Sensex declined 179 points, or 0.22%, to 82,335, while the
NSE Nifty slipped by 46 points, or 0.21% to 25,088.
On the 30-share Sensex, Asian Paints,
Sun Pharma, Bajaj Finserv, Bharti Airtel, Bajaj Finance, and
Reliance Industries led the gains, rising between 0.4% and 2.1%.
IT stocks came under pressure, with the Nifty IT index declining 0.7% and snapping a six-day winning streak, as investors reacted to the fragile U.S.-China trade truce. The sector, which derives a significant share of its revenue from the U.S., saw selling amid uncertainty over the limited scope of the deal.
Investor focus this week has remained on the U.S.-China negotiations, which concluded in a tentative agreement that includes easing Chinese export restrictions on rare earth minerals and improving access for Chinese students to U.S. universities.
Meanwhile, financial stocks edged higher, with the Nifty Financial Services and Nifty Bank indices gaining 0.2% each. Heavyweights
HDFC Bank and
ICICI Bank advanced 0.4% and 0.3%, respectively.Pharma stocks were among the top gainers on the day, with the Nifty Pharma index rising 1.2%, led by gains in
Ajanta Pharma, Sun Pharma,
Mankind Pharma, and
Dr. Reddy's Laboratories, which climbed between 1% and 3.4%.Among individual stocks, shares of One 97 Communications, the parent company of Paytm, tumbled as much as 10% after the Finance Ministry dismissed reports suggesting a possible introduction of a merchant discount rate (MDR) on UPI payments.
The recent flattish trend in the market is likely to continue in the near term since there are no clear positive triggers that can push the market much higher, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
"There are reports of a possible agreement between the U.S. and China. But the Chinese haven’t officially confirmed anything. President Trump is talking about a 55% tariff on China and a 10% tariff on the U.S. President Trump’s credibility being what it is, it would be too early to discount this as positive for markets," said Vijayakumar.
Trump has also declared that he will be sending letters to trade partners in the next two weeks setting universal tariffs, said Vijaykumar, adding that "the tariff crisis is not yet over."
The spike in Brent crude to $70 on heightened security risks in the Middle East is a negative for India, said Vijayakumar, adding that sectors like paints, adhesives, tyres and aviation are likely to respond negatively to this while ONGC and Oil India can respond positively.
World equities slipped on Thursday as investors digested a softer U.S. inflation report and a tenuous trade truce between Washington and Beijing, while escalating tensions in the Middle East and persistent tariff concerns weighed on risk appetite.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3% in early trade, pulling back after hitting a three-year high on Wednesday. Japan’s Nikkei dropped 0.7%, while stock futures in the U.S. and Europe also declined.
China’s blue-chip index eased 0.37%, retreating from a near three-week high, and Hong Kong’s Hang Seng fell 0.74%, slipping from Wednesday’s three-month peak.
U.S. data released Wednesday showed consumer prices rose less than expected in May, as a drop in gasoline prices partially offset higher rents. However, inflation is projected to pick up in the coming months due to the impact of import tariffs.
The weaker inflation print prompted President Donald Trump to renew calls for a substantial Federal Reserve rate cut, continuing his pressure on the central bank despite its resistance.
According to Reuters data, markets are now pricing in a 70% chance of a quarter-point rate cut by September, although policymakers are expected to hold rates steady at next week’s meeting.
Meanwhile, gold gained on safe-haven demand, with spot prices rising 0.5% to $3,370.29.
Foreign Institutional Investors (FIIs) snapped their three-day buying streak on June 11, selling equities worth Rs 446 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 17th consecutive session, with purchases totaling Rs 1,585 crore.
Oil prices rose on Thursday to their highest levels in over two months, as concerns over potential supply disruptions grew following U.S. President Donald Trump's announcement of relocating American personnel from the Middle East amid rising tensions with Iran.
At 12:30 a.m. GMT, Brent crude futures were up 15 cents, or 0.2%, at $69.92 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 22 cents, or 0.3%, to trade at $68.37.
Rupee vs Dollar
The Indian rupee opened 0.1% higher at 85.4275 against the U.S. dollar on Thursday, supported by a softer greenback amid growing signs of a more conciliatory stance from U.S. President Donald Trump on tariffs and rising expectations of Federal Reserve rate cuts later this year.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six major peers, slipped 0.07% to 99.02 and is down 9% so far this year.
(with inputs from agencies)
