Sensex tanks 540 pts; Nifty below 25,000 level; European mrkt decline

The key equity indices traded with moderate losses in the afternoon trade, amid the weekly expiry of Nifty 50 F&O contracts, as global sentiment remained cautious. Investors are digesting the limited clarity offered by the partial U.S.-China trade deal, which leaves the door open for renewed tariff tensions.

The Nifty traded below the 25,000 level. Media and pharma stocks gained, while all other sectoral indices traded in the red.

At 13:30 IST, the barometer index, the S&P BSE Sensex, declined 540.32 points or 0.66% to 81,984.76. The Nifty 50 index fell 161.95 points or 0.64% to 24,983.30.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.86% and the S&P BSE Small-Cap index shed 0.63%.

The market breadth was negative. On the BSE, 1,581 shares rose and 2,297 shares fell. A total of 164 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.91% to 13.79.

Gainers & Losers:

Bajaj Finserv (up 1.99%), Wipro (up 1.13%), Apollo Hospitals Enterprise (up 1.07%), Tech Mahindra (up 1.06%) and Oil and Natural Gas Corporation (up 0.98%) were the major Nifty50 gainers.

Tata Motors (down 1.85%), Tata Steel (down 1.71%), Shriram Finance (down 1.57%), Coal India (down 1.48%) and Hindustan Unilever (down 1.40%) were the major Nifty50 Losers.

Stocks in Spotlight:

Canara Bank shed 0.26%. The bank announced a 50 basis points (bps) reduction in its Repo Linked Lending Rate (RLLR), bringing it down from 8.75% to 8.25%, in line with the Reserve Bank of India's latest repo rate cut.

Shakti Pumps India advanced 3.60% after the company announced that it has received a letter of award (LoA) worth Rs 114.58 crore from the Maharashtra Energy Department Agency (MEDA).

Sterlite Technologies (STL) surged 14.27% after the company announced it secured a Rs 2,631 crore contract from BSNL for building and maintaining the middle-mile network under BharatNet in Jammu & Kashmir and Ladakh.

H.G. Infra Engineering shed 0.31%. The company has announced that it has been declared the lowest (L1) bidder for the role of Transmission Service Provider (TSP) for the development of an Inter-State Transmission System (ISTS) in the state of Odisha.

NIBE rose 1.25% after the firm has received a purchase order from one of the leading Infra and Defence Company for supply of Armor Plate MIL12560 (ARMOUR) for a total consideration of Rs 23.33 crore.

Tanla Platforms surged 9.58% after the company announced that its board will meet on Monday, 16 June 2025 to consider a proposal for the buyback of equity shares and other related matters.

Global Markets:

US Dow Jones futures were down 127 points, signaling a weak start for Wall Street.

European markets opened lower on Thursday after UK economy shrinks more than expected.

The U.K. economy shrank by a larger-than-expected 0.3% in April from March ' the biggest monthly drop since October 2023 ' following 0.2% growth in March.

U.K. goods exports to the U.S. dropped 2 billion pounds ($2.71 billion) in April, according to the Office for National Statistics, the biggest monthly drop since records began in 1997.

The value of exports was the lowest since February 2022, with the ONS saying the shift was 'likely linked to the implementation of tariffs on goods imported to the United States.'

U.S. imports to the U.K. fell by '400 million for the month.

Asian stocks traded mixed as investors reacted to U.S. President Donald Trump's statement that a trade agreement with China was 'done,' pending final approval from both himself and Chinese President Xi Jinping. Trump indicated that the deal would include a 55% tariff on Chinese imports, a figure later confirmed by Commerce Secretary Howard Lutnick, who stated that tariffs would remain at that level.

In the U.S., major indices closed lower overnight. The S&P 500 fell 0.3%, while the NASDAQ Composite fell 0.5%. The Dow Jones Industrial Average closed flat at 42,865.77 points.

According to Trump's social media post, the agreement framework includes Chinese supply commitments for magnets and rare earth elements, while the U.S. would continue to permit Chinese students to attend American universities. Trump emphasized that the U.S. would maintain a 55% tariff, while China would impose a 10% tariff in return.

Separately, U.S. inflation data showed the Consumer Price Index (CPI) rose 2.4% year-over-year in May, slightly above April's 2.3%. On a monthly basis, CPI growth eased to 0.1%. Market participants are now focused on upcoming Producer Price Index (PPI) figures and weekly jobless claims for additional signals on the health of the U.S. economy.

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