By Our Business Correspondent
Indian benchmark indices retreated on Tuesday as a sharp sell-off in heavyweight information technology (IT) stocks outweighed gains in the pharmaceutical and consumer durable sectors. The session, marked by volatility due to the June monthly derivatives expiry, saw the Nifty 50 slip below the 23,900 threshold.
The S&P BSE Sensex declined 249.70 points (0.33%) to settle at 76,478.67, while the Nifty 50 shed 80.50 points (0.34%) to close at 23,865.75. This marks the second consecutive day of losses for both indices, which have now shed roughly 0.8% each over the last two trading sessions.
Despite the gloom at the top, the broader markets displayed resilience. The BSE 150 MidCap Index advanced 0.45% and the BSE 250 SmallCap Index rallied 0.51%. Market breadth remained positive, with 2,349 stocks advancing against 1,884 declines on the BSE.
Economy: Industrial Output Growth Accelerates
Official data released today showed India’s industrial landscape gaining momentum. The Index of Industrial Production (IIP) growth accelerated to 5.1% in May, up from 4.9% in April.
- Sectoral Leaders: Electricity and gas supply surged 9.9%, while manufacturing—the index’s heaviest component—grew 5.5%.
- Use-Based Categories: Capital goods led the pack with a robust 13% growth, followed by consumer durables (7.2%) and infrastructure/construction goods (5.9%). Mining and quarrying, however, contracted by 1.6%.
Stocks in Spotlight
Eicher Motors Slumps on Delhi EV Policy
The day’s most notable laggard was Eicher Motors, which saw its shares tumble 4.38% following the Delhi Cabinet’s approval of the Delhi EV Policy 2026-2030. Coming into effect on July 1, 2026, the policy mandates a massive transition to electric mobility, including a total phase-out of new petrol and CNG two-wheeler registrations by April 2028. Investors penalized the stock over concerns regarding Royal Enfield’s relatively thin electric vehicle portfolio.
Corporate Action and Order Wins
- Adani Ports & SEZ (+1.91%): The company inked a definitive agreement with the MSC Group. Under the deal, MSC’s terminal arm, Terminal Investment (TiL), will acquire a 49% stake in Adani Vizhinjam Port.
- Shilpa Medicare (+4.43%): Shares jumped after its subsidiary, Shilpa Biologicals, partnered with Finland’s Orion Corporation to co-develop an intravenous nivolumab biosimilar for European markets.
- Godrej Properties (+2.02%): The real estate major announced the outright purchase of a 47-acre land parcel off Old Mahabalipuram Road (OMR) in South Chennai.
- Jagsonpal Pharmaceuticals (+4.09%): The stock rallied as the company announced its entry into the hospital segment via an agreement to acquire an 85% equity stake in Aequitas Healthcare.
- Order Book Boosters: KEC International (+1.38%) and Kalpataru Projects International (+1.70%) both reported significant order wins, securing contracts worth ₹1,754 crore and ₹2,957 crore, respectively.
Global Cues and Macro Indicators
Global markets presented a mixed picture. Wall Street saw a historic overnight session, with the Dow Jones Industrial Average closing above 52,000 for the first time, buoyed by Alphabet’s inclusion in the index. Asian markets were largely positive, led by China, where manufacturing activity returned to expansion territory in June with a PMI reading of 50.3.
In Europe, indices traded higher as investors parsed fresh economic data, including confirmation of a 0.6% growth rate for the British economy in the first quarter. Notably, the European Commission announced a 47% reduction in duty-free steel import quotas effective July 1.
Key Macro Numbers:
- Rupee: Edged slightly lower to 94.65 against the US Dollar.
- Yields: India’s 10-year benchmark bond yield dipped to 6.707%.
- Commodities: Brent crude ticked up 0.14% to $73.25 per barrel, while MCX Gold futures rose marginally to ₹142,532.
IPO Watch: Aastha Spintex Subscribed 1.48x
The initial public offering (IPO) of Aastha Spintex continued to see steady traction. As of 16:50 IST on June 30, the issue was subscribed 1.48 times. Bidding for the IPO, which features a price band of ₹125–₹136 per share, remains open until July 1.