Indian stock markets are showing a flat trend in the pre-opening session today, with investors closely monitoring the release of the India Manufacturing Purchasing Managers' Index (PMI) for June. Both the Sensex and Nifty are expected to open with minimal changes as traders assess the latest economic data and global cues.
The pre-open session, which runs from 9:00 AM to 9:15 AM, is a crucial window for price discovery and minimizing volatility before regular trading begins at 9:15 AM. During this session, orders can be placed, modified, or cancelled in the initial eight minutes (9:00 AM to 9:08 AM), helping to determine the equilibrium price based on demand and supply. This mechanism helps stabilize the market, especially after significant overnight events or announcements.
The HSBC India Manufacturing PMI is a key indicator of the health of the manufacturing sector. The index is derived from a survey of 500 manufacturing companies and reflects changes in new orders, output, employment, suppliers' delivery times, and stocks of purchases. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signals contraction.
In June 2025, the HSBC India Manufacturing PMI rose to 58.4, up from 57.6 in May, signaling the strongest improvement in operating conditions since April 2024. This increase was driven by a solid rise in new business and a notable pickup in growth for new export orders. The combination of resilient global demand and increasing backlogs of work encouraged manufacturers to expand their workforce, with employment growth reaching its highest level in the current series.
A strong Manufacturing PMI reading typically boosts market sentiment, as it indicates robust economic activity and potential for corporate earnings growth. Conversely, a weaker-than-expected PMI can lead to concerns about slowing economic growth and may trigger a sell-off in manufacturing stocks. The latest PMI data suggests that the Indian manufacturing sector is on a strong footing, which could provide support to the market.
Besides the Manufacturing PMI, several other factors are influencing market sentiment:
On Monday, the Indian market closed in the red, with the BSE Sensex dropping 452.44 points (0.54%) to finish at 83,606.46, and the NSE Nifty slipping 120.75 points (0.47%) to close at 25,517.05. This decline was attributed to profit booking in financial stocks near record highs, which offset the positive impact of improved global risk appetite.
However, GIFT Nifty signals a positive start. The market is expected to remain range-bound in the near term, with stock-specific action likely to continue. Investors are advised to closely monitor global cues, economic data releases, and corporate developments for further direction.
