Indices edge lower in early trade; breadth strong

The key equity benchmarks traded with modest cuts in early trade. The Nifty traded below the 24,650 mark. Realty, private bank, and pharma stocks declined, while media, metal, and auto shares advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 237.68 points or 0.29% to 81,092.88. The Nifty 50 index fell 55.55 points or 0.23% to 24,611.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.36% and the S&P BSE Small-Cap index added 0.60%.

The market breadth was strong. On the BSE, 1,976 shares rose and 849 shares fell. A total of 153 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 931.80 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 316.31 crore in the Indian equity market on 14 May 2025, provisional data showed.

Stocks in Spotlight:

Eicher Motors rose 0.48%. The company reported a 27.25% increase in consolidated net profit to Rs 1,362.15 crore in Q4 FY25 as against Rs 1,070.45 crore posted in Q4 FY24. Total revenue from operations rose 23.4% YoY to Rs 5,150.38 crore in the quarter ended 31 March 2025.

Tata Power Company rose 0.13%. The company's consolidated net profit jumped 16.49% to Rs 1,042.83 crore on a 7.88% increase in revenue from operations to Rs 17,095.88 crore in Q4 FY25 over Q4 FY24.

Tilaknagar Industries surged 10.97% after the company reported a 145.9% jump in consolidated net profit to Rs 77.35 crore on 13.1% increase in net sales to Rs 405.81 crore in Q4 FY25 over Q4 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.22% to 6.351 compared with previous close 6.337.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6200, compared with its close of 85.3250 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement shed 0.74% to Rs 91,585.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 100.84.

The United States 10-year bond yield rose 0.11% to 4.533.

In the commodities market, Brent crude for July 2025 settlement shed 1.28 cents, or 1.94% to $64.81 a barrel.

Global Markets:

The US Dow Jones index futures were currently down by 164 points, signaling a weak opening for US stocks today.

Most Asian stocks rose on Thursday, supported by signs of easing trade tensions between the United States and China. While markets appear to have priced in the peak of tariff-related macroeconomic stress, investor sentiment remains cautious amid softening U.S. economic indicators.

On Wall Street, major indexes posted mixed performances on Wednesday. The S&P 500 gained 0.1%, and the NASDAQ Composite rose 0.7%, driven largely by sustained strength in technology stocks. The Dow Jones Industrial Average declined 0.2%.

Investor optimism around artificial intelligence continued to support technology shares. Several AI-related chipmakers and infrastructure firms delivered strong earnings and forward guidance. Server manufacturer SuperMicro surged over 15%, while cloud computing company CoreWeave rose 6.6% during the session. However, CoreWeave declined 7.9% in after-hours trading following comments that increased capital expenditures may compress its profit margins.

Technology stocks have been the primary drivers of this week's gains, particularly after the U.S. and China announced a meaningful step back from ongoing tariff escalations. Broader market sectors also advanced on the news, though their momentum slowed by Wednesday.

Market participants are now focused on the upcoming U.S. Producer Price Index (PPI) data, expected on Thursday, which is anticipated to show a moderation in factory-gate inflation for April.

Additionally, attention is centered on a scheduled speech by Federal Reserve Chair Jerome Powell later on Thursday. Powell is expected to provide further insight into the Fed's monetary policy framework and its approach to achieving the dual mandate of maximum employment and price stability, particularly in the context of unchanged interest rates and continued economic uncertainty highlighted during last week's policy decision.

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