Domestic indices remain under pressure in late morning deals

Domestic equity indices remained under pressure in late morning deals on account selling by funds and retail investors. Meanwhile, the broader markets were also facing the heat of selling; the BSE mid-cap index declined by 2.56 per cent and the small-cap index was down 2.65 per cent. Weak cues from the global markets weighed on the domestic sentiments.  Sentiments remained weak after President Donald Trump unveiled sweeping reciprocal tariffs, which raised concerns about the possibility of a global trade war and sparked a major flight to safety away from risk assets. Most of the sectoral indices on BSE were trading in red, with only exception of banking counter. Stocks from Metal, Energy, Oil & Gas, Healthcare and IT counters were the prominent losers.

On the global front, Asian markets were trading in red after U.S. President Donald Trump’s tariffs rattled global markets. Back home, in the stock specific development, HDFC Bank surged on positive Q4 update.  

The BSE Sensex is currently trading at 75599.04, down by 696.32 points or 0.91% after trading in a range of 75435.75 and 76258.12. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.56%, while Small cap index down by 2.65%.

The only gaining sectoral indices on the BSE was Bankex up by 0.20%, while Metal down by 4.96%, Energy down by 3.28%, Oil & Gas down by 3.26%, Healthcare down by 3.23%, IT down by 3.22% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.03%, HDFC Bank up by 1.94%, Bharti Airtel up by 1.33%, Nestle up by 0.99% and Power Grid up by 0.22%. On the flip side, Tata Steel down by 5.56%, Tata Motors down by 5.15%, Larsen & Toubro down by 4.02%, Sun Pharma down by 3.95% and Reliance Industries down by 3.84% were the top losers.

Meanwhile, ICRA has stated that the US administration’s latest tariff measures will not have any material impact on India's passenger vehicle exports due to meagre volumes of such shipments. As part of reciprocal tariffs on about 60 countries to counter higher duties on American products imposed globally, US President Donald Trump had announced 27 per cent reciprocal tariffs on India, saying India imposes high import duties on American goods. Although the automobile sector is not covered in this order since it is already subject to Section 232 tariffs at 25 per cent, announced by the Trump administration on March 26, 2025. Meanwhile, the rating agency has suggested that the recent tariff imposition is unlikely to have any material impact on automotive original equipment makers as the passenger vehicle exports from India to the USA represent less than 1 per cent of the overall PV exports.

However, the ICRA has indicated that the scenario is different for auto components as the key auto parts, including engines, transmissions, powertrain components and electrical parts face increased tariffs in the US subsequent to 25% tariff imposition on all aluminium and steel imports. It added that the effective date is pending but is expected to be not later than May 3 this year. As per the rating agency, the Indian auto components exports accounted for around 29 per cent of the industry's total revenues in FY24, of which around 27 per cent was to the US.

ICRA added that while the situation is evolving, the recent tariff related development and the consequent inflationary pressures and slowdown in demand in the US could have a negative impact on revenue and earnings for component exporters (in the affected product categories) over the next few months. However, the rating agency suggest that the recent development could create long term opportunities for the Indian exporters as higher tariffs are being levied on other competing nations as well. It added that the exporters dependent on the US market are also trying to diversify their revenue base across other geographies (including Asia), meanwhile, measures to improve value addition, diversification into non-auto segments and cost-optimisation strategies are also being worked upon to reduce the potential impact on margins.

The CNX Nifty is currently trading at 22976.35, down by 273.75 points or 1.18% after trading in a range of 22921.60 and 23214.70. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.11%, Tata Consumer up by 1.98%, HDFC Bank up by 1.91%, Bharti Airtel up by 1.21% and Nestle up by 0.95%. On the flip side, ONGC down by 6.68%, Hindalco down by 6.63%, Cipla down by 5.98%, Tata Steel down by 5.67% and Tata Motors down by 5.29% were the top losers.

All Asian markets were trading lower; Straits Times fell 105.13 points or 2.74% to 3,837.10, KOSPI dropped 34.35 points or 1.4% to 2,452.35 and Nikkei 225 slipped 960.55 points or 2.84% to 33,775.38.