 101.54.

The United States 10-year bond yield shed 0.09% to 4.453.

In the commodities market, Brent crude for July 2025 settlement shed 16 cents, or 0.25% to $64.80 a barrel.

Global Markets:

Most Asian stocks rose on Tuesday, following a massive rally on Wall Street after the U.S. and China agreed to a trade deal.

In the U.S., major indices posted significant gains. The Dow Jones Industrial Average rose 2.81%, the S&P 500 advanced 3.26%, and the Nasdaq Composite gained 4.35%, with technology stocks ' particularly those with exposure to China, such as Apple and Tesla ' leading the way.

The surge in investor confidence followed a joint announcement on Monday that the U.S. and China had agreed to mutually reduce tariffs on each other's goods for an initial 90-day period. Under the agreement, the U.S. will reduce its tariffs on Chinese imports from 145% to 30%, while China will lower its retaliatory tariffs from 125% to 10%. China also committed to easing certain non-tariff measures, including restrictions on rare earth exports.

The agreement was the result of intensive negotiations held over the weekend in Geneva, where both sides reported substantial progress. A joint statement emphasized the importance of developing a sustainable, long-term, and mutually beneficial economic and trade relationship.

This development marks a significant de-escalation in the prolonged trade conflict that began with the imposition of sweeping tariffs by the United States. The trade tensions had previously disrupted global supply chains, heightened market volatility, and raised concerns over a potential global recession.

However, despite the positive momentum, investor focus is now shifting toward upcoming U.S. inflation data, with the Consumer Price Index (CPI) report due later Tuesday.

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