HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges end lower on Friday
May-30-2025

Indian equity benchmarks ended lower on Friday, following losses in Metal, Basic Materials and Utilities shares and sluggish trends in Asian markets due to trade uncertainty after a US appeals court temporarily reinstated reciprocal tariffs. 

Some of the important factors in today’s trade:

Steady inflow of foreign funds: Foreign institutional investors (FIIs) purchased equities worth Rs 884.03 crore on a net basis on Thursday, according to exchange data. 

Tariff war creates opportunity for India in some of sectors: Chief Economic Adviser V Anantha Nageswaran has said ongoing tariff war triggered by reciprocal tariff by the Trump Administration provides an opportunity for India in some sectors. He said India actually has a few silver linings which include low energy prices at the moment.

India to remain fastest-growing economy for next 30 years: Highlighting India as an attractive investment destination, Union Minister for Commerce & Industry Piyush Goyal has said that India to remain fastest-growing large economy in the world for next 30 years. 

Jewellery stocks in watch: Credit rating agency ICRA has anticipated that domestic gold jewellery consumption by value to continue to exhibit double-digit growth in FY26, with an estimated increase of 12-14%, notwithstanding a projected decline in volumes.

Global front: European markets were trading higher with investors picking up stocks amid hopes the European Central Bank will lower interest rates at its ensuing meeting. Asian markets ended lower on Friday due to uncertainty surrounding a court battle about U.S. President Donald Trump's tariffs and rising concerns about U.S. economic stability.

Finally, the BSE Sensex fell 182.01 points or 0.22% to 81,451.01 and the CNX Nifty was down by 82.90 points or 0.33% to 24,750.70.     

The BSE Sensex touched high and low of 81,698.21 and 81,286.45 respectively. There were 6 stocks advancing against 24 stocks declining on the index. 

The broader indices ended mixed; the BSE Mid cap index fell 0.39%, while Small cap index was up by 0.17%.

The few gaining sectoral indices on the BSE were Capital Goods up by 0.62%, Industrials up by 0.22% and Bankex up by 0.21%, while Metal down by 1.68%, Basic Materials down by 1.14%, Utilities down by 1.09%, Oil & Gas down by 1.06% and IT down by 1.05% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 4.58%, SBI up by 1.89%, HDFC Bank up by 0.81%, Larsen & Toubro up by 0.64% and Reliance Industries up by 0.24%. On the flip side, Tech Mahindra down by 1.73%, HCL Technologies down by 1.64%, Asian Paints down by 1.62%, NTPC down by 1.49% and Infosys down by 1.43% were the top losers.

Meanwhile, expressing an optimism over India’s growth prospects, NITI Aayog Vice-Chairman Suman Bery has said that the size of the Indian economy in the purchasing power parity (PPP) term is already $15 trillion, which is more than half the size of the US economy. The purchasing power parity (PPP) is the amount of currency units required to purchase a basket of goods and services that can be purchased with one unit of the reference economy’s currency. 

He added ‘There has been a lot in the newspapers about our being the fourth largest economy. Those are all measured at market prices, but the real way of measuring productivity is purchasing power parity’. He also said ‘And while we are $4 trillion GDP at market prices, at PPP term, we are $15 trillion economy’. He said that ‘economists tend to measure labour productivity at purchasing power parity as PPP measures the real size of the economy of countries against the size of the US economy. And so while we (the size of India economy in PPP term) are at $15 trillion, the United States is at $29 trillion. So we are roughly half the world size of the US economy.’

He said India needs to diversify its sources of supply, so the country would not have to depend on a particular supplier. He also suggested that India should leverage global knowledge and innovate locally, while reforming markets and building skills. He emphasised that the states should utilise opportunities of Free Trade Agreements (FTAs) which were signed by the Union government. He said competitiveness should not only be restricted to manufacturing but should extend to services as well. He said India’s labour productivity is the lowest among the G20 nations and a sustained rise in productivity of labour is crucial for India to leverage its demographic dividend.

Bery pointed out that ‘India has maintained an average growth rate of 6.5 per cent for the 30 years since 1991 reforms to the COVID period in 2021, suggesting that the roots of resilience in India are as much in our institutions as they are in our policies. Deep institutional sources of resilience are in place, but we mustn’t be complacent, because we need to up our game for all kinds of reasons.’ According to Bery, industrialisation is another challenge facing the country and policy lessons could be drawn from countries such as China, Japan and South Korea even though each country must work out its own path and productivity trajectory.

The CNX Nifty traded in a range of 24,863.95 and 24,717.40. There were 7 stocks advancing against 42 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Eternal up by 4.35%, SBI up by 1.87%, HDFC Bank up by 0.90%, Larsen & Toubro up by 0.54% and Bajaj Finserv up by 0.32%. On the flip side, Bajaj Auto down by 3.01%, Hindalco down by 2.54%, Shriram Finance down by 1.98%, HCL Technologies down by 1.69% and Tech Mahindra down by 1.63% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 65.13 points or 0.74% to 8,781.58, France’s CAC rose 22 points or 0.28% to 7,801.72 and Germany’s DAX gained 208.38 points or 0.86% to 24,141.61.

Asian markets ended lower on Friday due to uncertainty surrounding a court battle about the US President Donald Trump's tariffs and rising concerns about US economic stability, while investors were awaiting key US inflation reading that may provide further cues into the Federal Reserve's policy trajectory. Seoul shares declined sharply on profit taking and after the release of soft industrial production, retail sales and facilities investment figures for April. Chinese shares dipped, with Apple suppliers leading losses after US Treasury Secretary Scott Bessent said trade negotiations with China were ‘a bit stalled’ and suggested President Donald Trump and his Chinese counterpart Xi Jinping could get involved. Hong Kong shares fell as the suspension of US chip software exports to China, intensifying trade and tech-sector worries. Japanese shares declined as the yen extended gains after the release of hot Tokyo inflation data, which boosted the odds of a rate hike in June.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,347.49

-15.96

-0.48

Hang Seng

23,289.77

-283.61

-1.22

Jakarta Composite

--

--

--

KLSE Composite

1,508.35

-10.63

-0.70

Nikkei 225

37,965.10

-467.88

-1.23

Straits Times

3,894.61

-22.23

-0.57

KOSPI Composite

2,697.67

-22.97

-0.85

Taiwan Weighted

--

--

--
  RELATED NEWS >>
Most Viewed >>
May 22 , 2025
27 equity mutual funds offer over 25% CAGR in
May 22 , 2025
How are investors being lured into stock marke
May 22 , 2025
Morgan Stanley sees Sensex hitting 89,000 by J
May 22 , 2025
Retail MF investors' patience is helping provi
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.