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EQUITY
Post Session: Quick Review
May-22-2025

Indian equity benchmarks witnessed sluggish trading session on Thursday, with both the Nifty and Sensex closing into red with notable losses, amid weak global cues. Markets made a negative start and remained subdued throughout the session, as a deteriorating U.S. fiscal outlook and poor response to the 20-year bond auction led to a spike in bond yields. Selling was seen across sectors, with auto and consumer goods stocks leading the decline. However, markets showed some recovery in the dyeing hours of trade amid weekly expiry of F&O.

Some of the important factors in today’s trade:

Private sector growth gains momentum in May: Traders paid no heed towards the HSBC Flash India PMI report that has showed private sector growth in India moved up a gear during May, boosted by acceleration in the service economy. The HSBC Flash India Composite Output Index surged to 61.2 in May from a final reading of 59.7 in April. The HSBC Flash India Manufacturing PMI index also rose to 58.3 in May from 58.2 in April.

Fitch Ratings raises India’s average annual growth potential till 2028 to 6.4%: Traders overlooked report that Fitch Ratings has raised India’s average annual growth potential till 2028 to 6.4 per cent, from 6.2 per cent estimated in November 2023. 

India, US likely to agree on interim trade agreement before July 8: Traders took note of 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.

Global front: European markets were trading in red on Thursday, as investors reacted to a U.S. Treasury sell-off, mixed regional data and some disappointing earnings. Asian markets ended mostly in red on Wednesday 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 BSE Sensex ended at 80951.99, down by 644.64 points or 0.79% after trading in a range of 80489.92 and 81323.24. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was down by 0.33%, while Small cap index up by 0.17%. (Provisional)

The only gaining sectoral index on the BSE was Telecom up by 0.31%, while Energy down by 1.25%, FMCG down by 1.25%, Oil & Gas down by 1.13%, IT down by 1.09% and Consumer Durables down by 1.07% were the top losing indices on BSE. (Provisional)

The few gainers on the Sensex were Indusind Bank up by 1.82%, Bharti Airtel up by 0.57% and Ultratech Cement up by 0.32%. On the flip side, Mahindra & Mahindra down by 2.46%, Tech Mahindra down by 1.76%, Bajaj Finserv down by 1.70%, Power Grid Corp down by 1.65% and ITC down by 1.54% were the top losers. (Provisional)

Meanwhile, the Fitch Ratings while updating the five-year-ahead potential GDP projections has raised India’s average annual growth potential till 2028 to 6.4 per cent, from 6.2 per cent estimated in November 2023. The revision comes on the back of a sharper rise in India's labour force participation rate in recent years. While the agency expects this growth to continue, it may happen at a slower pace going forward.

It noted that ‘The Indian economy bounced back more strongly than we expected at the time of the 2023 report, suggesting a less adverse ‘scarring’ impact from the pandemic shock’. It has slightly lowered its medium-term potential GDP projections over the next five years for the 10 emerging market economies covered in the Global Economic Outlook (GEO).

It said ‘Our new projection sees growth at 3.9 per cent on a GDP weighted basis, down from 4 per cent in our previous assessment published in November 2023’, and added that ‘Our unweighted average EM10 potential growth projection is 3.1 per cent, just higher than the 2023 report’.

The CNX Nifty ended at 24609.70, down by 203.75 points or 0.82% after trading in a range of 24462.40 and 24737.50. There were 11 stocks advancing against 38 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top gainers on Nifty were Indusind Bank up by 1.81%, JSW Steel up by 0.71%, Bajaj Auto up by 0.62%, Bharti Airtel up by 0.47% and Hero MotoCorp up by 0.21%. On the flip side, Mahindra & Mahindra down by 2.73%, ONGC down by 2.65%, Hindalco down by 2.03%, Wipro down by 1.94% and Trent down by 1.79% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 186.32 points or 0.78% to 23,936.08, UK’s FTSE 100 decreased 60.88 points or 0.7% to 8,725.58 and France’s CAC fell 78.02 points or 1% to 7,832.47.

Asian markets settled mostly down on Thursday tracking Wall Streets’ overnight fall after US Treasury yields hit their highest in 18 months on concerns that a new budget proposal could swell the country's federal deficit. US President Donald Trump is championing an extension of his 2017 tax cuts, which analysts warn could add trillions to the federal government's already massive $36.2 trillion debt pile. The plan has sparked fears of an even wider deficit, especially as interest payments continue to soar. Former US Treasury Secretary Steven Mnuchin said he is more alarmed by the country’s growing budget deficit than the trade deficit, and urged Washington to prioritize fiscal repair. Japanese shares fell as the yen hit a new two-week high against the US dollar, despite data showing Japan's core machinery orders rose 13% in March from the previous month. Seoul shares declined after reports suggested that the United States had demanded Seoul to come up with strong measures to boost the won.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,380.19

-7.38

-0.22

Hang Seng

23,544.31

-283.47

-1.20

Jakarta Composite

7,166.98

24.52

0.34

KLSE Composite

1,527.02

-17.78

-1.15

Nikkei 225

36,985.87

-313.11

-0.85

Straits Times

3,880.09

-2.46

-0.06

KOSPI Composite

2,593.67

-31.91

-1.23

Taiwan Weighted

21,670.96

-132.95

-0.61
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