Markets trade lower with volatility in late trade

Domestic equity markets were trading lower with volatility with mid cap and small cap trading lower by almost a percent. Markets once again lost ground after hitting green terrain for brief period of trade as overall sentiments remained dampened on U.S. tariff concern. The earnings outlook continues to haunt the market participants. However, losses remain capped upto certain extent after RBI announced that it will pour in 2.50 trillion rupees ($28.85 billion) through an overnight variable rate repo auction but wasn’t enough to slow down FII’s funds outflow.

On the global front, Asian equity markets trading in green as the traders reacted to US Fed Chair Jerome Powell's cautious remarks on interest-rate cuts and remained cautious ahead of U.S. CPI data for additional clues on future monetary policy, while the European equity markets trading higher as the European Union pledged countermeasures against Trump's tariffs on metals. 

The BSE Sensex is currently trading at 75957.61, down by 335.99 points or 0.44% after trading in a range of 75388.39 and 76459.72. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index down by 1.00%, while Small cap index down by 1.19%.

The lone gaining sectoral index on the BSE was Metal up by 0.20% , while Realty down by 2.37%, Power down by 1.29%, Energy down by 1.23%, Auto down by 1.15%, Oil & Gas down by 1.11% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.24%, Ultratech Cement up by 1.59%, Tata Steel up by 1.54%, Larsen & Toubro up by 1.28% and Bharti Airtel up by 0.71%. On the flip side, Mahindra & Mahindra down by 3.47%, ITC down by 2.26%, Power Grid Corporation of India down by 2.01%, Indusind Bank down by 1.99% and Reliance Industries down by 1.77% were the top losers.

Meanwhile, highlighting the measures being taken to facilitate Foreign Direct Investment (FDI) flows in the country, Union Minister of State for Commerce and Industry, Jitin Prasada has said that the Government has put in place a policy framework for Foreign Direct Investment that is transparent, predictable, and easily comprehensible. Besides, he said to promote FDI, the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. More than 90% of the FDI inflow is received under the automatic route.

Minister further noted that India has embarked on a series of reforms aimed at liberalizing its FDI policies, with the goal of stimulating economic growth and encouraging foreign capital inflows. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom and Space. FDI in the Defence sector is allowed up to 74% through Automatic Route (from earlier 49%) for companies seeking new industrial licenses. Further, 100% FDI in the Telecom Sector is allowed under the Automatic Route. FDI sectoral cap in the insurance sector has been revised from 49% to 74% under the automatic route. The Union Budget 2025 also announced the further increase of FDI sectoral cap for the insurance sector from 74% to 100%. This enhanced limit will be available for those companies, which invest the entire premium in India.

Prasada further stated that to further strengthen a seamless business regulatory framework across the country and nudge states to promote healthy competition to attract investment including FDI, various initiatives are being undertaken. The Government of India released Business Reforms Action Plan (BRAP) 2024 rankings and Logistics Ease Across Different States (LEADS) 2024 report to communicate to potential investors examples of a positive business ecosystem as well as logistics performance undertaken by various States and UTs.

The CNX Nifty is currently trading at 22976.15, down by 95.65 points or 0.41% after trading in a range of 22798.35 and 23144.70. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.57%, Bajaj Finserv up by 2.31%, HDFC Life Insurance up by 1.88%, Ultratech Cement up by 1.69% and Tata Steel up by 1.54%. On the flip side, Mahindra & Mahindra down by 3.51%, Bharat Electronics down by 2.68%, ITC down by 2.24%, Power Grid Corp down by 2.14% and Hero MotoCorp down by 2.01% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 507.26 points or 2.33% to 21,802.12, Jakarta Composite gained 75.09 points or 1.14% to 6,607.08, KOSPI increased 9.34 points or 0.37% to 2,548.39 , Nikkei 225 surged 162.53 points or 0.42% to 38,963.70, Straits Times rose 0.69 points or 0.02% to 3,861.45 and Shanghai Composite strengthened 28.33 points or 0.85% to 3,346.39 , while Taiwan Weighted lost 94.3 points or 0.4% to 23,289.75.

European markets were trading higher; UK’s FTSE 100 increased 10.44 points or 0.12% to 8,787.83, France’s CAC rose 30.16 points or 0.38% to 8,059.06 and Germany’s DAX gained 77.66 points or 0.35% to 22,115.49.