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Sensex, Nifty trade under pressure amid weakness in global peers
May-22-2025

Indian equity benchmarks made negative start on Thursday following the broadly negative cues from Wall Street overnight as well as weakness in Asian counterparts, amid rising U.S. treasury yields on concerns about the fiscal impact of a new U.S. tax bill on the country's deficit. Sensex and Nifty are trading under pressure with cut of around a percent each in early deals ahead of the flash estimates of India’s manufacturing and services PMI for May to be out later in the day. Traders avoided to take any positions amid the weekly F&O expiry later in the day. 

On the sectoral front, automotive component sector's stocks are in focus as ratings agency Crisil said that domestic automotive component sector is expected to clock 7-9 per cent revenue growth this fiscal, mirroring last fiscal, driven by sustained demand momentum from two-wheelers and passenger vehicles segments especially utility vehicles, which account for nearly half of the overall revenue. In stock specific development, IndusInd Bank rose despite posting a net loss of Rs 2,236 crore in Q4.

The BSE Sensex is currently trading at 80778.92, down by 817.71 points or 1.00% after trading in a range of 80727.11 and 81323.24. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.35%, while Small cap index was up by 0.03%.

The only gaining sectoral indices on the BSE were Telecom up by 0.34% and Realty up by 0.06%, while FMCG down by 1.35%, IT down by 1.32%, Auto down by 1.15%, Consumer Durables down by 0.98% and TECK down by 0.94% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 0.96%, Indusind Bank up by 0.96%, Tata Steel up by 0.40% and Bharti Airtel up by 0.15%. On the flip side, Power Grid down by 2.31%, Tech Mahindra down by 2.03%, HCL Technologies down by 1.84%, Nestle down by 1.75% and ITC down by 1.70% were the top losers.

Meanwhile, India and the US are likely to announce an interim trade agreement before July 8, with the country seeking full exemption from the additional 26 per cent tariff on domestic goods. The US on April 2 imposed an additional 26 per cent reciprocal tariff on Indian goods, but suspended it for 90 days till July 9. However, the 10 per cent baseline tariff imposed by America remains in place. India’s endeavour to protect its sensitive sectors may entail some quota or minimum import price (MIP). Such sectors include agri goods and dairy. Recently, Commerce and Industry Minister Piyush Goyal was in Washington to give an impetus to the trade talks. He held meetings with US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick.

At present, the Trump administration requires approval from the US Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India. India may look at certain commitments from the US on the duty concessions for its labour-intensive sector in the first tranche of the proposed bilateral trade agreement (BTA). Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to $500 billion by 2030.

To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, agriculture items such as apples, tree nuts and GM (genetically modified) crops. While the import of GM crops from the US continues to remain a non-starter due to regulatory norms in India, New Delhi is open to import non-GM products like Alpha alpha hay (a kind of cattle feed).

The CNX Nifty is currently trading at 24576.40, down by 237.05 points or 0.96% after trading in a range of 24541.60 and 24737.50. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 1.49%, Adani Ports & SEZ up by 1.05%, Adani Enterprises up by 0.75%, Tata Steel up by 0.61% and JIO Financial Services up by 0.46%. On the flip side, Power Grid down by 2.87%, HCL Technologies down by 1.96%, Tech Mahindra down by 1.89%, Hindustan Unilever down by 1.82% and Nestle down by 1.74% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 411.08 points or 1.1% to 36,887.90, Taiwan Weighted lost 157.26 points or 0.72% to 21,646.65, Hang Seng declined 144.53 points or 0.61% to 23,683.25, KOSPI dropped 35.30 points or 1.34% to 2,590.28 and Straits Times fell 11.56 points or 0.3% to 3,870.99. On the other hand, Jakarta Composite gained 24.85 points or 0.35% to 7,167.31 and Shanghai Composite was up by 0.06 points to 3,387.63.
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