Indices extend losses for third day amid geopolitical jitters, Fed caution

Key equity benchmarks ended with marginal losses today, marking the third straight session of decline, as investor sentiment remained shaky due to escalating tensions between Israel and Iran.

Adding to the caution, the U.S. Federal Reserve's decision to hold interest rates steady also weighed on global cues. Fed Chair Jerome Powell flagged the possibility of rising goods inflation during the summer, partly due to tariffs introduced under President Donald Trumps trade policies.

The Nifty closed below the 24,800 mark. On the sectoral front, barring Nifty Auto, all indices on the NSE ended in the red, with PSU banks, realty, and media stocks leading the losses.

The S&P BSE Sensex shed 82.79 points or 0.10% to 81,361.87. The Nifty 50 index fell 18.80 points or 0.08% to 24,793.25. The Sensex and the Nifty have fallen 0.53% and 0.61%, respectively, in three sessions.

Adani Ports & SEZ (down 2.59%), Bajaj Finance (down 2.08%) and Infosys (down 0.88%) were major drags today.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1.64% and the S&P BSE Small-Cap index dropped 1.77%.

The market breadth was weak. On the BSE, 959 shares rose and 3,018 shares fell. A total of 140 shares were unchanged.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.62% to 6.297 from the previous close of 6.258.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.7325 compared with its close of 86.4300 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement shed 0.12% to Rs 99,415.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 98.94.

The United States 10-year bond yield rose 0.64% to 4.387.

In the commodities market, Brent crude for August 2025 settlement rose 10 cents or 0.13% to $76.80 a barrel.

Global Markets:

US Dow Jones futures were down 176 points. Wall Street will be shut on Thursday for the Juneteenth holiday, with regular trading set to resume Friday.

European shares declined as investors awaited the Bank of Englands rate decision due at midday.

Norway's central bank has cut interest rates by 25 basis points to 4.25% for the first time since the start of the Covid-19 pandemic. Norges Bank had in March suggested it was expecting to cut its key sight deposit rate in June and followed through.

The Swiss National Bank has cut interest rates by a further 25 basis points to 0%adding to concerns over a potential return to negative rates.

Most Asian stocks ended lower as investors digested the U.S. Federal Reserves widely expected decision to keep interest rates unchanged. Adding to the cautious mood, ongoing tensions between Israel and Iran continued to weigh on sentiment.

Taiwans central bank kept its policy rate unchanged at 2% on Thursday, as widely expected, given the islands robust tech-driven economy and moderating inflation, and maintained its economic growth outlook for the year.

The Philippine central bank cut its key interest rate by a quarter of a percentage point to 5.25% for a second time this year and signaled theres scope for further easing, with inflation likely to remain modest and economic growth at risk from global uncertainties.

As expected, the Fed held its benchmark rate steady at 4.25%-4.5% on Wednesday, marking no change since December. Fed Chair Jerome Powell indicated the committee would wait to assess the inflationary impact of President Trumps tariff measures before considering any policy shifts.

Despite the hawkish pause, the Fed still pointed to two rate cuts by the end of the year.

Geopolitical concerns remain front and center. Investor nerves were further rattled after Iran's Supreme Leader Ayatollah Ali Khamenei dismissed President Trump's calls for unconditional surrender. His remarks, delivered via a televised statement on Wednesday, were his first since Friday, when Israel escalated its offensive against Iran.

Back on Wall Street, US equities ended mixed on Wednesday. The Dow slipped 0.10%, and the S&P 500 edged down 0.03%, while the Nasdaq bucked the trend with a 0.13% gain.

Stocks in Spotlight:

Nestle India fell 1.28%. The company announced that its board will consider a bonus share issue on 26 June 2025.

Shares of Siemens Energy India Ltd (SEIL), the newly demerged energy business of Siemens, made a debut on the bourses today. The stock listed at Rs 2,840 on the NSE, higher than the discovered price of Rs 2,478.20, and at Rs 2,850 on the BSE, versus a discovered price of Rs 2,368.80. It quickly surged to hit its upper circuit limits of Rs 2,982 on the NSE and Rs 2,992.45 on the BSE. However, the initial rally was short-lived. SEIL closed at Rs 2,760 on the NSE and Rs 2738.35 on the BSE.

ESAF Small Finance Bank gained 2.34% after the bank's board approved a major clean-up of its balance sheet by offloading bad loans worth Rs 735.18 crore to an Asset Reconstruction Company (ARC).

Tata Elxsi fell 3.57%. The company announced that it has signed a memorandum of understanding (MoU) with Infineon Technologies to jointly develop application-ready EV solutions tailored to the Indian market.

Markolines Pavement Technologies rose 2.42% after the company announced that it has secured a maintenance contract worth Rs 18.88 crore from Varanasi-Aurangabad NH-2 Tollway.

AAVAS Financiers shed 0.35%. The companys board executive committee has approved raising up to Rs 200 crore through a private placement of non-convertible debentures (NCDs).

Garware Technical Fibres declined 2.45%. The company announced that it has incorporated of a wholly owned subsidiary (WOS), Garware Technical Fibres AS (GTF AS), in Norway.

Marksans Pharma slipped 1.24%. The company announced that its wholly owned subsidiary Relonchem has received marketing authorization for the product Oxybutynin hydrochloride Oral Solution from UK Medicines & Healthcare Products Regulatory Agency (UKMHRA).

Puravankara advanced 1.18% after the companys, wholly owned subsidiary, Starworth Infrastructure & Construction, received a letter of intent (LoI) worth Rs 272 crore from Tru Dwellings.

IPO Update:

The initial public offer (IPO) of Arisinfra Solutions received bids for 1,70,33,879 shares as against 1,30,84,656 shares on offer, according to stock exchange data at 16:45 IST on Thursday (19 June 2025). The issue was subscribed 1.30 times.

The issue opened for bidding on Wednesday (18 June 2025) and it will close on Friday (20 June 2025). The price band of the IPO is fixed between Rs 210 and 222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.

Powered by Capital Market - Live News