Indian Markets Snap 3-Day Losing Streak; Nifty Ends Above 24,600; Sensex Gains 260 Points

Nifty 50 jumped by 77.70 points (0.32 per cent) to settle at 24,620.20. The Sensex ended higher by 260.74 points (0.32 per cent) at 80,998.25.

Market Update at 4:00 PM: On June 4, Indian equity indices closed higher, snapping their 3-day losing streak. Both the Nifty and the Sensex traded in a 100-point range throughout the day. The Nifty 50 jumped by 77.70 points (0.32 per cent) to settle at 24,620.20. The Sensex ended higher by 260.74 points (0.32 per cent) at 80,998.25.

India's services sector activity saw a slight uptick in May, with the HSBC India Services PMI rising to 58.8 from 58.7 in April, indicating continued expansion driven by strong demand, new client acquisitions, and improved staffing. Input and output inflation remained elevated, and international demand showed one of the strongest improvements in nearly 20 years. However, slower manufacturing growth pulled the overall HSBC India Composite PMI down to 59.3 from 59.7 in April.

Scoda Tubes made its market debut on a steady note, listing at Rs 140 on both NSE and BSE. Meanwhile, Tata Technologies witnessed some selling pressure amid reports suggesting that TPG may be divesting a 2.1 per cent stake through a block deal. Wipro shares edged higher after the company secured a long-term partnership with US-based cybersecurity firm Entrust. On the other hand, Vodafone Idea's stock slipped by 2 per cent following a bulk deal in which Ericsson sold shares worth Rs 428 crore.

Broader indices showed mixed trends. The Nifty Mid-Cap 100 climbed by 0.71 per cent, whereas the Nifty Small-Cap 100 rose by 0.79 per cent. Market breadth remained positive, with 1,650 stocks declining and 1,236 advancing out of 2,978 NSE-listed stocks. While 58 stocks hit 52-week highs, 30 touched new 52-week lows. Furthermore, 105 stocks hit upper circuits and 62 were locked in lower circuits.

Market Update at 12:30 PM: Indian stock markets showed minimal movement in early trading on Wednesday as investors kept a close watch on developments in the U.S.-China trade talks, especially amid ongoing concerns about foreign capital outflows. By 12:24 p.m. IST, the Nifty 50 was trading slightly higher at 24,601.3, up 0.24 per cent, while the Sensex rose 0.22 per cent to 80,917.86.

Equity benchmarks had declined in the previous three sessions, largely due to persistent selling by foreign institutional investors. Of the 13 major sectoral indices, seven were in the red. The small-cap and mid-cap segments hovered around the flat line.

On the global front, U.S. President Donald Trump is expected to speak with Chinese President Xi Jinping later this week, following accusations that China breached a Geneva pact related to trade measures. Meanwhile, the U.S. has doubled tariffs on steel and aluminium imports to 50 per cent, urging other nations to present stronger trade proposals during negotiations on Wednesday.

Asian stocks were mostly positive, with South Korean equities gaining after liberal candidate Lee Jae-myung’s election win sparked optimism over economic stimulus measures.

Back home, IT stocks saw mild gains of 0.3 per cent as the sector benefits from U.S.-linked revenues. However, shares of Aditya Birla Fashion and Retail dropped 11 per cent amid reports that Flipkart was selling its entire 6 per cent stake through a block deal.

Preliminary figures showed that foreign investors pulled out over USD 300 million from Indian equities on Wednesday, adding to the USD 1.4 billion outflow seen over the prior three sessions.

Market Update at 10:20 AM: Indian benchmark indices started slightly higher on Wednesday, reflecting gains across Asian markets, even as new U.S. tariffs on steel and aluminium came into effect. Investors are also watching for a potential conversation between U.S. President Joe Biden and Chinese President Xi Jinping this week, which could influence global trade sentiment.

At 9:15 a.m. IST, the Nifty 50 was up 0.15 per cent at 24,588.65, while the BSE Sensex climbed 0.21 per cent to 80,905.67. All 13 sectoral indices saw mild gains in early trade.

The broader indices, including the midcap and smallcap segments, also rose around 0.2 per cent each, indicating positive market breadth.

Meanwhile, the MSCI Asia ex-Japan index advanced by 0.9 per cent, taking cues from Wall Street’s overnight rally after signals from the White House about an expected U.S.-China leadership call aimed at progressing trade negotiations.

Pre-Market Update at 8:00 AM: On Wednesday, June 4, Indian equity indices are expected to open on a positive note. As of 7:28 AM, the GIFT Nifty was trading around 24,719, up 54 points from its previous close. The rally in Asian markets and gains in US tech stocks overnight helped boost investor sentiment. However, while Domestic Institutional Investors (DIIs) have been consistent net buyers for the past eleven sessions, Foreign Institutional Investors (FIIs) have been net sellers for the last three sessions, which remains a concern for the market.

Today, stainless-steel tubes and pipes manufacturer Scoda Tubes Ltd is set to list its shares on the stock exchange following its recent IPO.

Looking at recent institutional activity, on June 3, FIIs sold equities worth Rs 5,907.97 crore, whereas DIIs purchased shares totalling Rs 2,853.83 crore. The continued buying by DIIs contrasts with the sustained selling pressure from FIIs.

Tuesday saw a sharp decline in Indian markets, driven by worries over high valuations and ongoing foreign fund outflows. The Sensex dropped 636.24 points (0.78 per cent) to close at 80,737.51, while the Nifty 50 fell 174.10 points (0.70 per cent) to 24,542.50.

In Asia, markets rose on Wednesday, supported by the strong performance of US technology stocks the previous night. However, Hong Kong’s Hang Seng index showed signs of a weaker start. Meanwhile, Japan’s services sector growth slowed in May, with the final au Jibun Bank Japan Services PMI falling to 51.0 from 52.4 in April but slightly exceeding the preliminary estimate of 50.8.

On Wall Street, Tuesday closed on a positive note with tech stocks leading the gains amid growing optimism about global trade talks. The Dow Jones Industrial Average rose 214.16 points (0.51 per cent) to 42,519.64, the S&P 500 gained 34.43 points (0.58 per cent) to 5,970.37, and the Nasdaq Composite added 156.34 points (0.81 per cent) to 19,398.96.

Job openings in the US increased in April, reaching 7.391 million, according to the latest JOLTS report, despite a rise in layoffs. Factory orders, however, declined sharply by 3.7 per cent in April after a 3.4 per cent rise in March.

In currency markets, the US dollar saw a slight dip on Wednesday, with the dollar index remaining steady near 99.159. Crude oil prices retreated from recent highs, with Brent crude closing down 0.17 per cent at USD 65.52 per barrel and US West Texas Intermediate (WTI) futures slipping 0.20 per cent to USD 63.28 per barrel.

For today, Manappuram Finance continue to remain under the F&O ban list.

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