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Bourses continue downward trade in early afternoon session
May-22-2025

Indian markets continued their downward trade in early afternoon session with growing concerns over the US economy. Traders were worried as US House of Representatives Rules Committee voted to advance President Donald Trump's sweeping tax cut, setting the stage for a vote on the House floor. Sector wise, airline industry stocks remained in limelight as the Directorate General of Civil Aviation (DGCA) in its latest data has showed that Indian airlines flew 143.16 lakh passengers on domestic routes in April 2025, 8.45 per cent more as compared to 132 lakh in the same period a year ago, amid rising air traffic demand. On the global front, Asian markets were trading mostly in red as Japan's private sector activity fell back into contraction territory in May due to a steeper fall in manufacturing output alongside a weaker growth in the services sector. The au Jibun Bank composite output index dropped to 49.8 in May from 51.2 in the previous month. A score below 50.0 indicates contraction.

The BSE Sensex is currently trading at 80748.58, down by 848.05 points or 1.04% after trading in a range of 80710.22 and 81323.24. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.41%, while Small cap index was up by 0.14%.

The only gaining sectoral index on the BSE was Telecom up by 0.34%, while FMCG down by 1.33%, Auto down by 1.26%, IT down by 1.25%, Energy down by 1.02% and Consumer Durables was down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.05%, Bharti Airtel up by 0.60% and Indusind Bank up by 0.08%. On the flip side, Mahindra & Mahindra down by 2.61%, Power Grid down by 2.33%, Tech Mahindra down by 1.96%, ITC down by 1.87% and Bajaj Finserv down by 1.57% were the top losers.

Meanwhile, negotiations for a proposed trade pact between India and the 27-nation European Union are progressing at a faster pace and both the sides are looking at concluding the talks for an early harvest trade agreement by July this year. The early harvest or an interim trade agreement would include issues such as intellectual property rights (IPRs), government procurement, tariff, and non-tariff barriers.

The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump. India has followed the practice of negotiating trade pacts in two phases with Australia. The early harvest pact would lead to a full-fledged free trade agreement. Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime. Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.     

In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years. The negotiations stalled in 2013 due to differences over the level of opening up of the markets. On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.

The CNX Nifty is currently trading at 24557.30, down by 256.15 points or 1.03% 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 Tata Steel up by 1.08%, Bharti Airtel up by 0.56%, JIO Financial Serv. up by 0.53%, Bharat Electronics up by 0.29% and Indusind Bank up by 0.22%. On the flip side, Mahindra & Mahindra down by 2.88%, Power Grid down by 2.41%, Tech Mahindra down by 2.06%, ITC down by 1.96% and Wipro down by 1.83% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 313.11 points or 0.85% to 36,985.87, Hang Seng declined 271.47 points or 1.14% to 23,556.31, Taiwan Weighted lost 132.95 points or 0.61% to 21,670.96, KOSPI dropped 31.91 points or 1.23% to 2,593.67, Straits Times fell 10.46 points or 0.27% to 3,872.09 and Shanghai Composite was down by 6.34 points or 0.19% to 3,381.23. On the flip side, Jakarta Composite was up by 36.84 points or 0.52% to 7,179.30.
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