Barometers turn rangebound; media shares rally for 6th day
Media shares witnessed buying demand for sixth consecutive trading session.
At 11:26 IST, the barometer index, the S&P BSE Sensex, 176.33 points or 0.22% to 80,913.84. The Nifty 50 index added 51.20 points or 0.21% to 24,595.05.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.42% and the S&P BSE Small-Cap index added 0.52%.
The market breadth was positive. On the BSE, 2,060 shares rose and 1,680 shares fell. A total of 183 shares were unchanged.
The Reserve Bank of India commenced its monetary policy meeting today, 4 June 2025, which will conclude on 6 June 2025. The meeting is being chaired by Governor Sanjay Malhotra. With inflation showing signs of moderation, market participants are speculating on the possibility of a rate cut.
Economy:
The seasonally adjusted HSBC India Services PMI Business Activity Index rose 58.8 in May from 58.7 in April 2025. Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity.
The HSBC India Composite PMI Output Index came at 59.3 in May, down only marginally from 59.7 in April. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace.
Buzzing Index:
The Nifty Media index advanced 0.98% to 1,743.05. The index rallied 3.14% for the six consecutive trading sessions.
Saregama India (up 7.47%), D B Corp (up 6.36%), Tips Music (up 2.92%), PVR Inox (up 2.68%), Hathway Cable & Datacom (up 0.7%) and Sun TV Network (up 0.13%) advanced.
Stocks in Spotlight:
Maruti Suzuki India rose 0.54%. The company said that has expanded its solar power capacity by 30 megawatt peak (MWp), taking its total installed capacity to 79MWp across locations.
Rajesh Power Services (RPSL) added 2.32% after the company has been declared the successful bidder (L1) for multiple projects under the Madhya Gujarat Vij Company (MGVCL).
Global Markets:
European markets set to open higher as investors await the release of Spanish and Italian services purchasing managers index (PMI) data, which measures activity in the sector. Polands central bank will also scheduled to announce its latest monetary policy decision on Wednesday.
Most Asian shares climbed following a tech-led rally on Wall Street, with Nvidia once again in the spotlight. South Korean stocks led the charge after opposition leader Lee Jae-myung won the presidential election. The Kospi surged over 2%, hitting its highest level since August 2024, as markets cheered expectations of bold fiscal stimulus and a more pragmatic stance on international trade.
Over in Australia, GDP growth came in at 1.3% year-on-year for Q1 2025. It's the same pace as the previous quarter, signaling steady but subdued momentum.
In the US, all three major indices closed higher. The S&P 500 rose 0.58%, the Dow added 0.51%, and the Nasdaq outperformed with a 0.81% gain. Nvidia shares jumped more than 2% as investors continued to digest last weeks blockbuster earnings.
On the policy front, President Trump signed off on higher tariffs, doubling duties on steel and aluminum imports to 50%. He cited the move as a step to deter dumping and strengthen US producers. Notably, the UK was granted an exemption, sticking to the previous 25% rate under a trade deal signed in May.
Labor market data also impressed. The latest JOLTS report showed job openings at 7.39 million, topping estimates of 7.11 million and up from 7.2 million in the previous month. All eyes now turn to Fridays non-farm payrolls for the next big clue on the Feds rate path.
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Time of India
2 hours ago
- Time of India
Retail inflation hits over 6-year low of 2.10% in June; WPI turns negative
India's key inflation gauge dropped to pre-pandemic lows on the back of a sharp decline in food inflation, triggering hopes of another rate cut by the Reserve Bank of India (RBI). Retail inflation in June based on the Consumer Price Index (CPI) dropped to 2.1%, the lowest in more than six years and just shy of the lower end of the central bank's 2-6% target range, official data released Monday showed. The RBI is mandated to target 4% retail inflation within the range. This is the fifth consecutive month that CPI inflation has printed below 4%. Retail inflation is at its lowest since January 2019, when it was 1.97%. The Wholesale Price Index (WPI) slipped into the deflation zone, hitting a 20-month low of -0.1% in June against 0.4% in May. The drop in the inflation rate was driven by a decline in food and fuel prices and a moderation in manufactured goods. ICRA chief economist Aditi Nayar said a 25 bps cut in August cannot be ruled out, continuing the cuts seen this year in June. Others didn't concur. 'This number will not have any impact on the policy decision and hence a status quo can be expected,' said Madan Sabnavis, chief economist at Bank of Baroda . Live Events ET Bureau Stimulus for Demand CareEdge chief economist Rajani Sinha said, 'The Reserve Bank of India has already front-loaded the rate cuts anticipating moderation in inflation, hence we do not expect further rate cuts, unless economic growth weakens materially.' A basis point is 0.01 percentage point. In its last policy announcement on June 5, the RBI cut the repo rate by more than expected 50 basis points, delivering a cumulative one percentage point reduction in calendar 2025 to boost demand. It also lowered the cash reserve ratio (CRR) by 100 bps, but shifted its stance to neutral from accommodative, suggesting a pause on monetary action. Nayar reasons that a slowing economy may bring an August rate cut by the central bank's monetary policy committee (MPC). 'Given the weakness in a majority of the available high-frequency indicators, we foresee the gross domestic product (GDP) growth to print at 6.0-6.5% in Q1FY26, the data of which will only be available at end-August i.e. after the MPC's meeting,' said Nayar. The Centre will release GDP data for the June quarter in August. The MPC meets August 4-6. Low inflation is expected to help prop up demand. 'The declining inflation is expected to provide a significant boost to the real wages of the households in FY26,' said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra). Jasrai said one more 25 basis point cut could still occur this fiscal year unless there are surprises from global developments or growth hits a slump. Food inflation The average retail inflation rate was at a 25-quarter low of 2.7% in the June quarter, lower than the central bank's forecast of 2.9%, while average wholesale inflation dropped to a five-quarter low of 0.4%. Food inflation, a major component of CPI, slipped to deflation, coming in at -1.1%, the lowest in over six years. Core inflation, which excludes volatile food and fuel prices and signals demand pressures, rose to 4.4% in June, the highest since September 2023, largely due to an uptick in jewellery. Food inflation dropped due to a favourable base effect and a fall in prices of vegetables (-19%), pulses (-11.8%), and meat & fish (-1.6%). Cereal inflation hit a 41-month low of 3.7%. Out of 22 major states and union territories, 10 recorded inflation above the national average, with Kerala leading at 6.7%, followed by Punjab (4.7%), Jammu and Kashmir (4.4%), Uttarakhand (3.4%), and Haryana (3.1%). 'Such variation is symptomatic of varying food prices due to producing and consuming states being apart,' said Sabnavis. Wholesale inflation Food inflation, which accounts for around one-fourth of the WPI weight, fell to a two-year low of -0.3% in June from 1.7% in May. Major contributors to food deflation included onions (-33.5%), potatoes (-32.7%), vegetables (-22.7%), and pulses (-14.1%). Fruit prices eased to 1.6% year-on-year in June compared to 10.2% in May. 'The drop in prices of pulses was due to a robust kharif output,' said Jasrai. Inflation in manufactured products, which account for 64.23% weight in the WPI, eased slightly to 1.97% in June from 2.04% in May. Within this category, vegetable & animal oils and fats recorded the highest inflation at 23.1%, followed by food products (7%), and tobacco products (2.8%). Inflation in primary articles and fuel & power contracted by 3.4% and 2.7%, respectively. 'The fuel & power and crude petroleum and natural gas prices declined during June due to benign global commodity prices,' said Jasrai.
Economic Times
2 hours ago
- Economic Times
Retail inflation hits over 6-year low of 2.10% in June; WPI turns negative
Retail inflation in India dropped to 2.1% in June, the lowest level since January 2019, driven by a sharp decline in food prices, official data showed Monday. This marked the fifth consecutive month that inflation based on the Consumer Price Index (CPI) remained below the Reserve Bank of India's (RBI) 4% target. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Stimulus for Demand Food inflation Tired of too many ads? Remove Ads Wholesale inflation India's key inflation gauge dropped to pre-pandemic lows on the back of a sharp decline in food inflation, triggering hopes of another rate cut by the Reserve Bank of India (RBI). Retail inflation in June based on the Consumer Price Index (CPI) dropped to 2.1%, the lowest in more than six years and just shy of the lower end of the central bank's 2-6% target range, official data released Monday RBI is mandated to target 4% retail inflation within the range. This is the fifth consecutive month that CPI inflation has printed below 4%. Retail inflation is at its lowest since January 2019, when it was 1.97%.The Wholesale Price Index (WPI) slipped into the deflation zone, hitting a 20-month low of -0.1% in June against 0.4% in May. The drop in the inflation rate was driven by a decline in food and fuel prices and a moderation in manufactured goods. ICRA chief economist Aditi Nayar said a 25 bps cut in August cannot be ruled out, continuing the cuts seen this year in didn't concur.'This number will not have any impact on the policy decision and hence a status quo can be expected,' said Madan Sabnavis, chief economist at Bank of Baroda CareEdge chief economist Rajani Sinha said, 'The Reserve Bank of India has already front-loaded the rate cuts anticipating moderation in inflation, hence we do not expect further rate cuts, unless economic growth weakens materially.'A basis point is 0.01 percentage point. In its last policy announcement on June 5, the RBI cut the repo rate by more than expected 50 basis points, delivering a cumulative one percentage point reduction in calendar 2025 to boost demand. It also lowered the cash reserve ratio (CRR) by 100 bps, but shifted its stance to neutral from accommodative, suggesting a pause on monetary reasons that a slowing economy may bring an August rate cut by the central bank's monetary policy committee (MPC).'Given the weakness in a majority of the available high-frequency indicators, we foresee the gross domestic product (GDP) growth to print at 6.0-6.5% in Q1FY26, the data of which will only be available at end-August i.e. after the MPC's meeting,' said Centre will release GDP data for the June quarter in August. The MPC meets August inflation is expected to help prop up demand.'The declining inflation is expected to provide a significant boost to the real wages of the households in FY26,' said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra). Jasrai said one more 25 basis point cut could still occur this fiscal year unless there are surprises from global developments or growth hits a average retail inflation rate was at a 25-quarter low of 2.7% in the June quarter, lower than the central bank's forecast of 2.9%, while average wholesale inflation dropped to a five-quarter low of 0.4%. Food inflation, a major component of CPI, slipped to deflation, coming in at -1.1%, the lowest in over six inflation, which excludes volatile food and fuel prices and signals demand pressures, rose to 4.4% in June, the highest since September 2023, largely due to an uptick in jewellery. Food inflation dropped due to a favourable base effect and a fall in prices of vegetables (-19%), pulses (-11.8%), and meat & fish (-1.6%). Cereal inflation hit a 41-month low of 3.7%.Out of 22 major states and union territories, 10 recorded inflation above the national average, with Kerala leading at 6.7%, followed by Punjab (4.7%), Jammu and Kashmir (4.4%), Uttarakhand (3.4%), and Haryana (3.1%).'Such variation is symptomatic of varying food prices due to producing and consuming states being apart,' said inflation, which accounts for around one-fourth of the WPI weight, fell to a two-year low of -0.3% in June from 1.7% in contributors to food deflation included onions (-33.5%), potatoes (-32.7%), vegetables (-22.7%), and pulses (-14.1%). Fruit prices eased to 1.6% year-on-year in June compared to 10.2% in May.'The drop in prices of pulses was due to a robust kharif output,' said in manufactured products, which account for 64.23% weight in the WPI, eased slightly to 1.97% in June from 2.04% in May. Within this category, vegetable & animal oils and fats recorded the highest inflation at 23.1%, followed by food products (7%), and tobacco products (2.8%). Inflation in primary articles and fuel & power contracted by 3.4% and 2.7%, respectively.'The fuel & power and crude petroleum and natural gas prices declined during June due to benign global commodity prices,' said Jasrai.
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Business Standard
3 hours ago
- Business Standard
Retail inflation drops to 2.1% in June; WPI slips into deflation at -0.13%
Vegetable and pulses prices see steepest fall in years; WPI turns negative too Shiva Rajora New Delhi India's retail inflation moderated further in June to 2.1 per cent from 2.82 per cent in May, aided by a positive base effect and a decline in prices in the food and beverage segment for the first time in over six years, offering room for the central bank's monetary policy committee to maintain status quo in its upcoming reviews. The last time the Consumer Price Index (CPI) reported this mild uptick was in January 2019 — at 1.97 per cent, data released by the National Statistics Office (NSO) on Monday showed. Separately, the Wholesale Price Index (WPI)-based factory gate inflation turned negative in June for the first time in 20 months, at -0.13 per cent as against 0.39 per cent in May, data by the Ministry of Commerce and Industry on Monday showed. The last time the WPI reported deflation was in October 2023, at -0.26 per cent. In retail inflation, the decline in food prices was mainly driven by a 19 per cent year-on-year (Y-o-Y) drop in vegetable prices — the sharpest pace of decline since December 2022 — and an 11.8 per cent (Y-o-Y) decline in pulses — the fastest fall in prices in over seven years. Spices and meat, which together have a 7.5 per cent weight in the CPI, also saw prices drop 3.03 per cent and 1.62 per cent, respectively. Rajani Sinha, chief economist at CareEdge Ratings, says that the good progress of the monsoon, adequate reservoir levels, and strong kharif sowing bode well for agricultural output and food price stability, and that close monitoring of the monsoon's spatial and temporal distribution remains crucial. 'The Reserve Bank of India (RBI) has already front-loaded the rate cuts anticipating moderation in inflation; hence, we do not expect further rate cuts unless economic growth weakens materially,' she added. Core inflation — which excludes volatile food and fuel components — edged up to 4.4 per cent in June, the highest since September 2023, on the back of a surge in gold prices and a steady increase in demand in the economy. Paras Jasrai, associate director at India Ratings & Research, says the rising core inflation might look concerning prima facie, but it was due to a sharp increase in prices of jewellery items, as gold prices rose to a 58-month high of 36 per cent due to tensions in West Asia. 'Services inflation inched up to a 22-month high of 4.1 per cent, indicative of steady demand in the services sector. However, over two-thirds of the items still have inflation of less than 4 per cent, pointing to a broader disinflationary profile of consumption items,' he said. The RBI may maintain a status quo in the upcoming review in view of the cumulative easing of 100 basis points done so far in 2025 and the change in stance to neutral from accommodative,' he added. Fuel prices decelerated to 2.78 per cent, while inflation in services like personal care (14.7 per cent), health (4.43 per cent), and transport (3.9 per cent) picked up pace in June. The NSO data further showed that retail prices rose 1.72 per cent in rural India and 2.56 per cent in urban areas. Among 22 major states and Union Territories (UTs) with a population of more than 5 million for which data is available, 10 states/UTs recorded an inflation rate higher than the national average. Kerala recorded the highest retail inflation of 6.71 per cent in June, while Telangana recorded deflation (-0.93 per cent). In the WPI, the deflation was led by a decline in the prices of primary food articles (-3.75 per cent), which fell for the third month in a row. This was driven by a decline in the prices of vegetables (-22.65 per cent), pulses (-14.1 per cent), potatoes (-32.7 per cent), onions (-33.5 per cent), and protein-rich food items like eggs, meat, and fish (-0.29 per cent). Meanwhile, the prices of factory-gate manufactured products decelerated to 1.97 per cent in June. This was led by a slowdown in prices of manufactured food products (6.99 per cent), paper products (1.52 per cent), chemicals (0.59 per cent), and rubber (0.47 per cent), among others. Prices of basic metals (3.14 per cent) and semi-finished steel (3.7 per cent) also dipped during the month. Fuel and power prices declined by 2.65 per cent in June, as the deceleration in global commodity prices — especially mineral oils — led to a fall in the prices of petrol (-6.57 per cent) and high-speed diesel (-5.12 per cent) for the 13th and 26th straight month, respectively. Cooking gas prices, however, rose by 2.68 per cent during June. 'The seasonal sequential uptick in food prices has been relatively modest in July 2025 so far. Besides, international crude oil prices have also eased somewhat in the ongoing month from the peak seen in June 2025, amid cooling tensions in West Asia, while remaining in deflationary territory. Overall, Icra expects the headline WPI to remain in deflationary territory in July 2025 despite an unfavourable base,' said Icra Ratings Chief Economist Aditi Nayar.
