The headline equity benchmarks traded with minor losses in early trade as Fed Chair Jerome Powell cautioned that persistent tariff hikes could slow growth and drive long-term inflation. Investor sentiment was also weighed down by rising Indo-Pak tensions. The Nifty slipped below the 24,400 mark.
Realty, FMCG and pharma shares corrected while Media, IT and private bank shares advanced.
At 09:30 IST, the barometer index, the S&P BSE Sensex, shed 49.43 points or 0.06% to 80,697.23. The Nifty 50 index lost 26.10 points or 0.11% to 24,388.30
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.13% and the S&P BSE Small-Cap index jumped 0.76%.
The market breadth was strong. On the BSE, 1,997 shares rose and 704 shares fell. A total of 144 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth 2,585.86 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,378.49 crore in the Indian equity market on 7 May 2025, provisional data showed.
Stocks in Spotlight:
Dabur India slipped 1.63% after the company reported 8.4% decline in consolidated net profit to Rs 320.13 crore in Q4 FY25. Net sales increased 0.6% to Rs 2,830.14 core in Q4 FY25 as compared with Rs 2,814.64 crore in Q4 FY24.
Coal India rose 1.77% after the company’s consolidated net profit jumped 12% to Rs 9,604.02 crore in Q4 FY25 as compared with Rs 8,572.14 crore in Q4 FY24. Net sales fell marginally to Rs 34156.35 crore in Q4 FY25 as compared with Rs 34,263.89 crore in Q4 FY24.
United Breweries added 0.20%. The company’s consolidated net profit jumped 20.2% to Rs 97.57 crore on 8.9% increase in net sales to Rs 2,322.89 crore in Q4 FY25 over Q4 FY24.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.03% to 6.433 as compared with previous close 6.435.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.5425, compared with its close of 84.7700 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement rose 0.11% to Rs 97,200.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 99.515.
The United States 10-year bond yield added 0.35% to 4.290.
In the commodities market, Brent crude for July 2025 settlement gained 44 cents, or 0.72% to $61.56 a barrel.
Global Markets:
The US Dow Jones index futures were currently up by 225 points, signaling a positive opening for US stocks today.
Most Asian markets advanced on Thursday after the U.S. Federal Reserve held interest rates steady, maintaining its benchmark overnight rate in the range of 4.25% to 4.5%, where it has remained since December. The move was widely anticipated by market participants.
In a post-meeting press conference, Federal Reserve Chair Jerome Powell cautioned that the existing tariff increases could weigh on economic growth and contribute to higher long-term inflation if they remain in place.
Investors are closely monitoring developments ahead of the upcoming U.S.-China trade talks. U.S. Treasury Secretary Scott Bessent is scheduled to meet his Chinese counterpart in Switzerland later this week to discuss trade and economic issues.
U.S. equities closed higher on Wednesday, supported by gains in semiconductor stocks. The S&P 500 rose 0.4% to 5,631.27, the NASDAQ Composite gained 0.3% to 17,738.16, and the Dow Jones Industrial Average advanced 0.7% to 41,113.97.
Markets responded to reports suggesting the Trump administration may reverse restrictions imposed during the Biden administration on the export of advanced artificial intelligence chips. These restrictions were originally intended to maintain U.S. leadership in AI technology and limit China’s access to such products. A rollback could benefit U.S.-based chipmakers by enabling broader overseas sales.
Shares of Nvidia rose 3.1% on the news, though the stock declined slightly in after-hours trading. U.S.-listed shares of TSMC gained 1.3% and were unchanged after hours. Intel ended the session up 1.9%.
Separately, President Donald Trump announced via social media that he will hold a press conference on Thursday to unveil a “major trade deal” with representatives of a “big and highly respected country.” Media reports suggest the country involved is the United Kingdom, which has been engaged in ongoing trade negotiations with the U.S.