Benchmark indices opened higher on June 1, tracking positive global cues despite a rebound in crude oil prices. Strength across Asian markets and fresh record highs on Wall Street helped offset concerns over elevated oil prices and continued foreign institutional investor (FII) selling.
The BSE Sensex opened 427.28 points, or 0.57 per cent, higher at 75,203, while the NSE Nifty 50 began the session with a gap-up of 106.75 points, or 0.45 per cent, at 23,654.50, broadly in line with GIFT Nifty indications.
However, the early momentum proved short-lived as investors turned cautious after the opening rally. Within the first hour of trade, both benchmark indices gave up most of their gains and slipped into flat territory.
At around 10:15 AM, the Sensex was up just 25 points near the 74,800 mark, while the Nifty 50 was trading flat-to-negative, down about 5 points at around 23,540.
The broader market remained under pressure and underperformed the benchmark indices. The Nifty Midcap 100 slipped nearly 1 per cent, while the Nifty Smallcap 100 declined about 0.25 per cent, indicating weakness beyond the frontline stocks.
Sectorally, the trend was mixed. PSU Bank, FMCG, and Consumer Durables were among the biggest laggards, each falling more than 1 per cent. On the other hand, IT stocks continued to attract buying interest, with the Nifty IT index surging around 3 per cent, led by Infosys and midcap IT stocks such as Persistent Systems, Coforge and Mphasis. The Nifty Media index gained about 2.5 per cent, while the Nifty Pharma index rose nearly 0.5 per cent.
Banking stocks also remained under pressure. The Nifty Bank index, which tracks 14 major banking stocks, was down more than 0.6 per cent at around the 53,900 level, dragged lower primarily by losses in PSU banks.
India-US Trade Talks Resume
Apart from supportive global cues, investor sentiment was also lifted by the resumption of trade talks between India and the United States.
A high-level US delegation led by chief negotiator Brendan Lynch arrived in India on June 1 for a four-day visit to advance negotiations on the proposed India-US Bilateral Trade Agreement (BTA). The talks, scheduled until June 4, will focus on finalising an interim trade agreement and pushing forward discussions under the broader BTA framework.
"It is proposed to finalise the details of the Interim Agreement and take forward the negotiations under the broader BTA on multiple areas such as Market Access, Non-Tariff Measures, Customs and Trade Facilitation, Investment Promotion, Economic Security Alignment," the Ministry said in a statement.
The talks in New Delhi come after an Indian delegation visited Washington in April and follow the February 7 Joint Statement, under which both countries agreed to work on an interim trade deal and a broader bilateral trade agreement.
