Domestic equity benchmarks ended slightly lower today, weighed down by rising US Treasury yields and escalating trade tensions between the United States and the European Union. Foreign Institutional Investors (FIIs) remained largely inactive, while elevated market valuations continued to limit the scope for fresh buying. The Nifty 50 closed below the 24,800 level, with the broader market displaying a range-bound trend, slightly skewed to the downside. FMCG, auto and pharma shares dragged.

Investors are now awaiting the minutes from the US Federal Open Market Committee's (FOMC) May meeting, scheduled for release on Wednesday. The minutes are expected to provide clarity on the Federal Reserve's stance regarding future interest rate decisions, which may influence global capital flows.

The S&P BSE Sensex slipped 239.31 points or 0.29% to 81,312.32. The Nifty 50 index fell 73.75 points or 0.30% to 24,752.45.

ITC (down 3.18%), Mahindra & Mahindra (down 1.41%) and Reliance Industries (down 0.75%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.22% and the S&P BSE Small-Cap index added 0.50%.

The market breadth was positive. On the BSE, 2022 shares rose and 1928 shares fell. A total of 156 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 2.79% to 18.02.

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.

Meanwhile, foreign direct investment in India fell 24.5% year-on-year to $9.34 billion in the January-March quarter of 2024-25 but grew 13% at $50 billion during the entire previous financial year, according to the government data released on Tuesday. FDI inflows during January-March 2023-24 stood at $12.38 billion. These were $44.42 billion in the full 2023-24 fiscal. During the October-December quarter of 2024-25 also, the inflows were contracted by 5.6% year-on-year to $10.9 billion due to global economic uncertainties.

IMD Forecasts:

The India Meteorological Department (IMD) issued its updated Long-Range Forecast for the 2025 Southwest Monsoon season (June'September) along with the Monthly Rainfall and Temperature Outlook for June 2025. According to the forecast, the seasonal rainfall across the country as a whole is likely to be 106% of the Long Period Average (LPA), with a model error of '4%, indicating a high probability of above-normal rainfall during the monsoon season.

Regionally, the rainfall is most likely to be above normal over Central India and the South Peninsular region, while Northwest India is expected to experience normal rainfall levels (ranging between 92-108% of LPA). In contrast, Northeast India is likely to receive below-normal rainfall (<94% of LPA).

Numbers to Track:

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.4000, compared with its close of 85.4025 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement rose 0.57% to Rs 95,681.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 99.49.

The United States 10-year bond yield added 0.97% to 4.477.

In the commodities market, Brent crude for July 2025 settlement rose 53 cents or 0.83% to $64.42 a barrel.

Global Markets:

European shares tumbled on Wednesday as investors stayed cautious ahead of a batch of regional economic releases, including final French GDP figures, employment data from France and Germany, and an update on Turkish economic confidence.

German import prices fell by 0.4% year-on-year in April, according to data released by the Federal Statistical Office on Wednesday.

In March, import prices had risen by 2.1%, marking a significant contrast to the April data. The drop highlights ongoing challenges in global trade dynamics, which are being closely monitored by market participants.

Most Asian stocks ended lower, tracking overnight gains on Wall Street after investor sentiment was lifted by U.S. President Donald Trump's decision to extend the deadline for imposing a 50% tariff on European Union imports to July 9.

Market participants are now awaiting key earnings results from Nvidia and the release of the minutes from the U.S. Federal Reserve's May policy meeting, both scheduled for Wednesday afternoon U.S. time.

Australia's inflation held steady at 2.4% in April, no change since February, while New Zealand's central bank surprised with a rate cut, trimming the benchmark to 3.25%.

Across the Pacific, Wall Street lit up on Tuesday. A decision by Trump to delay slapping 50% tariffs on the EU helped revive risk appetite, and investor mood got another lift from a sharp jump in US consumer confidence. After five straight months of decline, confidence snapped back hard in May.

The Dow Jones Industrial Average climbed 1.78%, the S&P 500 jumped 2.05%, and the Nasdaq surged 2.47%, powered by tech heavyweights like Tesla. All three indexes ended a four-day losing streak in style.

This market rebound is also riding on hopes of easing trade tensions between the US and China, as the Trump administration works to ink deals with multiple key economies.

All eyes are now on NVIDIA, which is set to report Q1 earnings after the closing bell on Wednesday. Analysts are betting on a strong showing. The chipmaker's stock rallied 3.2% during the session and held steady in after-hours trading.

Meanwhile, the Conference Board reported that US consumer confidence soared in May, with the index jumping to 98 from April's 85.7, a level not seen since May 2020.

New Listing:

Shares of Belrise Industries settled at Rs 97.37 on the BSE, representing a premium of 8.19% as compared with the issue price of Rs 90.

The scrip was listed at Rs 98.50, exhibiting a premium of 9.44% to the issue price. The stock has hit a high of 103.20 and a low of 91.36. On the BSE, over 2.01 crore shares of the company were traded in the counter.

Stocks in Spotlight:

ITC fell 3.18% after heavy block deal activity early today, 28 May 2025. British American Tobacco (BAT) on Tuesday, 27 May 2025, announced its plans to sell around 2.3% of its stake in ITC via a block deal to institutional investors. The move aims to boost BAT's financial flexibility, helping it reduce debt and expand its share buyback program to Ł1.1 billion in 2025. Despite the sale, BAT will retain a significant 23.1% stake in ITC, maintaining a long-standing partnership that dates back over a century.

Triveni Engineering & Industries surged 6.52% after the company's consolidated net profit rose 13.63% year-on-year (YoY) to Rs 183 crore in Q4 FY25, compared to Rs 161.04 crore in Q4 FY24. Revenue from operations (excluding excise duty) grew 25.12% YoY to Rs 1,629.29 crore during the quarter ended 31 March 2025.

Apollo Micro Systems surged 13.74% after the company announced it has received an export order worth $13,366,500 (approximately Rs 113.81 crore) in the ordinary course of business.

Techno Electric & Engineering Company soared 15.05% after the company's consolidated net profit jumped 73.7% to Rs 134.65 crore on 85.6% increase in revenue from operations to Rs 815.79 crore in Q4 FY25 over Q4 FY24.

ITI frozen at its upper limit of 10% after the company's consolidated net loss narrowed to Rs 4.38 crore in Q4 FY25, compared with a net loss of Rs 238.82 crore in Q4 FY24. Revenue from operations jumped 73.9% YoY to Rs 1,045.70 crore in Q4 FY25.

Life Insurance Corporation of India surged 8.21% after the company reported 38.15% jump in standalone net profit to Rs 19,012.79 crore while total income fell 3.53% to Rs 243,386.15 crore in Q4 March 2025 over Q4 March 2024.

3M India declined 2.85% after the company's net profit fell 60% to Rs 71 crore, while revenue from operations rose 9% to Rs 1,198 crore in Q4 March 2025 over Q4 March 2024.

Redtape tanked 6.90% after the company's consolidated net profit declined 43.25% to Rs 41.47 crore while net sales declined 23.57% to Rs 505.24 crore in Q4 March 2025 over Q3 December 2024.

DCX Systems tanked 6.78% after the company's consolidated net profit fell 37.2% to Rs 20.70 crore on 26.3% fall in revenue from operations to Rs 549.96 crore in Q4 FY25 over Q4 FY24.

Medplus Health Services added 1.24% after the company's consolidated net profit jumped 53.7% to Rs 51.34 crore on 1.3% increase in revenue from operations to Rs 1509.61 crore in Q4 FY25 over Q4 FY24.

IPO Update:

The initial public offer (IPO) of Scoda Tubes received bids for 2,35,33,100 shares as against 1,18,46,169 shares on offer, according to stock exchange data at 16:30 IST on Wednesday (27 May 2025). The issue was subscribed 1.99 times.

The issue opened for bidding on Wednesday (28 May 2025) and it will close on Friday (30 May 2025). The price band of the IPO is fixed between Rs 130 and 140 per share. An investor can bid for a minimum of 100 equity shares and in multiples thereof.

Schloss Bangalore's IPO received bids for 20,93,72,408 shares as against 4,66,10,169 shares on offer, according to stock exchange data at 16:30 IST on Wednesday (28 May 2025). The issue was subscribed 4.49 times.

The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 413 and 435 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

Aegis Vopak Terminals' IPO received bids for 14,42,12,733 shares as against 6,90,58,296 shares on offer, according to stock exchange data at 16:30 IST on Wednesday (28 May 2025). The issue was subscribed 2.09 times.

The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.

Prostarm Info Systems' IPO received bids for 13,93,96,998 shares as against 1,12,00,000 shares on offer, according to stock exchange data at 16:30 IST on Wednesday (27 May 2025). The issue was subscribed 12.45 times.

The issue opened for bidding on Tuesday (27 May 2025) and it will close on Thursday (29 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.

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