Domestic indices add more losses in late morning deals

Domestic equity markets added more losses in late morning deals as market participants indulged in reducing their positions. Meanwhile, broader indices underperformed their large peers with BSE Small cap index and BSE Mid cap index falling in the range of 0.90-1.05%. Traders ignored report that India’s Services Purchasing Managers' Index (PMI) for April 2025, compiled by S&P Global, rose to 58.7, an increase from 58.5 recorded in March. The India Composite Purchasing Managers' Index (PMI) rose to 59.7, up from 59.5 in March. Pharmaceuticals industry related stocks were under pressure following U.S. President Donald Trump's executive order to promote domestic prescription drug production and his suggestion of potential tariffs on imported medicines. Aurobindo Pharma, Lupin, and Cipla were trading lower.  

On the global front, Asian markets were trading in green amid easing global trade concerns after US Treasury Secretary Scott Bessent said 17 trading partners, excluding China, have presented very good trade proposals and some deals may be announced as early as this week.  Back home, on the BSE sectoral front, traders were seen pilling up positions in Auto, TECK, Telecom and FMCG, while selling was witnessed in Realty, Oil & Gas, PSU, Energy and Utilities. 

The BSE Sensex is currently trading at 80545.10, down by 251.74 points or 0.31% after trading in a range of 80518.57 and 80981.58. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.03%, while Small cap index down by 0.93%.

The top gaining sectoral indices on the BSE were Auto up by 0.45%, TECK up by 0.29%, Telecom up by 0.16% and FMCG up by 0.12%, while Realty down by 1.73%, Oil & Gas down by 1.72%, PSU down by 1.65%, Energy down by 1.54% and Utilities down by 1.52% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.84%, Mahindra & Mahindra up by 1.79%, Hindustan Unilever up by 1.20%, Nestle up by 1.07% and Tata Steel up by 0.95%. On the flip side, Indusind Bank down by 2.37%, Adani Ports down by 2.24%, Eternal down by 2.17%, SBI down by 1.86% and Bajaj Finance down by 1.73% were the top losers.

Meanwhile, emphasizing the importance of the amalgamation, the Financial Services Secretary M Nagaraju has said that with the implementation of ‘One State, One RRB’, regional rural banks will expand their lending in agriculture and allied activities, MSME and government-sponsored schemes. In order to further improve the viability and financial performance of the rural banks, the government has implemented ‘One State, One RRB’ under which 26 regional rural banks across 11 states and Union territories have been amalgamated into standalone RRBs. 

As per finance ministry’s reported data the RRBs have grown in their reach to more than 22,000 branches, covering 700 districts in the country, and more than 92 per cent of their branches are in rural and semi-urban areas. During 2024-25, RRBs have recorded a consolidated net profit of Rs 7,148 crore with Gross Non-Performing Assets (GNPA) reaching to a new low of 5.3 per cent, which the lowest in a 10-year period.

It was decided that the sponsor banks, in consultation with the RRBs, will draft a five-year roadmap for the latter. He also urged the rural banks to continue to focus on their amalgamation process and long-term sustainability. He added that the sponsor banks have been asked to guide the RRBs in their amalgamation process and provide a level-playing field for long-term sustainability. Further, the sponsor banks should continue to facilitate technology upgrades in the RRBs and complete the integration process, adhering to the strict timeline of September 30. 

Nagaraju also suggested the sponsor banks and RRBs address the human resource-related issues emerging in the process. The ‘One State, One RRB’ has been in-effective since May 1,2025. The amalgamation has reduced the number of RRBs from 43 to 28, to further improve the viability and financial performance of the rural banks.

The CNX Nifty is currently trading at 24371.75, down by 89.40 points or 0.37% after trading in a range of 24366.65 and 24509.65. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 1.97%, Bharti Airtel up by 1.86%, Eicher Motors up by 1.38%, Mahindra & Mahindra up by 1.36% and Tata Steel up by 1.23%. On the flip side, Adani Enterprises down by 2.67%, Indusind Bank down by 2.41%, Adani Ports down by 2.23%, JIO Financial down by 2.19% and Eternal down by 2.08% were the top losers.

Asian markets were trading in green; Hang Seng advanced 185.75 points or 0.82% to 22,690.43, Jakarta Composite gained 62.2 points or 0.9% to 6,894.15, Shanghai Composite strengthened 34.41 points or 1.04% to 3,313.44, Straits Times rose 6.58 points or 0.17% to 3,859.65 and Taiwan Weighted added 7.86 points or 0.04% to 20,540.85.