Indian Markets Open Flat as Investors Book Profits; Mid and Small Caps Outperform

At 9:25 a.m. IST, the Nifty 50 was nearly unchanged, slipping marginally by 0.01 per cent to 25,637, while the BSE Sensex edged down 0.05 per cent to 84,024.65.

Market Update at 09:45 AM: India’s equity markets began the week on a steady note, showing little movement after last week’s strong performance, which was supported by easing geopolitical concerns, positive global cues, and renewed foreign investment.

At 9:25 a.m. IST, the Nifty 50 was nearly unchanged, slipping marginally by 0.01 per cent to 25,637, while the BSE Sensex edged down 0.05 per cent to 84,024.65.

Though several sectors saw gains, they were largely offset by profit booking in financial and automobile stocks. On the other hand, the broader market showed strength, with the Nifty Smallcap and Nifty Midcap indices climbing 0.8 per cent and 0.4 per cent, respectively.

Meanwhile, Asian equities also remained quiet, and the U.S. dollar weakened as expectations grew for deeper rate cuts following softer-than-expected U.S. employment data.

Last week, both the Sensex and Nifty ended higher, driven mainly by gains in financial and metal stocks, and are currently trading around 2.5 per cent below their all-time highs from September.

Pre-Market Update at 8:00 AM: Indian equity benchmarks, the Nifty 50 and Sensex, are expected to open higher on Monday, June 30, following upbeat cues from global markets.

At 7:15 AM, the GIFT Nifty hovered around 25,768—just 11 points lower than its previous close—signalling a mildly positive to flat start for domestic markets.

Asian markets opened strong, tracking gains from Wall Street, where all three major US indices ended last week in the green. This global momentum is expected to support sentiment back home.

Investors will closely watch developments such as updates on US-China trade negotiations, ongoing geopolitical events like the Israel-Iran situation, the launch of fresh IPOs, the activity of institutional investors, global crude oil price fluctuations, and macroeconomic indicators from both domestic and international fronts.

Foreign Institutional Investors (FIIs) returned as net buyers over the last two sessions, while Domestic Institutional Investors (DIIs) turned net sellers. On Friday, June 27, FIIs purchased equities worth Rs 1,397.02 crore, while DIIs offloaded shares worth Rs 588.93 crore.

Indian stock markets extended their winning streak for the fourth straight session. The Nifty 50 moved past the 25,600 mark, adding 88.80 points (0.35 per cent) to close at 25,637.80. The Sensex rose by 303.03 points (0.36 per cent), settling at 84,058.90.

Asian indices started the week positively. Japan’s Nikkei 225 climbed 1.68 per cent, with the Topix advancing 0.96 per cent. South Korea’s Kospi was up 0.85 per cent, while the Kosdaq remained largely unchanged. Investors across Asia remain focused on trade talks and key economic data.

Japan’s factory output in May rose 0.5 per cent from April, falling short of the expected 3.5 per cent rise. Manufacturers estimate a marginal 0.3 per cent uptick in June followed by a 0.7 per cent dip in July.

US equity markets ended Friday’s session at record levels. The Dow surged 432.43 points (1 per cent) to 43,819.27, while the S&P 500 climbed 32.05 points (0.52 per cent) to 6,173.07. The Nasdaq added 105.55 points (0.52 per cent) to close at 20,273.46. All three indices posted weekly gains.

The US Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent in May, matching April’s pace. On a yearly basis, it stood at 2.3 per cent in May, up slightly from 2.2 per cent in April. However, consumer spending in May dipped unexpectedly by 0.1 per cent, following a 0.2 per cent increase in April.

US Treasury Secretary Scott Bessent reported headway in trade discussions with China, particularly in rare earth materials and magnets. He also mentioned that trade deals with 18 key countries may be finalised by September 1.

Crude prices declined due to easing Middle East tensions and speculation of a production hike by OPEC. Brent fell 0.97 per cent to USD 67.11/barrel, while WTI slipped 1.31 per cent to USD 64.66/barrel.

Gold prices dropped to a one-month low as improving US-China relations weakened demand for safe-haven assets. Spot gold declined 0.3 per cent to USD 3,264.64/oz, marking its lowest since May 29.

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Disclaimer: The article is for informational purposes only and not investment advice.