Indian benchmark indices are expected to open on a cautious note on June 2, with GIFT Nifty indicating a negative start amid mixed cues from Asian markets and continued foreign investor selling. Market participants will closely monitor developments surrounding Ola Electric, Alkem Laboratories, Equitas Small Finance Bank, NHPC, Wipro and other key stocks.
Key Takeaways
- GIFT Nifty signals a weak opening for domestic markets.
- Rupee opens marginally lower at 95.05 against the US dollar.
- FIIs remained net sellers while DIIs continued buying support.
- Ola Electric launches Qualified Institutional Placement (QIP).
- Equitas SFB gains attention after RBI approval for Mirae Asset MF stake acquisition.
- Asian markets trade mixed, with South Korea's Kospi falling sharply.
Global Cues Remain Mixed
Asian equities traded cautiously on Tuesday as concerns over the durability of the Middle East ceasefire weighed on investor sentiment despite continued optimism around artificial intelligence-linked sectors. South Korea's Kospi fell as much as 2.3%, while Japan's Nikkei 225 declined 1.9%. U.S. futures also traded lower in early deals.
Rupee Opens Slightly Lower
The Indian rupee opened marginally weaker at 95.05 per US dollar compared to the previous close of 95, reflecting cautious sentiment ahead of market opening.
FIIs Continue Selling, DIIs Provide Support
Foreign Institutional Investors (FIIs) remained net sellers on June 1, offloading equities worth ₹3,912 crore. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹5,109 crore, helping offset foreign outflows and providing support to domestic markets.
Stocks in Focus
Ola Electric
Ola Electric Mobility has launched its Qualified Institutional Placement (QIP), fixing the floor price at ₹37.74 per share. The fundraising exercise is expected to remain closely watched by investors.
Alkem Laboratories
Nearly 17.88 lakh shares, representing around 1.5% equity worth approximately ₹930 crore, changed hands in a block deal involving Alkem Laboratories, making the stock one of the key counters to watch.
Equitas Small Finance Bank
The Reserve Bank of India has approved Mirae Asset Mutual Fund's proposal to acquire up to 9.5% stake in Equitas Small Finance Bank, a development likely to drive investor interest in the stock.
DEE Development Engineers
DEE Development Engineers secured a Letter of Intent worth ₹206.55 crore for manufacturing and supply of critical piping assemblies, strengthening its order book.
Lloyds Metals and Energy
BNP Paribas Financial Markets acquired a 0.15% stake in Lloyds Metals and Energy through a block transaction valued at over ₹161 crore.
Macro Signals Support Economy
India's factory output, measured by the Index of Industrial Production (IIP), expanded 4.9% in April, driven largely by manufacturing growth of 6.2%. Meanwhile, the government met its FY26 fiscal deficit target of 4.4% of GDP, reflecting continued fiscal discipline.
Additionally, a senior government official indicated that India's exports recorded double-digit growth during April-May, pointing to continued strength in external trade.
IPO and SME Market Activity
Merritronix's IPO received strong investor interest, garnering 14.84 times subscription on the first day of bidding, led by retail and non-institutional investors. Meanwhile, Yaashvi Jewellers and Harikanta Overseas are set to list on the SME platform.
