Indices trade sideways in early trade; breadth positive

The key domestic indices traded sideways in early trade, amid ongoing rising geopolitical tensions between Israel and Iran. Further impacting sentiment was the US Federal Reserve's decision to hold interest rates, with expectations of inflation picking up meaningfully in the coming months. Market direction will likely continue to be shaped by these geopolitical developments, with investors keeping a close eye on crude oil prices and broader global events. The Nifty traded above the 24,800 level.

IT, metal and PSU Bank shares declined while auto, realty and media stocks advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 62.38 points or 0.06% to 81,416.28. The Nifty 50 index rose 6.85 points or 0.03% to 24,820.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.05% and the S&P BSE Small-Cap index added 0.26%.

The market breadth was positive. On the BSE, 1,626 shares rose and 1,136 shares fell. A total of 156 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth 890.93 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,091.34 crore in the Indian equity market on 18 June 2025, provisional data showed.

Stocks in Spotlight:

Vodafone Idea shed 0.61%. The company announced a strategic partnership with AST Mobilespace to expand mobile connectivity across India's unconnected regions.

Aavas Financiers rose 1.13% after the company's board approved the issuance of upto 20,000 non-convertible debentures (NCDs) worth Rs 200 crore on a private placement basis.

Jio Financial Services added 0.12%. The company has acquired 7.90 crore equity shares of Jio Payments Bank from State Bank of India (SBI) for an aggregate consideration of Rs 104.50 crore.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.16% to 6.268 from the previous close of 6.258.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.4950 compared with its close of 86.4300 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement fell 0.27% to Rs 99,265.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 99.01.

The United States 10-year bond yield rose 0.05% to 4.396.

In the commodities market, Brent crude for August 2025 settlement dropped 19 cents or 0.25% to $76.51 a barrel.

Global Markets:

US Dow Jones futures were down 72 points in early trade. Wall Street will be shut on Thursday for the Juneteenth holiday, with regular trading set to resume Friday.

Asian shares slipped on Thursday as investors digested the US Federal Reserve's widely expected decision to keep interest rates unchanged. Adding to the cautious mood: ongoing tensions between Israel and Iran continue to weigh on sentiment.

Eyes are also on the central bank decisions from Taiwan and the Philippines, due later today.

As expected, the Fed held its benchmark rate steady at 4.25%-4.5% on Wednesday, marking no change since December. Fed Chair Jerome Powell indicated the committee would wait to assess the inflationary impact of President Trump's tariff measures before considering any policy shifts.

Despite the hawkish pause, the Fed still pointed to two rate cuts by the end of the year.

Geopolitical concerns remain front and center. Investor nerves were further rattled after Iran's Supreme Leader Ayatollah Ali Khamenei dismissed President Trump's calls for unconditional surrender. His remarks, delivered via a televised statement on Wednesday, were his first since Friday, when Israel escalated its offensive against Iran.

Back on Wall Street, US equities ended mixed on Wednesday. The Dow slipped 0.10%, the S&P 500 edged down 0.03%, while the Nasdaq bucked the trend with a 0.13% gain.

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