Indian Banks Are in a Good Moody

June 03, 2025

TLDR

📈 Market Recap: June 03, 2025

On June 3, 2025, Indian equity markets extended their losing streak for the third consecutive session, with the BSE Sensex plunging 636.24 points (0.78%) to close at 80,737.51, and the NSE Nifty 50 dropping 174.10 points (0.70%) to settle at 24,542.50. Investor wealth eroded by approximately ₹2.34 lakh crore during the session.

Key Drivers:

  • Global Trade Uncertainty: Ongoing concerns over global trade settlements and geopolitical tensions, particularly involving major economies, weighed heavily on investor sentiment.

  • Foreign Fund Outflows: Continued selling by foreign portfolio investors amid global uncertainties contributed to market declines.

  • Sector Performance: Most sectors ended in the red, with financials, IT, and metal stocks leading the decline. However, the realty sector bucked the trend, closing higher by 1%.

Today’s Top Stories:

  1. HDB Financial readies Mega IPO — SEBI clears ₹12,500 cr issue; strong loan growth but provisioning uptick keeps valuation debate alive.

  2. Adani Slips on U.S. LPG Probe News — Reuters report of sanctions inquiry shaves up to 1.5 % off group stocks. $ADANIPORTS.NSE ( ▲ 1.34% ) 

  3. Moody’s Upbeat on India Banks — Firm domestic demand should cap NPLs at 3 %, supporting credit growth through FY26.

  4. US–India Trade Deal Nears Signing — Tariff-cut talks progress; decision expected by 9 July, boosting export optimism.

  5. TCS - Virgin Atlantic 20-Year Tie-Up Extended for 7 More Years — AI-first revamp deepens two-decade partnership, bolstering aviation pipeline. $TCS.NSE ( ▲ 0.02% ) 

MARKETS

Market Snapshot

Nifty 50 Index Heatmap

Top Gainers & Losers

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TOP STORIES

1. HDB Financial Readies Mega IPO

DALL-E

  • Fund-raise: NBFC to issue fresh shares worth up to ₹12,500 cr after regulator’s nod; likely one of FY26’s biggest floats. 

  • Financials: FY25 revenue rose 15 % to ₹16,300 cr while Q4 net profit hit ₹531 cr despite higher provisions.

  • Market angle: Street pegs valuation near ₹90,000 cr; HDFC Bank (parent) ended flat as analysts see limited near-term dilution. 

2. Adani Slips on U.S. LPG Probe News

DALL-E

  • Allegation: Reuters said U.S. prosecutors are examining whether the group brought sanctioned LPG via the Mundra port. 

  • Company stance: Adani “categorically” denied deliberate violations or knowledge of any investigation.

  • Market impact: Adani Ports –1.5 %, Adani Enterprises –1.2 %; broader indices already under pressure from global risk-off.

3. Moody’s Upbeat on India Banks

DALL-E

  • Credit view: Ratings major expects domestic demand to keep NPLs contained at 2-3 % over the next 12 months. 

  • Strategic take: Strengthening bank asset quality underpins lending headroom ahead of an anticipated RBI rate-easing cycle.

  • Market reaction: PSU-bank and mid-cap lender shares trimmed intraday losses on the commentary.

4.  US–India Trade Deal Nears Signing

DALL-E

  • Negotiations: Washington and New Delhi aim to seal a deal by 9 July; talks resume in Delhi tomorrow. 

  • Sticking points: U.S. seeks lower farm tariffs and wider market access; India wants smoother exports and defence tech transfer.

  • Market lens: Export-oriented stocks and the rupee gained briefly on hopes of tariff relief and higher FDI.

5. TCS-Virgin Atlantic 20-Year Tie-Up Extended for 7 More Years

DALL-E

  • Deal scope: The Tata group IT major will build a cloud-first, AI-driven digital core and a 24/7 tech command centre for the airline. 

  • Strategic upside: TCS strengthens its aviation vertical as carriers ramp up tech spending; no financial details disclosed, but analysts see a multi-hundred-million USD value.

  • Market move: TCS shares held steady, with brokers citing improved deal-win visibility in FY26.

GYAANI HOT TAKES

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