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Sensex, Nifty trade under pressure amid concerns over global trade
Jun-02-2025

Indian equity benchmarks made gap-down opening on Monday following weakness in Asian counterparts, amid rising concerns about the uncertainty surrounding US President Donald Trump's tariff plans. Trump accused China of violating the trade agreement reached last month. Trump has also announced that import tariffs on steel and aluminum will double to 50 percent starting June 4, in what he called a move to protect domestic industry. Sensex and Nifty are trading lower with notable losses in early deals lead by selling in IT and TECK stocks. Some cautiousness came as think tank GTRI said US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, as it would hurt their profitability. Also, the government data showed that India’s real GDP growth for the January-March quarter of financial year 2024-25 stood at 7.4%. The growth in Q4FY25 was lower than the 8.4% expansion in the year-ago quarter.

Meanwhile, Commerce and Industry Minister Piyush Goyal said that negotiations for the proposed comprehensive free trade agreement (FTA) between India and the European Union (EU) are progressing at a rapid pace and the deal could be concluded before the year end. In stock specific development, Apollo Hospitals rallied on reports that it plans to sell its maternity and infant care unit.

The BSE Sensex is currently trading at 80867.55, down by 583.46 points or 0.72% after trading in a range of 80654.26 and 81285.85. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were Realty up by 0.43%, FMCG up by 0.41%, PSU up by 0.37%, Power up by 0.31% and Utilities up by 0.19%, while, IT down by 1.06%, TECK down by 0.90%, Metal down by 0.80%, Basic Materials down by 0.50% and Auto down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 1.09%, Bharat Electronics up by 0.86%, Hindustan Unilever up by 0.76%, SBI up by 0.60% and Mahindra & Mahindra up by 0.40%. On the flip side, Tech Mahindra down by 1.62%, HDFC Bank down by 1.48%, Reliance Industries down by 1.45%, HCL Technologies down by 1.45% and Titan down by 1.32% were the top losers.

Meanwhile, with support of growth in manufacturing, services and farm sectors, Finance Minister Nirmala Sitharaman has said India is sustaining its Gross Domestic Product (GDP) growth momentum as the fastest-growing economy for the fourth year in a row. She said India’s manufacturing activity has been ‘good’ during the January-March period, which has helped clock a GDP growth of 7.4 per cent during the quarter and 6.5 per cent for the full 2024-25 fiscal. She noted that ‘India is sustaining the growth and it is the fastest growing economy now for the fourth year continuously thanks to the work of small, medium, and large industries; industries which are coming in and making sure our manufacturing capacity, our service capacity are all intact. Agriculture has also sustained us even during Covid and subsequently’.

The 6.5 per cent GDP growth for FY’25 comes on a high base of FY’24 when the economy grew at 9.2 per cent. The 7.4 per cent growth in the March quarter was also on a high base of 8.4 per cent in FY’24. She said during the January-March quarter there were views that industry was not investing enough, capacities were not increasing and questioned its impact on the economy. She added ‘I’m glad, India’s industry.. the manufacturing activity has all been good during Q4 of 2024-25 and there was a real GDP growth of 7.4 per cent in Q4 alone. As a result, for the entire financial year of 2024-25 (April-March), the real GDP growth was 6.5 per cent’.

Sitharaman said every year the Government is working to remove regulatory difficulties and bring in soft-touch regulation, which will allow people to do business without suspicion. She said she is open to receiving suggestions for removing hurdles to business in easing regulatory hurdles. She said ‘We are at that part of India’s history where it just requires all of us to have confidence in our country’s abilities and belief that we can definitely deliver that goal.. how long more are we going to say we are a developing country’. She said in achieving the goal of becoming a developed nation by 2047, the country needs to come out of the evil of petty corruption.

The CNX Nifty is currently trading at 24571.60, down by 179.10 points or 0.72% after trading in a range of 24526.15 and 24717.55. There were 16 stocks advancing against 33 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Apollo Hospital up by 2.44%, Adani Ports & SEZ up by 0.99%, Hindustan Unilever up by 0.88%, Bharat Electronics up by 0.61% and SBI Life Insurance up by 0.52%. On the flip side, Hero MotoCorp down by 2.17%, Bajaj Auto down by 1.78%, HCL Technologies down by 1.61%, Tech Mahindra down by 1.59% and HDFC Bank down by 1.58% were the top losers.

Asian markets are trading lower; Nikkei 225 slipped 515.63 points or 1.36% to 37,449.47, Hang Seng declined 511.32 points or 2.24% to 22,778.45, Taiwan Weighted lost 364.16 points or 1.71% to 20,983.14, Jakarta Composite plunged 119.24 points or 1.66% to 7,056.58, Straits Times fell 18.96 points or 0.49% to 3,875.65 and KOSPI dropped 8.84 points or 0.33% to 2,688.83.
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