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• Equity benchmark Sensex plunged over 600 points and the Nifty closed below the 24,600 mark, driven by weak global cues and rising concerns that U.S. tax cut proposals could deepen the fiscal deficit. Wall Street fell 2% overnight, while Asian and European markets each dropped around 1% following a lackluster U.S. Treasury bond auction. The poor response to the 20-year bond auction pushed U.S. Treasury yields higher, with the 10-year yield climbing 10 basis points to a three-month high of 4.59%, signaling investor concerns over President Donald Trump’s tax-cut plans.

• Despite the sell-off, the Nifty managed to recover somewhat from its intraday low, helped by short covering and strong economic data, as HSBC’s May Services and Composite PMI reached a one-year high above the 60 mark, pointing to robust economic momentum.

• The Sensex closed down 644 points, or 0.8%, at 80951, while the Nifty slipped 203 points, or 0.8%, to settle at 24,609, after hitting an intraday low of 24,462. Sector-wise, IT, Oil & Gas, and FMCG indices each declined by about 1%. However, Nifty small-cap stocks outperformed, with the small-cap index ending nearly flat. The advance-decline ratio for Nifty 500 stocks stood at 1:1.4, reflecting broader selling in large-cap stocks.

• On the upside, the Nifty Defense index gained 2% after strong quarterly earnings and GRSE’s announcement of a robust Rs 2,500 crore order book. GRSE surged 10% to close at Rs 2,756, while other defense-related stocks such as Solar Industries, Cochin Shipyard, Mazagon Dock, BDL, and Paras Defense posted gains of 2–6%.

Technical Outlook:

• Nifty Index opened on a negative note around the 24740 zone, and bears took charge from the first tick as the index witnessed profit booking of more than 250 points after opening. It slipped to an intraday low of 24462, reflecting broad-based selling and weak sentiment throughout the day. However, in the final hour, just ahead of weekly expiry the index found strong support at its 20-day EMA and rebounded sharply by more than 120 points, highlighting volatile intraday swings.

• On the daily chart, Nifty formed a bearish candle with a long lower shadow, indicating that buying interest is emerging at lower levels. Despite this rebound, the index has been forming lower highs for the past five sessions. Now it has to cross and hold above 24700 zones for an up move towards 24850 then 25000 zones while a hold below the same could see a profit booking decline towards 24444 then 24300 levels.

Derivative Outlook:

• Nifty future closed negative with losses of 0.67% at 24665 levels. Positive setup seen in Solar Industries, Astral, PB Fintech, Zydus Life, NMDC, GMR Airports, Angel One, MFSL, GAIL, TVS Motors, Tata Technology and Ramco Cements while weakness in Colpal, ABFRL, BSE, PEL, Dixon Tech, ONGC, Indian Bank, M&M, Biocon, VBL and MGL.

• On option front, Maximum Call OI is at 26000 then 25000 strike while Maximum Put OI is at 24000 then 23000 strike. Call writing is seen at 26500 then 24600 strike while Put writing is seen at 24600 then 22500 strike. Option data suggests a broader trading range in between 24000 to 25000 zones while an immediate range between 24400 to 24800 levels.

• ABB India - Company is signing an MoU with Steel Authority of India to boost the Rourkela steel plant's digital optimization of production processes.

• HSBC May Service PMI 13-Month High and 12-month high composite PMI - HSBC May Service PMI reported to 13-month high at 61.2 from 58.7 in April. HSBC May Composite PMI reported to 12-month high at 61.2 from 59.7 in April.

• BHEL to be nodal agency for EV charging infrastructure deployment - Company is being considered to be made the nodal agency for gauging and aggregating demand for electric vehicle (EV) chargers.

• Govt to install 72,000 EV charging stations under Rs 2,000 crore PM E-Drive scheme - PM E-Drive scheme aims to build a nationwide EV-ready ecosystem to enable cleaner transport and reduce India's dependency on fossil fuels. With a financial outlay of 2,000 crore rupees, this scheme will support the installation of approximately 72,000 EV public charging stations across the country.

• Garden Reach Shipbuilders Lowest Bidder for $2.9B Navy Contract - Company has emerged as the lowest bidder for an India defense contract worth about Rs25000 ($2.9 billion) to build small naval ships.

• Bajaj Auto to take control of KTM with €800mn loan - Company plans to acquire a controlling stake in cash-strapped KTM AG and has lined up a debt funding package of as much as €800 million ($907mn) that will save the Austrian company from bankruptcy.

• DLF sticks to Rs22,000 crore pre-sales goal for FY26 - Company s keeping its sales guidance steady at Rs 20,000-22,000 crore for the current financial year. The company reported Rs 21,200 crore in pre-sales last year, exceeding its original guidance of Rs17,000 crore

Global Market Update

• European Market - European stocks fell on Thursday as traders took some risk off the table after a series of disappointing earnings. Concerns over tariffs and US tax proposals that threaten to enlarge the deficit also weighed. Germany, UK and France Index decline 0.5% each.

• Asian Market - Asian equities fell, driven by losses in technology stocks after Treasury yields jumped on concerns over growth in the US budget deficit. Korea’s Kospi and Japan’s Nikkei 225 fell more than 1% each, with shares also sliding in Hong Kong and Taiwan.

• US Data - Initial Jobless, Manufacturing, Service and Composite PMI. Initial Jobless data

• Commodity - Oil declined as OPEC+ members discussed the possibility of another super-sized production increase, raising the prospects of additional output just as demand faces headwinds from the US-led trade war. Brent slumped 1$ to below $64 a barrel.

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