Barometers turn rangebound; media shares rally for 6th day

The domestic equity indices continued to trade in narrow range with minor gains in mid-morning trade, sustaining upward momentum, as investor sentiment remained positive ahead of the upcoming RBI policy meeting. However, market participants will closely track domestic bond markets, Brent crude oil prices and global trade development. The Nifty traded above the 24,550 mark.

Media shares witnessed buying demand for sixth consecutive trading session.

At 11:26 IST, the barometer index, the S&P BSE Sensex, 176.33 points or 0.22% to 80,913.84. The Nifty 50 index added 51.20 points or 0.21% to 24,595.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.42% and the S&P BSE Small-Cap index added 0.52%.

The market breadth was positive. On the BSE, 2,060 shares rose and 1,680 shares fell. A total of 183 shares were unchanged.

The Reserve Bank of India commenced its monetary policy meeting today, 4 June 2025, which will conclude on 6 June 2025. The meeting is being chaired by Governor Sanjay Malhotra. With inflation showing signs of moderation, market participants are speculating on the possibility of a rate cut.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index rose 58.8 in May from 58.7 in April 2025. Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity.

The HSBC India Composite PMI Output Index came at 59.3 in May, down only marginally from 59.7 in April. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace.

Buzzing Index:

The Nifty Media index advanced 0.98% to 1,743.05. The index rallied 3.14% for the six consecutive trading sessions.

Saregama India (up 7.47%), D B Corp (up 6.36%), Tips Music (up 2.92%), PVR Inox (up 2.68%), Hathway Cable & Datacom (up 0.7%) and Sun TV Network (up 0.13%) advanced.

Stocks in Spotlight:

Maruti Suzuki India rose 0.54%. The company said that has expanded its solar power capacity by 30 megawatt peak (MWp), taking its total installed capacity to 79MWp across locations.

Rajesh Power Services (RPSL) added 2.32% after the company has been declared the successful bidder (L1) for multiple projects under the Madhya Gujarat Vij Company (MGVCL).

Global Markets:

European markets set to open higher as investors await the release of Spanish and Italian services purchasing managers' index (PMI) data, which measures activity in the sector. Poland's central bank will also scheduled to announce its latest monetary policy decision on Wednesday.

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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