Nifty ends lower as risk sentiment deteriorates
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Market Overview
Nifty opened with a 70-point gap-up at 24,786 and moved higher to touch 24,845 in the opening minutes. However, it soon slipped to the 24,630–640 zone within the first hour. The index then staged a strong rebound to 24,730 but faced renewed selling pressure, consolidating between 24,650 and 24,600 until 12:45 PM. In the second half, weakness intensified with Nifty testing the 24,500 level before settling into a narrow range between 24,540 and 24,580 in the final hour. The index eventually closed at 24,542.50, down 0.7% for the day.
While domestic fundamentals remain strong—driven by high GDP growth and easing inflation—rising global macroeconomic uncertainty and escalating geopolitical tensions continue to weigh on sentiment. Investors are also keeping a close watch on developments related to the India-U.S. trade deal.
Broader Market Performance:
Broader markets had a weak session today. Of the 2,999 stocks traded on the NSE, 1,224 advanced, 1,696 declined, and 79 remained unchanged.
Sectoral Performance:
Nifty Realty emerged as the top gainer among sectoral indices with a 1.20% rise, while Nifty Energy was the worst performer, falling by 1.07%. Out of the 12 sectoral indices listed, 2 sectors closed in the green (Nifty Realty and Nifty Media), whereas 10 sectors ended in the red, reflecting broad-based weakness in the market.
Note: The above numbers for Commodity futures were taken around 5 pm. Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 5th June:
The maximum Call Open Interest (OI) is observed at 25,000, followed closely by 24,800, suggesting strong resistance at 25,000 - 25,100 levels.
The maximum Put Open Interest (OI) is observed at 24,600, followed closely by 24,500, suggesting strong support at 24,500 to 24,400 levels.
Note: OI is subject to multiple interpretations, but generally, an increase in the call OI indicates resistance in a falling market, and an increase in the put OI indicates support in a rising market.
Source: Sensibull
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What’s happening in India
Adani Group stocks declined after a WSJ report said U.S. authorities are probing possible Iran sanctions violations involving LPG shipments through Mundra port. Adani denied any wrongdoing or awareness of an investigation. The probe adds pressure as the group continues to rebuild investor trust. Dive deeper
JSW Neo Energy is seeking a $675 million loan to fund its $1.5 billion acquisition of O2 Power from EQT and Temasek. Deutsche Bank and MUFG are leading the five-year syndicated deal. The move supports JSW’s plan to reach 20 GW of renewable capacity by 2030. Dive deeper
Vodafone Idea expects further tariff hikes as it plans ₹6,000 crore capex for FY26 to expand 5G and 4G coverage. CEO Akshaya Moondra highlighted unsustainable data pricing and low ARPU as key concerns. He also clarified that despite a 49% stake, the government won't seek a board seat or management role. Dive deeper
Yes Bank saw 3% equity change hands via block deals, reportedly by a PE investor. This followed speculation around SMBC's potential stake purchase, which the bank denied. The board is set to evaluate fundraising options. Dive deeper
Ola Electric saw a 3.2% stake change hands via a block deal, reportedly involving Hyundai as the seller. The transaction comes amid ongoing concerns about the company’s financial health and weak Q4 results. Dive deeper
L&T has bagged orders worth ₹1,000–2,500 crore from the Rajasthan government for rural water supply and fluorosis mitigation projects. The scope includes 5,251 km of pipelines, reservoirs, and pump houses across Jhunjhunu and Ajmer districts. Dive deeper
GQG Partners raised its stake in ITC to 5.47% via a bulk deal, up from 4.96%, as disclosed in a BSE filing. The move follows British American Tobacco’s sale of a 2.5% stake in ITC, reducing its holding to 22.9%. Dive deeper
Meenakshi Group launched Meenakshi Alternates (M-Alts) and a ₹700 crore Category II AIF focused on real estate in top Indian cities. The fund follows a hybrid debt-equity model with a six-year horizon and targets 6–8 high-conviction deals. Meenakshi has committed up to 20% as sponsor capital, with three deals under due diligence. Dive deeper
Manipal Group has secured a $600 million (₹5,123 crore) investment from KKR to support its long-term growth and expansion plans. The deal was arranged by KKR Capital Markets and backed by KKR’s private credit and insurance arms. Dive deeper
United Breweries will shut its Mangaluru brewery by end-June as part of a strategic capacity consolidation plan. The company is expanding operations at its Mysuru unit to improve supply chain efficiency in Karnataka. It assured that the closure will not impact business performance in the state. Dive deeper
Air India and Air Mauritius have expanded their codeshare agreement to cover 17 routes, enhancing connectivity between India and destinations like South Africa, Reunion, and Madagascar via Mauritius. The move aims to simplify travel across these regions through a single-ticket booking system. Dive deeper
The sugar industry has sought higher ethanol prices and extended blending targets as its share in the national programme dropped to a projected 28% in 2024-25. Mills prefer sugar sales over ethanol due to better returns. This has led to under-utilisation of India’s 952 crore litre ethanol capacity. Dive deeper
Starlink is close to getting its Indian licence, with the telecom ministry confirming a Letter of Intent has been issued. Final approval is expected by mid-June. The company plans a phased rollout targeting premium users within 9 - 12 months. Dive deeper
Biocon has received CDSCO approval for its generic version of Victoza (Liraglutide), used to treat Type 2 diabetes in patients aged 10 and above. This marks its first vertically integrated GLP-1 product in India. Dive deeper
What’s happening globally
WTI crude rose to around $63.1 per barrel as geopolitical tensions and supply disruptions supported prices. Peace talks between Russia and Ukraine stalled, Iran signaled rejection of a U.S. nuclear proposal, and wildfires in Canada curtailed output. OPEC+ maintained steady production plans for July. Dive deeper
Gold slipped below $3,360/oz, retreating from a near four-week high as the US dollar edged up. This followed a sharp 2.8% surge amid heightened trade tensions and geopolitical risks. Markets now await a potential Trump-Xi call and further developments in Russia-Ukraine peace talks. Dive deeper
The ISM Manufacturing PMI fell to 48.5 in May, marking a third straight month of contraction and the sharpest decline since November 2024. Output, new orders, and exports weakened amid trade policy uncertainty and elevated costs. Inventory buildup ahead of tariffs reversed, while supply delays persisted. Dive deeper
China’s Caixin Manufacturing PMI fell to 48.3 in May, marking the first contraction in eight months and the steepest drop since September 2022. Output and new orders declined sharply, while foreign sales hit a 10-month low. Despite weak demand, business confidence improved on hopes of better trade conditions. Dive deeper
Copper futures fell over 2% to $4.70/lb after weak Chinese manufacturing data signaled softer demand. A private survey showed factory activity hit a two-year low amid falling export orders and tariff pressures. This follows Monday’s 5% surge on fears copper could face U.S. trade action. Dive deeper
The Shanghai Composite rose 0.43% and the Shenzhen Component added 0.16%, rebounding despite weak manufacturing data and rising U.S.-China trade tensions. Speculation of a possible Trump-Xi dialogue supported sentiment. Dive deeper
Turkey’s annual inflation eased to 35.41% in May 2025, the lowest since November 2021, driven by broad-based moderation in prices, especially food and housing. Core inflation also fell to 35.37%, while monthly CPI rose just 1.53%, below expectations. Transport was the only category to see rising inflation. Dive deeper
Eurozone inflation eased to 1.9% in May 2025, below expectations and under the ECB’s 2% target for the first time since September. Core inflation fell to 2.3%, led by a sharp drop in services inflation. The data strengthens expectations of a 25 bps rate cut later this week. Dive deeper
South Africa’s economy grew 0.1% in Q1 2025, below expectations, with agriculture leading gains while manufacturing and mining dragged due to infrastructure issues. Household consumption supported growth, but fixed investment and government spending declined. Yearly, GDP rose 0.8%, matching Q4’s pace. Dive deeper
Disney is laying off several hundred employees across film, TV, and finance roles globally as part of its ongoing restructuring. The move follows a shift in focus to streaming and cost-cutting efforts. Dive deeper
Xiaomi’s EV unit is expected to turn profitable later this year, according to CEO Lei Jun. The company delivered over 28,000 vehicles in May, marking its eighth consecutive month of surpassing 20,000 units. A new model launch is also underway, supporting its strong momentum. Dive deeper
Apple has legally challenged the EU’s order under the Digital Markets Act, requiring it to open its ecosystem to rivals like Google and Meta. The company claims the interoperability demands are unreasonable, costly, and stifle innovation. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Shri Narendra Modi, Prime Minister of India, on India’s aviation potential
“India should not be viewed merely as an aviation market but as a value chain leader in the sector.”
“We are accelerating efforts to become a global hub for aircraft maintenance and establish a $4-billion MRO hub in the country by 2030.”
“The new Indian Aircraft Act aligns aviation laws with global best practices, ensuring a streamlined regulatory framework, ease of compliance, and a simplified tax structure, which presents a significant investment opportunity for major international aviation companies.” - Link
Aswath Damodaran, NYU Professor, on Moody’s downgrade of the U.S. and its muted market impact
“The downgrade was more of a blow to pride than to finances.”
“Private capital (in the form of equity and debt) is a far bigger source of financing and funding for the economy.”
“Now that the U.S. is no longer Aaa rated, we have to follow a similar process to get a risk-free rate in U.S. dollars.” - Link
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Calendars
In the coming days, we have the following significant events and corporate actions:
That’s it from us for today. We’d love to hear your feedback in the comments, and feel free to share this with your friends to spread the word!
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