Domestic equity indices remain under pressure in late morning deals

Domestic equity indices remained under pressure in late morning deals as market participants indulged in reducing their positions. Meanwhile, the broader markets were facing the heat of selling; the BSE mid-cap index declined by 1.02 per cent and the small-cap index was down 1.53 per cent. Weak cues from the global markets weighed on the domestic sentiments. Traders were cautious after U.S. President Donald Trump levied tariffs on Canada, Mexico and China over the weekend. On Saturday, Trump signed an order implementing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China. Most of the sectoral indices on BSE were trading in red, with only exception of Consumer Durables counter. Stocks from Capital Goods, Power, Industrials, PSU and Utilities counters were the prominent losers.  

On the global front, Asian markets were trading in red following weak cues from the US markets on Friday. Back home, in the stock specific development, Sun Pharmaceutical rose as it reported 14% surge in Q3 consolidated net profit.

The BSE Sensex is currently trading at 76957.06, down by 548.90 points or 0.71% after trading in a range of 76756.09 and 77138.19. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.02%, while Small cap index down by 1.53%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.97%, while Capital Goods down by 4.27%, Power down by 3.85%, Industrials down by 3.72%, PSU down by 3.30% and Utilities down by 3.30% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.48%, Bajaj Finance up by 2.47%, Bharti Airtel up by 1.67%, Maruti Suzuki up by 1.53% and Mahindra & Mahindra up by 1.50%. On the flip side, Larsen & Toubro down by 4.06%, NTPC down by 3.62%, Power Grid down by 3.10%, Hindustan Unilever down by 2.24% and Tata Steel down by 2.22% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) said the customs duty reduction announced in the Budget on products such as motorcycles and synthetic flavouring essences would benefit American exports. It said that despite the repeated criticism of India as the biggest tariff abuser and tariff king by the Trump-administration, the country's Budget has introduced significant tariff reductions on multiple products, many of which benefit the US exports. 

GTRI said with key tariff cuts on technology, automobiles, industrial inputs, and waste imports, India appears to be taking steps toward facilitating trade even as the global trade environment remains tense. It said whether these reductions will alter Washington's view of India's trade practices or become a point of contention in the US election cycle remains to be seen. Among the key tariff reductions, India lowered the duty on fish hydrolysate for the manufacturing of aquatic feed from 15 per cent to 5 per cent, a move that directly impacts US exports, which amounted to $35 million in 2023-24. 

For the automobile sector, it said India has reduced tariffs on motorcycles based on engine capacity. For motorcycles with an engine capacity below 1,600cc, the tariff has been cut from 50 per cent to 40 per cent, while for motorcycles above 1,600cc, the tariff has been slashed from 50 per cent to 30 per cent. The US motorcycle exports to India stood at $3 million in FY24, and this tariff cut could help expand market access for American manufacturers. Similarly, it said, tariff cut on ethernet switches (carrier-grade) under the others category from 20 per cent to 10 per cent would help American exporters. India has also lowered the duties on synthetic flavouring essences from 100 per cent to 20 per cent, a category in which Washington exports stood at $21 million in FY24.  

The CNX Nifty is currently trading at 23290.50, down by 191.65 points or 0.82% after trading in a range of 23222.00 and 23345.15. There were 15 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.48%, Bajaj Finserv up by 2.45%, Eicher Motors up by 2.40%, Bharti Airtel up by 1.79% and Mahindra & Mahindra up by 1.73%. On the flip side, Bharat Electronics down by 4.95%, Larsen & Toubro down by 4.07%, NTPC down by 3.65%, ONGC down by 3.63% and Coal India down by 3.46% were the top losers.

All Asian markets were trading lower; Hang Seng declined 172.21 points or 0.85% to 20,052.90, Jakarta Composite plunged 161.43 points or 2.32% to 6,947.77, Straits Times fell 27.53 points or 0.71% to 3,828.29, KOSPI dropped 63.94 points or 2.54% to 2,453.43, Nikkei 225 slipped 1044.47 points or 2.64% to 38,528.02 and Taiwan Weighted lost 830.7 points or 3.66% to 22,694.71.