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Benchmarks continue to trade choppy amid US-China trade tensions
Apr-09-2025

Indian bourses continued to trade lower in late afternoon session as the US tariffs came into effect and trade tensions between US-China intensifies. The key gauges continued their choppy trade as traders remained cautious about the implications of trade tension between US and China after China vowed to ‘fight to the end’ after Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods. However, losses remained capped as some support came after RBI reduced the policy repo rate by 25 basis points to 6.00 per cent with immediate effect, for the second time in a row.

On the global front, Asian equity markets are trading mostly in red as U.S. President Donald Trump pressed ahead with sweeping new global tariffs, including over 100 percent in levies against Chinese goods. European equity markets were trading lower.

The BSE Sensex is currently trading at 73840.24, down by 386.84 points or 0.52% after trading in a range of 73673.06 and 74103.83. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index down by 0.84%, while Small cap index was down by 1.21%.

The few gaining sectoral indices on the BSE were FMCG up by 1.50%, Auto up by 0.22% and Consumer Durables up by 0.15%, while IT down by 2.18%, Realty down by 1.88%, TECK down by 1.67%, Metal down by 1.61% and Capital Goods down by 1.57% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 2.87%, Hindustan Unilever up by 2.61%, Titan Co up by 1.75%, Power Grid Corporation Of India up by 1.45% and Ultratech Cement up by 1.07%. On the flip side, SBI down by 3.19%, Larsen & Toubro down by 2.98%, Tech Mahindra down by 2.88%, Infosys down by 2.39% and Tata Steel down by 2.27% were the top losers.

Meanwhile, the Asian Development Bank (ADB) in its latest report titled ‘the Asian Development Outlook (ADO) April 2025’ has said that India’s gross domestic product (GDP) is expected to expand by 6.7% in fiscal year (FY) 2025, on account of higher domestic demand, rising rural incomes, a strong services sector, and moderating inflation that will boost consumer confidence.

 ADB further noted that favorable monetary and fiscal policies are expected to sustain the growth momentum, with GDP projected to increase by 6.8% in FY2026. It said these growth forecasts were finalized prior to the April 2 announcement of new tariffs by the US administration, so the baseline projections only reflect tariffs that were in place previously.

According to the report, consumption will be a major growth driver, fueled by rising rural incomes and increased demand from urban middle-class and affluent households thanks to reductions in personal income tax rates. Additionally, moderating inflation is expected to further boost consumer sentiment with rates projected at 4.3% in FY2025 before declining slightly to 4.0% in FY2026. Falling inflation would create policy space for more cuts to repo rate even with global financial uncertainty.

ADB further said that the services sector will remain a key growth driver, supported by the expansion of business services exports, education, and health services. The agriculture sector is expected to maintain strong growth in FY2025, driven by robust winter crop sowing, particularly wheat and pulses. Meanwhile, the manufacturing sector is anticipated to rebound after experiencing tepid growth in FY2024.

The CNX Nifty is currently trading at 22402.60, down by 133.25 points or 0.59% after trading in a range of 22353.25 and 22468.70. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Nestle up by 2.87%, Hindustan Unilever up by 2.66%, Tata Consumer Products up by 1.82%, Titan Company up by 1.74% and Hero MotoCorp up by 1.70%. On the flip side, Wipro down by 4.53%, SBI down by 3.22%, Trent down by 3.00%, Larsen & Toubro down by 2.99% and Tech Mahindra down by 2.84% were the top losers.

Asian markets are trading mostly in red; Jakarta Composite plunged 33.66 points or 0.56% to 5,962.48, KOSPI dropped 40.53 points or 1.77% to 2,293.70, Nikkei 225 slipped 1298.55 points or 4.09% to 31,714.03, Straits Times fell 78.08 points or 2.25% to 3,391.39 and Taiwan Weighted lost 1068.19 points or 6.14% to 17,391.76, while Hang Seng advanced 136.81 points or 0.68% to 20,264.49 and Shanghai Composite strengthened 41.26 points or 1.29% to 3,186.81.

European markets were trading lower; UK’s FTSE 100 decreased 199.88 points or 2.59% to 7,710.65, France’s CAC fell 188.06 points or 2.72% to 6,912.36 and Germany’s DAX lost 624.94 points or 3.18% to 19,655.32.
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