HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Indices end lower for 2nd straight day amid escalating geopolitical tensions
May-09-2025

Extending previous day's decline, Indian equity benchmarks tumbled over a percent on Friday as market participants indulged in reducing their positions after the army reported multiple overnight drone and munition attacks by Pakistani forces along the western border, fueling concerns of further escalation between the two nuclear-armed nations. 

Some of the important factors in today’s trade: 

RBI relaxes norms for investments by FPIs in corporate debt securities: The RBI has relaxed norms for investments by foreign portfolio investors (FPIs) in corporate debt securities through the general route by withdrawing certain requirements to comply with the short-term investment limit and the concentration limit.

FIIs extend buying streak to 16th session: The exchange data showed foreign institutional investors (FIIs) extended their buying spree to the 16th consecutive session, as FIIs bought domestic equities worth Rs 2,008 crore in trade on May 8, 2025. 

Govt expands credit guarantee scheme for startups: With an aim to address the financing needs of innovation-driven startups, the DPIIT, Ministry of Commerce and Industry has expanded the Credit Guarantee Scheme for Startups (CGSS) which increases the ceiling on guarantee cover per borrower under the Scheme from Rs 10 crore to Rs 20 crore.

Rupee rises against US Dollar: Indian rupee pared its initial losses and settled for the day higher against the US dollar, as likely intervention by the Reserve Bank of India helped contain excess depreciation of the rupee.

Positive global cues: European markets were trading higher as investors looked ahead to discussions between the U.S. and China scheduled for this weekend. Asian markets settled mostly higher on Friday as investors parsed China's April trade data and looked ahead to crucial Sino-U.S. talks scheduled for this weekend. 

Finally, the BSE Sensex fell 880.34 points or 1.10% to 79,454.47, and the CNX Nifty was down by 265.80 points or 1.10% to 24,008.00. 

The BSE Sensex touched high and low of 80,032.93 and 78,968.34 respectively. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.10%, while Small cap index was down by 0.30%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.67%, Consumer Durables up by 1.29%, Industrials up by 1.10%, Metal up by 0.17% and PSU up by 0.12%, while Realty down by 2.08%, Utilities down by 1.50%, Power down by 1.11%, Bankex down by 1.04% and Energy down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 4.38%, Tata Motors up by 3.90%, Larsen & Toubro up by 3.77%, SBI up by 1.39% and Asian Paints up by 0.02%. On the flip side, ICICI Bank down by 3.16%, Power Grid Corporation down by 2.70%, Ultratech Cement down by 2.15%, Bajaj Finance down by 2.02% and Reliance Industries down by 1.93% were the top losers.

Meanwhile, India and Chile have signed terms of reference (ToRs) to negotiate a comprehensive free trade agreement. In 2006, both countries had implemented a preferential trade agreement (PTA) and are now planning to widen its scope for a comprehensive economic partnership agreement (CEPA). An expanded PTA was subsequently signed in September 2016 and became effective from May 16, 2017, further in April 2019, both countries had agreed to pursue a further expansion of the PTA. 

With the both countries seeking to extend their economic engagement, the commerce ministry has indicated that the both sides have expressed their intention to negotiate a CEPA to unlock the full potential of their trade and commercial relationship, boosting employment, facilitating investment promotion, and cooperation and exports. The CEPA aims to build upon the existing PTA between the two nations and seeks to encompass a broader range of sectors, including digital services, investment promotion and cooperation, MSME (Micro, Small and Medium Enterprises), and critical minerals.

India, Chile have emphasised the importance of enhancing the existing trade framework to unlock new opportunities for growth. In this spirit, the two leaders acknowledged the signing of the mutually agreed Terms of Reference (ToR) and welcomed the launch of negotiations for a CEPA, aiming to establish a balanced, ambitious, comprehensive, and mutually beneficial agreement for a deeper economic integration. Both sides reiterated their shared vision for strengthening bilateral relations and look forward to fruitful discussion during the first round scheduled for May 26 to 30, 2025, in New Delhi.

The CNX Nifty traded in a range of 24,164.25 and 23,935.75. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 4.17%, Larsen & Toubro up by 3.84%, Tata Motors up by 3.83%, Bharat Electronics up by 2.93% and SBI up by 1.50%. On the flip side, ICICI Bank down by 3.24%, Power Grid Corporation down by 2.74%, Grasim Industries down by 2.22%, Ultratech Cement down by 2.22% and Shriram Finance down by 2.08% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 40.73 points or 0.48% to 8,572.34, France’s CAC rose 58.74 points or 0.76% to 7,753.18 and Germany’s DAX gained 155.65 points or 0.67% to 23,508.34. 

Asian markets settled mostly higher on Friday tracking Wall Streets’ gains overnight and eased concerns over ongoing trade war after the US President Donald Trump unveiled the framework of a trade agreement with the United Kingdom and also signaled upcoming talks with China this week would be more substantial than initially thought. However, Chinese shares dropped despite upbeat April trade data, with exports rising 8.1% in dollar terms compared with a year earlier and imports shrinking 0.2%.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,342.00

-10.00

-0.30

Hang Seng

22,867.74

91.82

0.40

Jakarta Composite

6,832.80

5.05

0.07

KLSE Composite

1,546.50

3.76

0.24

Nikkei 225

37,503.33

574.70

1.53

Straits Times

3,876.16

27.94

0.72

KOSPI Composite

2,577.27

-2.21

-0.09

Taiwan Weighted

20,915.04

371.64

1.78
  RELATED NEWS >>
Most Viewed >>
April 29 , 2025
Trading in block deal window in T+0 settlement
May 03 , 2025
Bitcoin crosses $97,000 as institutional deman
April 30 , 2025
RBI launches 3 key surveys for monetary policy
May 06 , 2025
88% equity mutual funds offer negative returns
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.