Indices edge higher in early trade; breadth positive

The key equity indices traded with minor gains in early trade. The Nifty traded above the 24,100 level. Metal, FMCG and PSU Bank stocks advanced while IT, pharma and auto shares declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex added 68.12 points or 0.10% to 79,490.10. The Nifty 50 index rose 19.10 points or 0.08% to 24,144.65.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 0.25% and the S&P BSE Small-Cap index advanced 0.21%.

The market breadth was positive. On the BSE, 1,596 shares rose and 1,249 shares fell. A total of 141 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,970.17 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 246.59 crore in the Indian equity market on 21 April 2025, provisional data showed.

Economy:

In a relief to banks, the Reserve Bank of India has finalized its Liquidity Coverage Ratio (LCR) guidelines, reducing the proposed additional run-off factor on internet and mobile banking-enabled retail deposits to 2.5%, effective 1 April 2026. Under the new norms, stable and less stable retail deposits will now attract run-off factors of 7.5% and 12.5%, respectively. The RBI also lowered the run-off rate on wholesale funding from non-financial entities like trusts and LLPs to 40% from 100%, aiming to better reflect funding stability. These changes are expected to improve banks' LCR by about 6% while ensuring continued compliance with minimum regulatory

Stocks in Spotlight:

Mahindra Logistics rallied 5.05%. The company reported a consolidated net loss of Rs 6.75 crore in Q4 FY25 as compared with net loss of Rs 12.85 crore in Q4 FY24. Revenue from operations jumped 8.19% YoY to Rs 1,569.51 crore in Q4 FY25.

Pitti Engineering jumped 3.34%. The company reported a 21.4% decline in consolidated net profit to Rs 36.14 crore in Q4 FY25 as compared with Rs 46 crore in Q4 FY24. Net sales jumped 39.6% YoY to Rs 468.78 crore in Q4 FY25.

Tata Investment Corporation declined 1.63% after the companys consolidated net profit declined 37.6% to Rs 37.72 crore in Q4 FY25 as compared with Rs 60.47 crore in Q4 FY24. Total income fell 42.9% YoY to Rs 45.83 crore during the quarter ended 31st March 2025.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.74% to 6.430 as compared with the previous close of 6.417.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.1550, compared with its close of 85.1575 during the previous trading session.

MCX Gold futures for the 5 June 2025 settlement were rose 1.73% to Rs 96,960.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 98.12.

The United States 10-year bond yield rose 0.20% to 4.414.

In the commodities market, Brent crude for June 2025 settlement advanced 31 cents or 0.47% to 66.57 a barrel.

Global Market:

Dow Jones futures jumped 156 points early this morning, signaling a potential bounce-back for U.S. equities after a rocky start to the week.

Most Asian markets advanced on Tuesday. But gains were kept in check after Wall Street stumbled, weighed down by President Trump intensifying his public pressure on Federal Reserve Chairman Jerome Powellagain raising eyebrows over the Feds independence.

Meanwhile, tensions between Washington and Beijing flared up further. China slapped sanctions on several U.S. lawmakers, officials, and NGO leaders, accusing them of egregious behaviour over Hong Kong-related issues. The move comes on the heels of U.S. sanctions imposed last month on Chinese and Hong Kong officialsan action that Beijing has "strongly condemned," according to foreign ministry spokesperson Guo Jiakun.

Back in the U.S., all three major indexes slid overnight as investors digested Trumps Powell tirade and a lack of progress on global trade talks. The Dow tumbled 2.48%, the S&P 500 sank 2.36%, and the Nasdaq dropped 2.55%.

Powell, for his part, reminded everyone last week that the Feds independence is not just traditionits "a matter of law." Markets are now trying to parse whether Trumps threats are just more rate-cut rhetoric or something more serious.

Adding to the global gloom, a leading brokerage trimmed its global growth forecast on Monday. Blaming the ongoing tariff drama and mounting uncertainty from U.S. trade policy, it now expects global GDP to grow just 2.8% in 2025 and 3% in 2026down 30 and 20 basis points, respectively, from previous estimates. One-third of the downgrade stems from the U.S., with the rest spread across China, Japan, and emerging markets.

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