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Domestic indices continue to trade under pressure in late morning deals
Jun-02-2025

Domestic equity indices remained weak and were trading in red with cut of around half percent in late morning deals on account of selling by funds and retail investors. Traders were cautious as India’s manufacturing sector experienced a slight slowdown in May 2025, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) dipping to 57.6 from 58.2 in April. Weak cues from the other Asian markets also weighed on the domestic sentiments. Sentiments were weak after President Donald Trump told U.S. steelworkers late Friday that he will double tariffs on steel imports to 50%, effective from Wednesday. Further, the market sentiments also remained low due to foreign fund outflows. Exchange data shows that Foreign Institutional Investors (FII) sold shares worth nearly Rs 6,449.74 crore on Friday.

On the global front, Asian were trading in red 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. Back home, on the BSE sectoral front, traders were seen pilling up positions in Realty, FMCG, PSU, Utilities and Power, while, selling was witnessed in Metal, Consumer Durables, IT, TECK and Basic Materials.

The BSE Sensex is currently trading at 81017.87, down by 433.14 points or 0.53% after trading in a range of 80654.26 and 81285.85. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.24%, while Small cap index up by 0.39%.

The top gaining sectoral indices on the BSE were Realty up by 1.13%, FMCG up by 0.71%, PSU up by 0.33%, Utilities up by 0.25% and Power up by 0.20%, while Metal down by 1.12%, Consumer Durables down by 0.76%, IT down by 0.71%, TECK down by 0.63% and Basic Materials down by 0.61% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 1.49%, Mahindra & Mahindra up by 1.29%, Eternal up by 1.07%, Hindustan Unilever up by 0.92% and Power Grid up by 0.55%. On the flip side, Titan down by 2.03%, Tata Steel down by 1.49%, Tech Mahindra down by 1.32%, Reliance Industries down by 1.25% and Tata Motors down by 1.22% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that US President Donald Trump's announcement to double tariffs on imported steel and aluminium will impact Indian exporters, as it would hurt their profitability. On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4.

This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. Trump originally invoked this provision in 2018 to set the 25 per cent tariff on steel and 10 per cent on aluminium. He raised tariffs on aluminium to 25 per cent in February 2025. For India, GTRI said the consequences are direct.

In 2024-25, India exported $4.56 billion worth of iron, steel, and aluminium products to the US, with key categories, including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. GTRI founder Ajay Srivastava said ‘These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters.’ India has already issued a formal notice at the World Trade Organization (WTO) signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. He said ‘With Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation by increasing tariffs on certain US exports within a month.’

The CNX Nifty is currently trading at 24630.15, down by 120.55 points or 0.49% after trading in a range of 24526.15 and 24717.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 1.42%, Mahindra & Mahindra up by 1.40%, Apollo Hospital up by 1.34%, Eternal up by 1.32% and Hindustan Unilever up by 1.03%. On the flip side, Hero MotoCorp down by 2.30%, JSW Steel down by 2.18%, Bajaj Auto down by 2.11%, Titan down by 2.00% and Tata Steel down by 1.50% were the top losers.

All Asian markets were trading lower; Hang Seng declined 511.32 points or 2.24% to 22,778.45, Jakarta Composite plunged 121.64 points or 1.72% to 7,054.18, Straits Times fell 19.11 points or 0.49% to 3,875.50, KOSPI dropped 5.85 points or 0.22% to 2,691.82, Nikkei 225 slipped 498.75 points or 1.33% to 37,466.35 and Taiwan Weighted lost 364.29 points or 1.74% to 20,983.01.
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