Markets trade slightly in red in late morning deals

Indian equity markets were trading slightly in red in late morning deals as investors awaited clarity on upcoming U.S. tariffs. Selling in NTPC, Eternal, Tech Mahindra, Sun Pharma and Bajaj Finance companies' stocks dragged the markets to trade below neutral lines. Sentiments were weak as S&P Global Ratings cut India’s GDP growth projections to 6.5 per cent for the next fiscal. On the BSE Sectoral front, traders were seen pilling up positions in Capital Goods, Auto, Power, Industrials and Basic Materials, while selling was witnessed in Healthcare, Bankex, IT, FMCG and PSU.

On the global front, Asian markets were trading mostly in green, tracking US markets gains on expectations that U.S. President Donald Trump’s tariffs could be softer than expected earlier. Back home, in the stock specific development, Advait Energy Transitions rose after the company emerged as a successful bidder for PACKAGE OPGW-04 from Power Grid.           

The BSE Sensex is currently trading at 77906.47, down by 110.72 points or 0.14% after trading in a range of 77784.23 and 78167.87. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.24%, while Small cap index down by 0.37%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.71%, Auto up by 0.59%, Power up by 0.51%, Industrials up by 0.43% and Basic Materials up by 0.39%, while Healthcare down by 0.78%, Bankex down by 0.24%, IT down by 0.16%, FMCG down by 0.10% and PSU down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 3.65%, Mahindra & Mahindra up by 1.49%, Power Grid up by 1.01%, Adani Ports up by 1.00% and HCL Technologies up by 0.87%. On the flip side, NTPC down by 2.25%, Eternal down by 2.55%, Tech Mahindra down by 1.92%, Sun Pharma down by 1.05%, SBI Life down by 1.20% and Bajaj Finance down by 0.88% were the top losers.

Meanwhile, S&P Global Ratings in its Economic Outlook for Asia-Pacific (APAC) has cut India's GDP growth projections for the Fiscal year 2025-26 (FY26) to 6.5 per cent as it expects that economies in the APAC region will feel the strain of rising US tariffs and pushback on globalization. It said despite these external strains S&P expects domestic demand momentum to remain solid in most emerging market economies. It noted that it has kept the forecast for FY26 same as the outcome for the previous fiscal year, but less than their earlier forecast of 6.7 per cent. The forecast assumes that the upcoming monsoon season will be normal and that commodity, especially crude, prices will be soft. 

S&P indicated that the cooling food inflation, tax benefits announced in the country's budget for the upcoming fiscal year and lower borrowing costs will support discretionary consumption in the country. The rating agency expects central banks in the Asia Pacific region to continue cutting benchmark interest rates through this year. It has forecasted that the Reserve Bank of India (RBI) will cut interest rates by another 75 bp-100 bp in the current cycle as easing food inflation and lower crude prices will move headline inflation closer to the central bank target of 4 per cent in the fiscal year ending March 2026 and fiscal policy is contained.

On Asia-Pacific front, S&P has indicated that the Asia-Pacific will feel the strain of rising US tariffs. It added that till now the new US government has imposed an additional 20 per cent tariff on imports from China; 25 per cent levies on some imports from Canada and Mexico, with levies on other products postponed for a month; and a global 25 per cent tariff on steel and aluminium. Besides, the US has also announced an intention to impose ‘reciprocal tariffs’ and tariffs on cars, semiconductors and pharmaceuticals.

According to the rating agency, the import tariffs will lower growth in the US and abroad, and raise US inflation. Further, it also expects the US Federal Reserve to cut its policy rate by 25 basis points (bp) only one time in 2025, in the end, and make three such cuts in 2026 as the heightened uncertainty about US economic policy and its impact, notably around tariffs, is weighing on investment in the US and elsewhere.

The CNX Nifty is currently trading at 23662.45, down by 6.20 points or 0.03% after trading in a range of 23614.70 and 23736.50. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.57%, Trent up by 1.83%, Mahindra & Mahindra up by 1.59%, Adani Enterprises up by 1.40% and Adani Ports up by 1.09%. On the flip side, NTPC down by 2.13%, Tech Mahindra down by 1.80%, Cipla down by 1.23%, SBI Life down by 1.20% and Tata Consumer down by 1.14% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 22.66 points or 0.1% to 23,366.91, Jakarta Composite gained 209.18 points or 3.25% to 6,444.80, Straits Times rose 11.08 points or 0.28% to 3,965.61, KOSPI increased 27.75 points or 1.06% to 2,643.56 and Nikkei 225 surged 295.72 points or 0.78% to 38,076.26. However, Shanghai Composite weakened 2.59 points or 0.08% to 3,367.39 and Taiwan Weighted lost 12.9 points or 0.06% to 22,260.29.