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Key gauges trade choppy amid US-China trade tensions
Jun-02-2025

Key gauges traded choppy below neutral lines in late afternoon session as the lingering uncertainty regarding US tariffs continue to weigh on investors' sentiment. US president Trump has doubled the current tariff rate on steel and aluminum imports to 50% starting from June 4. Besides, traders took a cautious stance after India’s manufacturing activity slowed down slightly in the month of May 2025 with HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to three-month low of 57.6 from 58.2 in April 2025 amid softer growth of new orders and production. 

On the global front, Asian equity markets were trading mostly in red after China accused U.S. of violating Geneva trade truce over chip curbs and the Trump administration announced it will double the current tariff rate on steel and aluminum imports from 25 percent to 50 percent. European equity markets were trading mostly in red after Ukraine launched a large-scale drone attack on Russia over the weekend, retaliating against Russian aggression seen last week but further undermining upcoming peace talks. Back home, trade feud between US-China has weighed on Metal and IT stocks, dragging BSE Matel index and BSE IT index down by 0.72% and 0.73%, respectively.

The BSE Sensex is currently trading at 81143.91, down by 307.10 points or 0.38% after trading in a range of 80654.26 and 81403.88. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.46%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Realty up by 2.27%, FMCG up by 0.46%, PSU up by 0.42%, Utilities up by 0.36% and Power up by 0.22%, while IT down by 0.73%, Metal down by 0.72%, TECK down by 0.65%, Consumer Durables down by 0.56% and Oil & Gas down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 2.47%, Mahindra & Mahindra up by 1.77%, Eternal up by 0.96%, Bharat Electronics up by 0.74% and Power Grid Corporation of India up by 0.71%. On the flip side, Tech Mahindra down by 1.90%, Tata Steel down by 1.40%, Tata Motors down by 1.04%, Titan Company down by 1.02% and HDFC Bank down by 0.90% were the top losers.

Meanwhile, India’s manufacturing activity slowed down slightly in the month of May 2025 with HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to three-month low of 57.6 from 58.2 in April 2025 amid softer growth of new orders and production. Though, the headline figure was nevertheless well above both the neutral mark of 50.0 and its long-run average of 54.1. 

Ongoing increases in new orders continued to support output, but rates of expansion receded to their weakest in three months. Monitored companies linked growth to healthy domestic and international demand, alongside successful marketing initiatives. The upturn was curbed by cost pressures, fierce competition and the India-Pakistan conflict.

Companies operating in India's manufacturing economy faced another monthly increase in purchasing prices. According to them, aluminium, cement, iron, leather, rubber and sand were the main sources of cost pressures. The overall rate of inflation was solid and the highest since November 2024. In addition to greater material costs, manufacturers also reported greater outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May.

However, new export orders rose at one of the strongest rates recorded in three years, with favourable demand from Asia, Europe, the Middle East and the US. Positive sales developments encouraged companies to purchase additional inputs for use in production processes. The pace of expansion was sharp and eased only marginally since April. Sustained job creation enabled manufacturers to stay on top of their workloads in May. Outstanding business volumes was unchanged, ending a six-month period of accumulation.

The CNX Nifty is currently trading at 24664.45, down by 86.25 points or 0.35% after trading in a range of 24526.15 and 24739.75. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 2.47%, Mahindra & Mahindra up by 1.73%, Tata Consumer Products up by 1.15%, Eternal up by 1.13% and Power Grid Corporation of India up by 0.79%. On the flip side, Hero MotoCorp down by 1.97%, Tech Mahindra down by 1.94%, JSW Steel down by 1.60%, HDFC Life Insurance down by 1.42% and Tata Steel down by 1.38% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 131.8 points or 0.57% to 23,157.97, Jakarta Composite plunged 128.41 points or 1.79% to 7,047.41, Nikkei 225 slipped 494.43 points or 1.32% to 37,470.67, Taiwan Weighted lost 344.59 points or 1.64% to 21,002.71 and Straits Times fell 2.77 points or 0.07% to 3,891.84, while KOSPI increased 1.30 points or 0.05% to 2,698.97.

European markets were trading mostly in red; France’s CAC fell 29.74 points or 0.39% to 7,722.15 and Germany’s DAX lost 75.87 points or 0.32% to 23,921.61, while UK’s FTSE 100 increased 13.57 points or 0.15% to 8,785.95.
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