The domestic equity benchmarks ended with significant losses today, weighed down by ongoing tensions in the Middle East. Investors will monitor crude oil prices and geopolitical developments. The Nifty settled below the 25,000 level.
The barometer index, the S&P BSE Sensex, tanked 511.38 points or 0.62% to 81,896.79. The Nifty 50 index slipped 140.05 points or 0.56% to 24,971.90.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.20% and the S&P BSE Small-Cap index added 0.57%. The market breadth was negative.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.74% to 14.05.
Among the sectoral indices, the Nifty Media index (up 4.39%) and the Nifty Consumer Durables index (up 0.82%) and the Nifty Metal index (up 0.66%) outperformed the Nifty 50 index.
Meanwhile, the Nifty IT index (down 1.48%), the Nifty Auto index (down 0.92%) and the Nifty FMCG index (down 0.74%) underperformed the Nifty 50 index.
Economy:
The HSBC Flash India Composite Output Index, which tracks month-on-month changes in combined output from manufacturing and services, rose to 61.0 in June from 59.3 in May - the highest in 14 months and well above the long-term average.
Manufacturing led the growth, with the Manufacturing PMI Output Index climbing to 61.5 in June from 60.3 in May. The overall Manufacturing PMI rose to 58.4, its best level since April 2024, signalling improved operating conditions.
The HSBC Flash India Services PMI Business Activity jumped to 60.7 from 58.8, showing a strong uptick in service sector growth.
Numbers to Track:
The yield on India's 10-year benchmark federal paper fell 0.17% to 6.305 from the previous close of 6.310.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.7800 compared with its close of 86.5550 during the previous trading session.
MCX Gold futures for 5 August 2025 settlement rose 0.19% to Rs 99,293.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.56% to 99.26.
The United States 10-year bond yield added 0.27% to 4.387.
In the commodities market, Brent crude for August 2025 settlement rose 56 cents or 0.73% to $77.57 a barrel.
Global Markets:
European markets traded lower, while Asian markets ended lower on Monday as investor jitters grew following the US airstrikes on three Iranian nuclear sites, which pushed oil prices higher and reignited fears of a wider Middle East conflict.
On the macro front, Japan delivered a pleasant surprise. Its manufacturing sector returned to expansion in June, with the au Jibun PMI rising to 50.4 from May’s 49.4. The services sector also saw steady growth, with the index nudging up to 51.5 from 51.0.
Back in the US, two of the three major indices closed lower on Friday. The S&P 500 slipped 0.22%, marking its third straight loss, while the Nasdaq dropped 0.51%. The Dow managed a modest gain of 0.08% as investors weighed geopolitical developments and the Fed’s next move on rates.