Media Stocks Rally While Metals Drag; Nifty Ends Lower Despite Recovery - Paper by Pocketful

Jun 05, 2026

HDFC Asset Management Company (+1.12%): Stock rose after HDFC Mutual Fund temporarily restricted lump-sum subscriptions in its Gold ETF and Gold ETF FoF amid prevailing market conditions, reflecting strong demand for gold-linked investment products.
CG Power & Industrial Solutions (-0.01%): Stock remained largely unchanged after the company commissioned its extra-high-voltage (EHV) switchgear manufacturing facility in Nashik, Maharashtra. The new facility is expected to enhance manufacturing capabilities and strengthen the company’s presence in the power transmission equipment segment.
Aurobindo Pharma (-0.45%): Stock traded marginally lower despite the company receiving final USFDA approval for Tofacitinib Tablets (5 mg and 10 mg), a generic equivalent of Xeljanz Tablets. While the approval enables an immediate U.S. launch and strengthens its generics portfolio, broader market weakness kept investor sentiment subdued.
InterGlobe Aviation (-0.61%): Stock declined after IndiGo announced the temporary suspension of operations on select international routes from July to September 2026, citing softer demand and a challenging cost environment. The move raised concerns about near-term international traffic growth and revenue prospects.

Media | Nifty Media (+3.48%): The Media Index emerged as the top-performing sectoral index, driven by strong gains in Network18 Media, Zee Entertainment Enterprises, and Saregama India. Robust buying interest across media stocks boosted sentiment despite weakness in the broader market.
Realty | Nifty Realty (+0.56%): The Nifty Realty Index was among the best-performing sectoral indices, led by gains in Prestige Estates, Lodha Developers, and Phoenix Mills. Sentiment remained positive on expectations that stable interest rates would support housing demand and maintain favourable financing conditions for both homebuyers and developers.
Metal | Nifty Metal (-1.60%): The Nifty Metal Index emerged as the worst-performing sectoral index, with only 2 constituents advancing while 12 stocks closed lower. The decline was driven by broad-based selling in metal counters amid concerns over softer commodity prices, demand uncertainty, and profit booking across the sector.
IT | Nifty IT (-0.99%): The Nifty IT Index declined with 1 Gainer against 9 losers, as sharp losses in heavyweight stocks weighed on the sector. Sentiment remained subdued amid profit booking and concerns over near-term demand trends in key global markets.

Technical Level: Nifty opened with a minor gap-up and faced resistance near 23,510 in early trade. The index gradually drifted lower through the session, forming lower lows and finding support around 23,280 during the second half. A mild recovery in the final hour helped trim some losses, but the index ended the day in negative territory.
Advance-Decline Ratio: Market breadth was slightly negative, with 1,623 advances against 1,694 declines, indicating broader weakness across stocks.
The Big Picture: China is accelerating its AI ambitions by attracting top talent from U.S. tech firms. Former OpenAI researcher Yao Shunyu has joined Tencent as Chief AI Scientist and aims to build Artificial General Intelligence (AGI) in China. The development highlights intensifying competition in the U.S.-China AI race, with Chinese tech giants increasingly recruiting experienced researchers from companies such as OpenAI, Google DeepMind, Meta, and Alphabet to strengthen their AI capabilities.
FII/DII Activity (June 04, 2026):DII bought ₹4,360 crore, while FII sold ₹4,447 crore, reflecting strong domestic support despite continued foreign outflows.

IPO Corner: Hexagon Nutrition IPO opened for subscription today and is set to attract investor attention amid ongoing activity in the IPO segment.
Macro: China Balance of Trade (May) & U.S. Existing Home Sales (May) Investors will track the data for signals on global demand, economic momentum, and potential market direction next week.
Index Watch: Nifty opened with a minor gap-up but faced resistance near 23,510 in early trade. The index remained under pressure through most of the session, making lower lows and testing support around 23,280 in the second half. A mild recovery near the close helped trim losses, but the index ended in negative territory. Immediate support is placed near 23,250–23,280, while resistance is seen around 23,450–23,500. A decisive move above resistance could improve near-term sentiment.

Profit Booking - Selling stocks after a price rise to secure gains, often causing temporary declines despite positive fundamentals.

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