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• The equity benchmark Nifty closed slightly lower due to weakness in global markets amid ongoing trade tensions between the US and China. President Donald Trump’s announcement to raise steel and aluminum tariffs from 25% to 50% dampened market sentiment. Nifty fell by 34 points, or 0.1%, to close at 24716, recovering partially from an intraday low of 24,526, as the Nifty IT and Metal indices declined by 1% each.

• However, market focus shifted to mid-cap and small-cap stocks, supported by strong quarterly results and expectations of an RBI interest rate cut at the June 6 credit policy meeting. Both the Nifty Mid-cap and Small-cap indices gained 1% each. The Nifty 500 advance-decline ratio stood at 1.4:1, reflecting positive momentum in mid and small-cap stocks.

• Domestic factors also provided support, including India’s Q4 GDP growth reaching a four-quarter high of 7.4%, robust May monthly sales data, and strong GST collections exceeding ?2 lakh crore in May. Rate-sensitive sectors such as Nifty PSU Banks and Realty indices rose 2% each, driven by expectations of an RBI rate cut. PSU banks like Union Bank, Bank of India, Indian Bank, Bank of Maharashtra, and IOB gained between 3-7%. Realty stocks including Brigade, Prestige Estate, Anant Raj, Phoenix Mills, and Sobha advanced 2-6%.

• The Nifty FMCG index rose 1% following the government’s decision to cut the basic customs duty on crude palm oil, crude soybean oil, and crude sunflower oil from 20% to 10%, aiming to reduce cooking oil prices and protect domestic processing industries. Stocks like Britannia, Godrej Consumer, United Spirits, Hindustan Unilever, and Tata Consumers gained 1-3%..

Technical Outlook:

• Nifty Index opened on a negative note at 24669 and witnessed profit booking in the initial half hour, slipping towards the 24530 zone. However, from there, bulls stepped in and took charge, leading to a steady recovery throughout the day. The index recovered over 200 points from its intraday low and managed to reclaim its 20-day EMA, reflecting a strong bounce from support levels.

• On the Technical front, Nifty formed a bullish Pin Bar candlestick on the daily chart, clearly indicating that support at lower levels is being defended by bulls and buying interest remains active around key support zones. Now it has to cross and hold above 24750 zones for an up move towards 25000 then 25200 zones else weakness could be seen towards 24600 then 24444 zones.

Derivative Outlook:

• Nifty future closed negative with losses of 0.25% at 24809 levels. Positive setup seen in CDSL, Indian Bank, Prestige Estate, CAMS, Union Bank, Paytm, Angel One, IRFC, AU Bank, Oberoi Realty, Godrej Properties and PNB while weakness in Inox Wind, Mphasis, Hero Moto Corp, Persistent System, Tech Mahindra, Marico, JSW Steel, Torrent Pharma, Bajaj Auto, Tata Motors, Voltas and TVS Motor.

• On option front, Maximum Call OI is at 26000 then 25500 strike while Maximum Put OI is at 24000 then 24500 strike. Call writing is seen at 24700 then 25600 strike while Put writing is seen at 24600 then 24500 strike. Option data suggests a broader trading range in between 24300 to 25300 zones while an immediate range between 24500 to 25000 levels

• Godrej Properties buys land in Pune, for Housing Project – Company has acquired a 14-acre land parcel in Pune, India, to develop a group housing project. The project will have a developable potential of 3.7 million square feet and an estimated revenue potential of Rs4200cr.

• Manufacturing PMI slows to 57.6 in May from 58.2 in April - Manufacturing sector saw a slight slowdown in May 2025, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) dropping to 57.6 from 58.2 in April. While still indicating expansion, the drop suggests a moderation in the pace of growth compared to the previous month.

• NMDC May sales rose over 50% - Company reported production for May of 4.43million tons (up 89% YoY) and sales reported at 4.34mn tons (up 54% YoY).

• SML Isuzu – Company reported passenger vehicle sales at 1130 unit (down 1.3% YoY).

• Bajaj Auto – Company reported May monthly sales at 3.8 lakh unit (up 8% YoY).

• Hyundai Motor – Company reported May monthly sales at 58701 unit (up 7.6% YoY).

• Maruti – Company reported May monthly sales at 1.8 lakh unit (up 3.2% YoY).

• Coal India – Company reported May sales for May of 64mn tons (down 7.8% YoY) and Production 63.5 million tons (down 1.4% y/y).

• UPL’s Advanta Acquires Key Corn Assets from K-Adriatica - The deal includes temperate corn breeding germplasm, a pipeline of corn hybrids, and a diverse corn product portfolio. This move strengthens Advanta’s presence in the European corn market.

Global Market Update

• European Market - European stocks dropped amid renewed trade tensions between the US and China and as President Donald Trump planned an increase in steel and aluminum tariffs. Both Germany and France Index decline 0.3% each.

• Asian Market - Asian markets decline as trade tensions resurfaced after Donald Trump said he would double tariffs on steel and aluminum in a new protectionist pledge. The US president also accused China of violating an agreement to ease export levies. Japan, Hong Kong, South Korea and Australia Index declined up to 1%.

• US Data - Manufacturing PMI and Existing New Orders.

• Commodity - Oil prices rise on flaring geopolitical tensions, shrugging off a largely expected OPEC+ agreement to hike production in July. Brent crude is up 3% at $64 a barrel.

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