Metal, realty and pharma shares advanced, while PSU bank, FMCG and private bank shares fell.

At 13:30 IST, the barometer index, the S&P BSE Sensex, rose 12.31 points or 0.02% to 81,331.84. The Nifty 50 index added 8.25 points or 0.03% to 24,759.45.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.31% and the S&P BSE Small-Cap index added 0.36%.

The market breadth was positive. On the BSE, 1,918 shares rose and 1,952 shares fell. A total of 148 shares were unchanged.

Gainers & Losers:

Trent (up 1.85%), IndusInd Bank (up 1.76%), Eternal (up 1.68%), Sun Pharmaceutical Industries (up 1.46%) and Tata Steel (up 1.40%) were the major Nifty50 gainers.

HDFC Life Insurance Company (down 0.96%), Tata Consumer Products (down 0.91%), Bharat Electronics (down 0.82%), ITC (down 0.71%) and Bajaj Finance (down 0.73%) were the major Nifty50 losers.

Economy:

India's industrial output growth slowed to 2.7% in April, as against the revised growth of 3% in the preceding month of March, according to the data released by the Ministry of Statistics and Programme Implementation. Manufacturing output, which carries the largest weight in the index, advanced 3.4% in April as against 4% in the previous month, while electricity generation increased to 1.1% from 7.5% in March. Mining activity contracted by 0.2% in April from an expansion of 1.2% a month ago.

RBI Annual Report Highlights:

The Reserve Bank of India (RBI), in its annual report, projected that the Indian economy is likely to maintain its position as the fastest-growing major economy in FY2025-26. The optimism is fueled by a pickup in private consumption, robust bank and corporate balance sheets, supportive financial conditions, and a sustained push from the government on capital expenditure.

The central bank also painted a positive inflation outlook for the coming year, citing easing global supply chain pressures, a dip in commodity prices, and the prospect of a strong agricultural output driven by an above-normal southwest monsoon.

However, the RBI cautioned that financial markets may face intermittent volatility, particularly in response to global uncertainties like shifting trade tariff policies and rising geopolitical tensions.

On the financial front, the RBI’s balance sheet grew 8.20% year-on-year to Rs 76.25 lakh crore as of 31 March 2025. While income for the year increased by 22.77%, expenditure increased by 7.76%. The year ended with an overall surplus of Rs 2.68 lakh crore as against Rs 2.10 lakh crore in the previous year, resulting in an increase of 27.37%.

The asset side of the balance sheet saw increases in gold reserves, domestic investments, and foreign investments. Domestic assets accounted for 25.73% of total assets, while foreign currency assets, gold, and other holdings made up the remaining 74.27%.

On the liabilities side, the growth was attributed to a rise in currency in circulation, revaluation accounts, and other liabilities by 6.03%, 17.32% and 23.31%, respectively.

Stocks in Spotlight:

Steel Authority of India (SAIL) rose 1.28% after the company's standalone net profit advanced 16.49% to Rs 1,177.96 crore, while revenue from operations rose 4.86% to Rs 29,316.08 crore in Q4 March 2025 over Q4 March 2024.

Balaji Amines declined 2.96% after the company’s consolidated net profit tanked 44.21% to Rs 40.43 crore, while revenue from operations fell 14.78% to Rs 352.72 crore in Q4 March 2025 over Q4 March 2024.

Bata India fell 1.37% after the company reported a 27.86% decline in consolidated net profit to Rs 45.92 crore, while revenue from operations decreased by 1.21% to Rs 788.21 crore in Q4 March 2025 over Q4 March 2024.

Deepak Nitrite jumped 5.54% after the company’s consolidated net profit surged 106.35% to Rs 202.41 crore on 14.52% increase in revenue from operations to Rs 2,179.69 crore in Q4 FY25 over Q3 FY25. On year on year (YoY) basis, the company’s consolidated revenue jumped 2.5%, while net profit declined 20.3% in Q4 FY25.

Global Markets:

US Dow Jones futures jumped 553 points early Thursday, signaling a strong start for Wall Street.

European and Asian shares advanced on Thursday after a U.S. federal trade court ruled that President Donald Trump exceeded his authority with his reciprocal tariffs, dealing a blow to a major tenet of the president’s economic agenda. The court ruled that Trump had overstepped his authority by imposing tariffs on over 180 countries and territories back in April.

The decision came from a three-judge panel at the US Court of International Trade. They found that the 1977 International Emergency Economic Powers Act (IEEPA), the legal crutch Trump leaned on, didn't give the president free rein to roll out such broad trade measures. The court issued a permanent halt to the tariffs named in the case and blocked any future tweaks. The Trump administration now has 10 days to make the necessary changes but has already appealed the decision to the US Court of Appeals for the Federal Circuit.

Meanwhile, South Korea's central bank, the Bank of Korea, cut its benchmark interest rate from 2.75% to 2.5%, marking its lowest level since August 2022.

Investors in Asia are also keeping a close watch on chipmakers after Nvidia’s strong earnings. The GPU giant beat expectations on both top and bottom lines, driven by a 73% year-over-year surge in its data center business.

Back in the US, stock markets closed lower on Wednesday. The S&P 500 dipped 0.56%, the Nasdaq fell 0.51%, and the Dow Jones lost 0.58% as investors digested earnings and the latest Fed minutes.

Speaking of which, the Fed’s May 6-7 meeting minutes hinted at a looming policy dilemma. Officials acknowledged that they may soon face some tough calls if inflation and unemployment start rising together. The Fed might be forced to choose between fighting inflation with higher rates or supporting growth and jobs by cutting them.