Indices edge lower in early trade; breadth strong; VIX rallies 2.74%

The domestic equity indices traded with minor losses in early trade as investors remained cautious in the absence of strong global or domestic triggers. The Nifty traded below the 24,800 level. IT, PSU bank and realty shares advanced while FMCG, consumer durables and auto shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, slipped 192.96 points or 0.24% to 81,339.40. The Nifty 50 index shed 25.60 points or 0.10% to 24,770.15.

In the broader market, the S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index added 0.29%.

The market breadth was strong. On the BSE, 1,596 shares rose and 788 shares fell. A total of 140 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 348.45 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 10,104.66 crore in the Indian equity market on 27 May 2025, provisional data showed.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 2.74% to 18.96.

Economy:

Foreign direct investment in India fell 24.5% year-on-year to $9.34 billion in the January-March quarter of 2024-25 but grew 13% at $50 billion during the entire previous financial year, according to the government data released on Tuesday. FDI inflows during January-March 2023-24 stood at $12.38 billion. These were $44.42 billion in the full 2023-24 fiscal. During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6% year-on-year to $10.9 billion due to global economic uncertainties.

IMD Forecasts:

The India Meteorological Department (IMD), under the Ministry of Earth Sciences, has issued its updated Long-Range Forecast for the 2025 Southwest Monsoon season (June'September) along with the Monthly Rainfall and Temperature Outlook for June 2025. According to the forecast, the seasonal rainfall across the country as a whole is likely to be 106% of the Long Period Average (LPA), with a model error of '4%, indicating a high probability of above-normal rainfall during the monsoon season.

Regionally, the rainfall is most likely to be above normal over Central India and the South Peninsular region, while Northwest India is expected to experience normal rainfall levels (ranging between 92-108% of LPA). In contrast, Northeast India is likely to receive below-normal rainfall (<94% of LPA).

Stocks in Spotlight:

Aurobindo Pharma shed 1.30% after the company's consolidated net profit fell 0.6% to Rs 903.47 crore despite of Life Insurance Corporation of India (LIC) reported 38.1% jump in consolidated net profit to Rs 19,038.67 crore, despite a 3.6% decline in total income to Rs 2,44,088.33 crore in Q4 FY25 over Q4 FY24.

JK Lakshmi Cement rose 1.10% after the company's consolidated net profit jumped 13.9% to Rs 183.54 crore on 6.6% increase in net sales to Rs 1,897.62 crore in Q4 FY25 over Q4 FY24.

Numbers to Track:

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.6300, compared with its close of 85.4025 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement rose 0.13% to Rs 95,270.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 99.73.

The United States 10-year bond yield added 0.81% to 4.470.

In the commodities market, Brent crude for July 2025 settlement rose 41 cents or 0.64% to $64.50 a barrel.

Global Markets:

Asian market had a mixed start on Wednesday. Australia's inflation held steady at 2.4% in April, no change since February, while New Zealand's central bank surprised with a rate cut, trimming the benchmark to 3.25%.

Across the Pacific, Wall Street lit up on Tuesday. A decision by Trump to delay slapping 50% tariffs on the EU helped revive risk appetite, and investor mood got another lift from a sharp jump in US consumer confidence. After five straight months of decline, confidence snapped back hard in May.

The Dow Jones Industrial Average climbed 1.78%, the S&P 500 jumped 2.05%, and the Nasdaq surged 2.47%, powered by tech heavyweights like Tesla. All three indexes ended a four-day losing streak in style.

This market rebound is also riding on hopes of easing trade tensions between the US and China, as the Trump administration works to ink deals with multiple key economies.

All eyes are now on NVIDIA, which is set to report Q1 earnings after the closing bell on Wednesday. Analysts are betting on a strong showing. The chipmaker's stock rallied 3.2% during the session and held steady in after-hours trading.

Meanwhile, the Conference Board reported that US consumer confidence soared in May, with the index jumping to 98 from April's 85.7, a level not seen since May 2020.

Powered by Capital Market - Live News