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Benchmarks to make negative start despite positive global cues
May-13-2025

Indian equity markets are likely to make a negative start on Tuesday, despite positive global cues and easing geopolitical tensions between India and Pakistan. Investors will also be closely watching the release of April's retail inflation data later in the day.

Some of the key factors to be watched:

India proposes retaliatory duties against US over steel, aluminium tariffs in WTO: India has proposed to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on steel and aluminium in the name of safeguard measures.

India rejects UK's data exclusivity demand in FTA to shield generics: India has not accepted the demand of the UK for inclusion of a data exclusivity provision in the free trade agreement, announced on May 6, in a bid to protect the interests of the domestic generic drugs industry.

US-China deal to roll back high tariffs presents challenges, opportunities for India: A private report said that recent decision by the US and China to suspend their tariff hikes for 90 days presents both challenges and opportunities for India. 

Small private airports' capex likely to rise 50-60% annually over next 3 years: The ratings agency Crisil said that Capital expenditure (capex) of small private airports is expected to rise 50-60 per cent annually over the next three years, driven by capacity expansion on account of a substantial increase in terminal utilisation levels.

Sugar stock will be in focus: All India Sugar Trade Association said that India exported 4.24 lakh tonnes of sugar till April of the ongoing 2024-25 marketing year with maximum shipments of 92,758 tonnes to Somalia.

On the global front: The US markets ended in green on Monday following the US-China trade deal that drastically reduces the massive tariffs on each other's goods. Asian markets are trading mostly in green on Tuesday as traders were optimistic over easing tariff concerns.  

Back home, Indian equity benchmarks recorded their biggest single-day gains in absolute terms on Monday, skyrocketing nearly 4 per cent, after India and Pakistan reached an understanding to stop military actions and US and China announced a deal to lower tariffs significantly. Finally, the BSE Sensex rose 2975.43 points or 3.74% to 82,429.90, and the CNX Nifty was up by 916.70 points or 3.82% to 24,924.70.             

Some of the important factors in trade:

Indian economy projected to grow at 6.5% in FY26: The Confederation of Indian Industry (CII) president Sanjiv Puri has said that India's GDP is projected to grow at 6.5 per cent in the current fiscal (FY26) and the country's economy is resilient enough to overcome the short-term impact of geopolitical issues. 

First Round of India-New Zealand FTA negotiation concludes: In a major step towards expanding bilateral trade and investment engagement, the first round of negotiations for the India-New Zealand Free Trade Agreement (FTA) concluded successfully on May 9,2025 in New Delhi. The negotiations were held from May 5, 2025-May 9, 2025. 

India's forex reserves fall $2.06 billion: Reserve Bank of India (RBI) said that India's foreign exchange reserves (Forex) fell $2.06 billion to $686.06 billion in the week that ended on May 2, after extending gains for the eighth straight week.  


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