Indices open on flat note; breadth strong

The key equity indices traded near flat line in early trade, mirroring weak global cues. The Nifty traded a below the 25,050 mark. Investors will monitor the economic data and Q4 earnings of the companies across various sectors this week. Consumer durables, pharma, media shares advanced while IT and metal shares declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex, fell 45.22 points or 0.05% to 82,285.37. The Nifty 50 index shed 2.50 points or 0.01% to 25,018.70.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.44% and the S&P BSE Small-Cap index jumped 0.92%.

The market breadth was strong. On the BSE, 2,282 shares rose and 800 shares fell. A total of 153 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 8,831.05 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,187.09 crore in the Indian equity market on 16 May 2025, provisional data showed.

Stocks in Spotlight:

Delhivery rallied 6.70% after the company reported a consolidated net profit of Rs 72.56 crore in Q4 FY25, compared with net loss of Rs 68.47 crore in Q4 FY24. Revenue from operations increased 5.6% YoY to Rs 2,191.57 crore in Q4 FY25.

Gujarat Alkalies & Chemicals jumped 3.45% after the company reported a standalone net profit of Rs 21.38 crore in Q4 FY24, compared with net loss of Rs 21.24 crore posted in the same quarter last year. Revenue from operations jumped 7.4% to Rs 1,075.47 crore in Q4 FY25, compared with Rs 1,001.62 crore in Q4 FY24.

Galaxy Surfactants added 3.74%. The company has reported 2.1% fall in net profit to Rs 75.9 crore despite a 21% increase in total revenue to Rs 1,152.7 crore in Q4 FY25 as compared with Q4 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 1.38% to 6.316 compared with the previous close of 6.222.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6000, compared with its close of 85.5700 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement rose 0.73% to Rs 93,121.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.29% to 100.80.

The United States 10-year bond yield advanced 1.71% to 4.515.

In the commodities market, Brent crude for July 2025 settlement fell 27 cents or 0.41% to $65.14 a barrel.

Global Markets:

Dow Jones futures were down 196 points on Monday, indicating a weak opening for U.S. equities. The decline followed Moody's decision to downgrade the U.S. sovereign credit rating from AAA to AA1 on Friday, citing concerns over the country's rising debt burden, which currently stands at approximately $36 trillion. The ratings agency also noted that proposed tax cuts by President Donald Trump could further strain fiscal conditions.

The downgrade was met with criticism from the Trump administration, which pointed to initiatives aimed at reducing government spending. Among them is the Department of Government Efficiency, led by Elon Musk. However, progress on these initiatives has been limited so far.

Asian markets traded mostly lower on Monday, influenced by the U.S. credit downgrade and mixed economic data from China. The momentum from last week's rally, driven by easing tensions in the U.S.-China tariff dispute, faded toward the end of the week.

Recent data from China showed: Industrial production increased by 6.1% year-on-year in April, surpassing expectations but slowing from the previous month's 7.7% growth. Retail sales rose by 5.1% y-o-y, below the 5.9% growth seen in March. Fixed asset investment grew by 4.0% y-o-y, missing expectations due to continued business uncertainty amid trade tensions.

On Friday, U.S. equities ended higher. The Dow Jones Industrial Average rose 0.78%, reaching a one-month high. The S&P 500 gained 0.70%, and the NASDAQ Composite added 0.52%. Gains were led by the healthcare, utilities, and telecommunications sectors.

However, sentiment data released the same day showed weakness. The University of Michigan's preliminary consumer sentiment index for May came in at 50.8, down from 52.2 in April and below the forecasted increase to 53.4.

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