Benchmarks trade with major losses; European mrkt decline

The key equity indices traded with deep cuts in afternoon trade amid global risk aversion. A spike in U.S. Treasury yields, Moody's downgrade of the U.S. credit outlook, weak bond demand, and a technical correction following the recent rally triggered broad-based selling in Indian equities. Barring the Nifty Media index, all the other sectoral indices on the NSE traded in red.

The Nifty traded below the 24,600 level. The market is volatile due to the weekly expiry of the Nifty F&O series today.

At 13:30 IST, the barometer index, the S&P BSE Sensex, tanked 858.86 points or 1.05% to 80,737.65. The Nifty 50 index tumbled 260.75 points or 1.05% to 24,552.70.

In the broader market, the S&P BSE Mid-Cap index declined 0.46% and the S&P BSE Small-Cap index rose 0.01%.

The market breadth was negative. On the BSE, 1,530 shares rose and 2,268 shares fell. A total of 190 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 0.11% to 17.57.

Gainers & Losers:

Bharti Airtel (up 0.57%), Hero MotoCorp (up 0.20%), Jio Financial Services (up 0.20%), Bharat Electronics (up 0.09%), and IndusInd Bank (up 0.08%) were the major Nifty50 gainers.

Mahindra & Mahindra (down 3.03%), Power Grid Corporation of India (down 2.87%), Coal India (down 2.12%), Hindalco Industries (down 2.09%) and Oil & Natural Gas Corporation (down 2.05%) were the major Nifty50 losers.

Economy:

India's private sector activity witnessed a notable acceleration in May, as indicated by the HSBC Flash India Composite Output Index, which rose to 61.2 from 59.7 in April. The seasonally adjusted index'tracking month-on-month changes in output across both manufacturing and services'signaled a sharp rate of expansion.

This uptick was largely driven by stronger performance in the services sector. Robust inflows of new business, both domestic and international, fueled faster growth in business activity and employment.

Meanwhile, the HSBC Flash India Manufacturing PMI remained largely stable, edging up slightly to 58.3 in May from 58.2 in April. The reading continued to reflect a strong improvement in the overall health of the manufacturing sector.

Stocks in Spotlight:

Colgate Palmolive (India) tanked 5.35% after the company's standalone net profit declined 6.53% to Rs 355 crore in Q4 FY25 as against Rs 379.82 crore posted in Q4 FY24. Revenue from operations fell 1.93% year on year (YoY) to Rs 1,452 crore in the quarter ended 31 March 2025.

Oil and Natural Gas Corporation (ONGC) declined 2.11% after the company's standalone net profit fell 34.66% to Rs 6,448.28 crore in Q4 FY25 as against Rs 9,869.37 crore posted in Q4 FY24. Revenue from operations declined marginally to Rs 34,982.23 crore in Q4 FY25, compared to Rs 34,636.69 crore reported in Q4 FY24.

H.G. Infra Engineering dropped 6.65% after the company reported 22.65% decline in consolidated net profit to Rs 146.98 crore in Q4 FY25 as against Rs 190.03 crore posted in Q4 FY24. Revenue from operations fell 20.33% YoY to Rs 1,360.89 crore in the quarter ended 31 March 2025.

Rupa & Company rose 2.68% after the company's net profit rose 26% to Rs 30.6 crore while net sales rose 4% to Rs 415.5 crore in Q4 March 2025 over Q4 March 2024.

Astral jumped 4.68% after its standalone net profit jumped 3.76% to Rs 190 crore on 3.64% rise in revenue from operations to Rs 1,542.3 in Q4 FY25 over Q4 FY24.

Global Markets:

European shares declined on Thursday as investors will be closely watching earnings reports from BT, British Land, and Tate & Lyle on Thursday. Additionally, preliminary Purchasing Managers' Index (PMI) data for France and the U.K. is scheduled to be released.

Most Asian stocks declined, mirroring overnight losses on Wall Street. Investor sentiment was impacted by concerns that a proposed U.S. budget bill could significantly increase the national debt.

In Japan, the manufacturing sector contracted for the eleventh consecutive month in May, according to preliminary data from the au Jibun Bank flash manufacturing Purchasing Managers' Index (PMI). The index registered at 49.0 for the first three weeks of May, slightly improving from 48.7 in April but remaining below the 50-mark that separates growth from contraction.

In the United States, all three major stock indices closed lower on Wednesday. The Dow Jones Industrial Average fell 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq Composite declined 1.41%. The market selloff was attributed to a sharp rise in Treasury yields amid concerns that the proposed budget bill could increase fiscal pressure.

The proposed legislation, which includes tax cuts and spending measures, is reportedly facing resistance from within the Republican party. Analysts estimate the bill could add between $3 trillion and $5 trillion to the current U.S. debt, which stands at $36.2 trillion. The development follows a recent credit rating downgrade by Moody's, citing concerns over the rising national debt.

In corporate news, Alphabet Inc. shares rose more than 2% following the company's announcement of new AI-related products and initiatives aimed at maintaining its competitive edge in the sector.

Microsoft Corporation traded slightly lower after disclosing that approximately 394,000 Windows devices worldwide had been infected by the Lumma malware.

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