Indices drift higher in early trade; breadth strong

The domestic equity indices traded with minor gains in early trade, as investors showed optimism ahead of the upcoming RBI policy meeting. However, market participants will closely track domestic economic indicators, brent crude oil prices and global trade development. The Nifty traded near the 24,600 level.

Realty, PSU Bank and FMCG shares declined while media, auto and IT stocks advanced

At 09:25 IST, the barometer index, the S&P BSE Sensex, advanced 142.18 points or 0.18% to 80,891.25. The Nifty 50 index added 51.40 points or 0.21% to 24,597.40.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.51% and the S&P BSE Small-Cap index added 0.53%.

The market breadth was strong. On the BSE, 1,814 shares rose and 952 shares fell. A total of 147 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth 2,853.83 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,907.97 crore in the Indian equity market on 3 June 2025, provisional data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.03% to 6.204 from previous close of 6.206.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.8400 compared with its close of 85.6125 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.32% to Rs 97,530.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 99.31.

The United States 10-year bond yield fell 0.29% to 4.449.

In the commodities market, Brent crude for August 2025 settlement shed 20 cents or 0.30% to $65.43 a barrel.

Stocks in Spotlight:

Yes Bank rose 0.77%. The company's board approved raising Rs 16,000 crore through equity and debt securities in one or more tranches. The bank will raise Rs 7,500 crore through equity and Rs 8,500 crore through debt securities.

Zydus Lifesciences added 0.94%. The company's wholly owned subsidiary, Zynext Ventures, has entered into share purchase agreement with Aegnus, USA to acquire 5.9% stake for a total consideration of $16 million.

Ashok Leyland rose 0.38%. The company received order worth Rs 184 crore from Tamil Nadu State Transport Corporation to supply 543 nos. BSVI diesel chassis and fully built buses.

Global Markets:

Most Asian shares climbed following a tech-led rally on Wall Street, with Nvidia once again in the spotlight. South Korean stocks led the charge after opposition leader Lee Jae-myung won the presidential election. The Kospi surged over 2%, hitting its highest level since August 2024, as markets cheered expectations of bold fiscal stimulus and a more pragmatic stance on international trade.

Over in Australia, GDP growth came in at 1.3% year-on-year for Q1 2025. It's the same pace as the previous quarter, signaling steady but subdued momentum.

In the US, all three major indices closed higher. The S&P 500 rose 0.58%, the Dow added 0.51%, and the Nasdaq outperformed with a 0.81% gain. Nvidia shares jumped more than 2% as investors continued to digest last week's blockbuster earnings.

On the policy front, President Trump signed off on higher tariffs, doubling duties on steel and aluminum imports to 50%. He cited the move as a step to deter dumping and strengthen US producers. Notably, the UK was granted an exemption, sticking to the previous 25% rate under a trade deal signed in May.

Labor market data also impressed. The latest JOLTS report showed job openings at 7.39 million, topping estimates of 7.11 million and up from 7.2 million in the previous month. All eyes now turn to Friday's non-farm payrolls for the next big clue on the Fed's rate path.

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