The Indian equity market is reacting sharply to the latest political developments, swinging from optimism to pessimism. Indices are in a free fall downward spiral in todays trade, as trends reveal that INDIA block has put up a better fight than anticipated and that Prime Minister Narendra Modi-led NDA is unlikely to win with a huge margin. BSE Sensex and Nifty50 have plummeted nearly 8%, a stark reversal from Monday’s 3% gains driven by exit poll projections of a decisive NDA victory.

Excel Realty N Infra Ltd, Heritage Foods Ltd, Anuroop Packaging Ltd and Moschip Technologies Ltd are among the other gainers in the BSE’s ‘B’ group today, 04 June 2024.

The US dollar slumped to its lowest level in nearly two months as softer than expected US data reaffirmed hopes of a Federal rate cut. Data showed that US manufacturing activity slowed for a second consecutive month in May, while construction spending unexpectedly fell in April due to declines in non-residential activity. The ISM Manufacturing PMI for May contracted to 48.7, falling below both the expected 49.6 and April’s 49.2, as per the ISM data. Currently, US dollar index futures are quoting at 104.03, down marginally on the day whereas US benchmark treasury yields declined to around 4.4%. Markets now await the Nonfarm Payrolls report for May, due later this week, which may influence the Fed’s future decisions. Among the basket currencies, EURUSD and GBPUSD were marginally higher at $1.0908 and $1.2799 respectively.

Wipro announced that it has appointed Bruno Schenk as the country head and managing director (MD) for Switzerland effective immediately.

Government-owned shares witnessed intense selling pressure as analysts feared that the relatively poor showing of the Modi-government may impact its reforms agenda.