Indices edge higher in early trade; breadth strong

The key equity benchmarks traded with modest gains in early trade. The Nifty traded a tad above the 25,100 level. Barring the Nifty Realty index, all the sectoral indices on the NSE were in green.

At 09:30 IST, the barometer index, the S&P BSE Sensex, added 335.02 points or 0.41% to 82,524.01. The Nifty 50 index rose 100.40 points or 0.40% to 25,105.25.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.60% and the S&P BSE Small-Cap index added 0.47%.

The market breadth was strong. On the BSE, 2,253 shares rose and 785 shares fell. A total of 168 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 1,009.71 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 9,342.48 crore in the Indian equity market on 6 June 2025, provisional data showed.

Economy:

India's forex reserves dropped by $1.237 billion to $691.485 billion for the week ended May 30, the RBI said on Friday.

For the week ended May 30, foreign currency assets'a major component of the reserves'fell $1.952 billion to $584 billion, according to the RBI data.

The gold reserves increased by $723 million to $84.305 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $2 million to $18.569 billion, the apex bank said.

India's reserve position with the IMF was also down by $6 million at $4.395 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Kernex Microsystems (India) hit an upper circuit of 5% after the company said that its joint venture, the Kernex-KEC Consortium, has received a Letter of Acceptance (LoA) worth Rs 182.81 crore from Western Railway. Kernex holds a 70% stake in the consortium.

NIBE added 1.50% after the company entered into a licensing agreement with the Defence Research and Development Organisation (DRDO), Research & Development Establishment (Engineers), Pune. The agreement covers the transfer of technology (ToT) to manufacture modular bridging systems ranging from 14 to 46 meters in length. The contract is valued at Rs 3.76 crore.

Mahindra & Mahindra rose 0.55%. The company's production jumped 27.56% to 89,626 units in May 2025, compared with 70,261 units produced in May 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.81% to 6.230 from previous close of 6.180.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.6600 compared with its close of 85.6875 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.53% to Rs 96,510.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 99.02.

The United States 10-year bond yield fell 0.33% to 4.499.

In the commodities market, Brent crude for August 2025 settlement added $1.31, or 2%, to $66.65 a barrel.

Global Markets:

Asian market moved higher on Monday as investors awaited trade discussions between the United States and China and reviewed the latest economic data from China and Japan.

China's consumer price index declined 0.1% year-on-year in May, unchanged from the previous month, according to government data released Monday. The producer price index fell 3.3% year-on-year, marking the sharpest decline in 22 months and following a 2.7% decrease in April.

Japan's gross domestic product contracted 0.2% year-on-year in the January'March quarter. While better than the preliminary estimate of a 0.7% decline, it reflected a reversal from 2.4% growth in the previous quarter.

Reports indicated that China granted temporary approvals for rare earth exports, and Boeing resumed commercial aircraft deliveries to China.

In the United States, equities closed higher on Friday following the release of nonfarm payroll data and news of upcoming trade talks. The US economy added 139,000 jobs in May, down from April's revised figure of 147,000. March payrolls were also revised lower to 120,000.

Average hourly earnings increased by 0.1% on a monthly basis in May, resulting in a 0.4% annual pace, reflecting ongoing wage pressures.

President Donald Trump stated that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer would meet Chinese officials in London on Monday to discuss trade matters.

Powered by Capital Market - Live News