Domestic indices trade lower in early deals on profit booking

Indian equity markets have made a negative start and are trading lower with cut of over half percent in early morning session on Tuesday on account of profit booking after previous session’s rally. Selling in Infosys, Eternal, Power Grid, Kotak Mahindra Bank and ICICI Bank companies’ stocks dragged the markets lower. Rising crude oil prices and US Treasury yields weighed on the market sentiments. However, broader indices were trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.20-0.35%. There was some buzz in sugar industry related stocks as All India Sugar Trade Association said that India exported 4.24 lakh tonnes of sugar till April of the ongoing 2024-25 marketing year with maximum shipments of 92,758 tonnes to Somalia.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from US markets overnight, amid easing fears of a prolonged trade global war after reports that the US and China have agreed to drastically reduce the massive tariffs on each other's goods by 115 percent while retaining an additional 10 percent tariff. Back home, on the BSE sectoral front, traders were seen pilling up positions in Healthcare, Consumer Durables, Industrials, Capital Goods and PSU, while selling was witnessed in IT, TECK, Bankex, Basic Materials and FMCG.

The BSE Sensex is currently trading at 81979.53, down by 450.37 points or 0.55% after trading in a range of 81883.90 and 82572.81. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.21%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.50%, Consumer Durables up by 0.47%, Industrials up by 0.36%, Capital Goods up by 0.21% and PSU up by 0.15%, while IT down by 1.01%, TECK down by 0.96%, Bankex down by 0.49%, Basic Materials down by 0.36% and FMCG down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.33%, Indusind Bank up by 1.03%, Bajaj Finance up by 0.64%, Tech Mahindra up by 0.36% and Maruti Suzuki up by 0.11%. On the flip side, Infosys down by 1.89%, Eternal down by 1.61%, Power Grid down by 1.15%, Kotak Mahindra Bank down by 1.12% and ICICI Bank down by 1.01% were the top losers.

Meanwhile, India has proposed to impose retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on steel and aluminium in the name of safeguard measures. A WTO communication said the safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion. 

Accordingly, it said, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in America. Earlier in April, India had sought consultations with the US under the WTO's safeguard agreement, following American authorities' decision to impose these tariffs. The US informed the global trade body that its decision to impose the tariffs was based on national security grounds and should not be considered as safeguard measures.

On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25 per cent and 10 per cent ad valorem tariffs, respectively. It came into effect on March 23, 2018. It was extended in January 2020. On February 10 this year, the US again revised the safeguard measures on imports of steel and aluminium articles, effective from March 12, 2025, and with an unlimited duration. Now, it has imposed 25 per cent tariffs.

It stated ‘India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations...This notification is made in connection with safeguard measures extended by the United States of America on imports of aluminium, steel and derivative articles, vide Presidential Proclamation...dated 10 February 2025, with the effective date of12 March 2025.’

It said the communication, dated and received on May 9, 2025, is being circulated at the request of the delegation of India. It added that the measures have not been notified by the US to the WTO, but are, in essence, safeguard measures. ‘India maintains that the measures taken by the US are not consistent with the GATT (General Agreement on Trade and Tariff) 1994 and AoS (Agreement on safeguards),’ it said, adding that as consultations provided for under a provision of the AoS have not taken place, India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade.

The CNX Nifty is currently trading at 24767.40, down by 157.30 points or 0.63% after trading in a range of 24754.10 and 24973.80. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.74%, Sun Pharma up by 2.23%, Bharat Electronics up by 2.06%, Cipla up by 0.99% and Indusind Bank up by 0.99%. On the flip side, Hindalco down by 2.13%, Infosys down by 2.12%, Eternal down by 1.85%, Kotak Mahindra Bank down by 1.45% and Power Grid down by 1.42% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite strengthened 2.62 points or 0.08% to 3,371.86, Straits Times rose 12.41 points or 0.32% to 3,888.57, Nikkei 225 surged 594.27 points or 1.58% to 38,238.53 and Taiwan Weighted added 253.05 points or 1.2% to 21,382.59. However, Hang Seng declined 399.18 points or 1.7% to 23,150.28 and KOSPI dropped 1.54 points or 0.06% to 2,605.79.