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Indian markets continue to trade below neutral lines
Jun-03-2025

Indian equity markets have recovered from day’s lows, but continued to trade below the neutral lines in late afternoon session. Traders remained on sidelines as the trade feud between US and China continues to weigh on the market sentiments. Besides, persistent selling by Foreign Institutional Investors (FIIs) kept risk appetite subdued. FIIs were the net seller on yesterday, offloading Rs 2589.47 crore worth of shares. Further, traders remained cautious ahead of Reserve Bank's Monetary Policy Committee (MPC) meeting and awaited for further cues.

On the global front, Asian equity markets were trading mixed despite the White House flagging imminent trade talks with China and calling for best-offer proposals from trade partners to fast-track trade negotiations. European equity markets were trading lower as trade tensions persisted, and investors looked ahead to the European Central Bank's policy meeting later in the week.

Back home, oil and gas stocks came under pressure amid rising crude oil prices on concerns about supply, with Iran set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer and with production in Canada hit by wildfires.

The BSE Sensex is currently trading at 80878.42, down by 495.33 points or 0.61% after trading in a range of 80575.09 and 81774.23. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.39%, while Small cap index was up by 0.02%.

The only gaining sectoral indices on the BSE were Realty up by 1.20% and Basic Materials up by 0.34%, while Power down by 1.32%, Utilities down by 1.29%, Capital Goods down by 0.87%, Bankex down by 0.79% and Oil & Gas down by 0.71% were the top losing indices on BSE.

The only gainers on the Sensex were Mahindra & Mahindra up by 0.97% and HCL Technologies up by 0.04%. On the flip side, Adani Ports down by 2.28%, Bajaj Finserv down by 1.76%, Power Grid Corporation of India down by 1.52%, Bajaj Finance down by 1.44% and NTPC down by 1.40% were the top losers.

Meanwhile, Commerce Minister Piyush Goyal has said that India and the US desire to give preferential market access to each other's businesses and teams of both the countries are working together on the proposed bilateral trade agreement. Talking about an announcement of Trump to double tariffs on steel and aluminium to 50 per cent, the minister said that the two countries will continue to work together to resolve all these issues bilaterally. 

Talking about India's free trade pact with four-European nation bloc EFTA, Goyal said $100 billion FDI (foreign direct investment) commitment under the agreement does not include money coming into stock market through FIIs. He said ‘this is solid FDI coming into the country...This $100 billion of FDI comes with technologies... It will (also) catalyse nearly $500 billion of investments roughly. With this investment, the whole ecosystem gets created, hotels come up, infrastructure comes up, power and water is utilised. The whole ecosystem will add much more to the economy. So it's a massive investments that we are looking coming through this EFTA agreement’.

The implementation process of this pact is progressing fast and is expected to come into force before the end of this year. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.

The CNX Nifty is currently trading at 24583.95, down by 132.65 points or 0.54% after trading in a range of 24502.15 and 24845.10. There were 6 stocks advancing against 43 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Grasim Industries up by 1.40%, Shriram Finance up by 1.13%, Mahindra & Mahindra up by 1.00%, Bajaj Auto up by 0.71% and Hindalco up by 0.36%. On the flip side, Adani Ports down by 2.28%, Coal India down by 1.79%, Bajaj Finserv down by 1.72%, Power Grid Corporation of India down by 1.57% and Adani Enterprises down by 1.55% were the top losers.

Asian markets are trading mixed; Hang Seng advanced 354.52 points or 1.51% to 23,512.49, Taiwan Weighted added 124.22 points or 0.59% to 21,126.93 and Shanghai Composite strengthened 14.49 points or 0.43% to 3,361.98, while Jakarta Composite plunged 7.4 points or 0.1% to 7,057.67, Nikkei 225 slipped 23.86 points or 0.06% to 37,446.81 and Straits Times fell 4.62 points or 0.12% to 3,885.97.

European markets were trading lower; UK’s FTSE 100 decreased 24.73 points or 0.28% to 8,749.53, France’s CAC fell 26.14 points or 0.34% to 7,711.06 and Germany’s DAX lost 15.1 points or 0.06% to 23,915.57.
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