Key gauges end at day's lows on profit booking

After witnessing a stellar up-move in the previous session, Indian equity benchmarks slipped into weakness subsequently on Tuesday and settled near day’s low points due to profit-taking in TECK, IT and Utilities shares. Rising crude oil prices and a strong US dollar overseas also weighed on sentiments.  

Some of the important factors in trade:

US-China deal to roll back high tariffs presents challenges, opportunities for India: A private report said that recent decision by the US and China to suspend their tariff hikes for 90 days presents both challenges and opportunities for India. 

CTI urges business entities to boycott Chinese Turkish goods in national interest: The Chamber of Trade and Industry (CTI) has appealed to over 700 business organisations in the national capital to halt all forms of trade with China and Turkey. China and Turkey have supported rival positions in the Indo-Pak conflict.

Foreign fund inflows: Foreign Institutional Investors (FIIs) bought equities worth Rs 1,246.48 crore on Monday after a day's breather, according to exchange data. 

Sugar stocks were in focus: 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.

Positive global cues: European markets were trading higher amid signs of progress in U.S.-China trade talks. Asian markets settled mostly higher on Tuesday as initial euphoria over the U.S.-China trade deal faded and investors lowered their bets of Federal Reserve rate cuts this year. 

Finally, the BSE Sensex fell 1281.68 points or 1.55% to 81,148.22, and the CNX Nifty was down by 346.35 points or 1.39% to 24,578.35.    

The BSE Sensex touched high and low of 82,572.81 and 81,043.69 respectively. There were 5 stocks advancing against 25 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.17%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Industrials up by 1.24%, Capital Goods up by 1.04%, Healthcare up by 0.96%, Consumer Durables up by 0.14% and PSU up by 0.13%, while TECK down by 2.39%, IT down by 2.21%, Utilities down by 1.35%, FMCG down by 1.07%, Power down by 1.00% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.84%, Adani Ports &SEZ up by 0.48%, Bajaj Finance up by 0.29%, SBI up by 0.04% and Tech Mahindra up by 0.03%. On the flip side, Infosys down by 3.54%, Power Grid Corporation down by 3.40%, Eternal down by 3.38%, HCL Technologies down by 2.94% and TCS down by 2.88% 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 traded in a range of 24,973.80 and 24,547.50. There were 14 stocks advancing against 35 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Bharat Electronics up by 4.06%, JIO Financial Services up by 1.83%, Hero MotoCorp up by 1.77%, Dr. Reddy's Lab up by 1.04% and Sun Pharma up by 0.95%. On the flip side, Infosys down by 3.63%, Eternal down by 3.34%, Power Grid Corporation down by 3.19%, HCL Technologies down by 3.02% and TCS down by 2.83% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 12.71 points or 0.15% to 8,617.69, France’s CAC rose 8.93 points or 0.11% to 7,859.03 and Germany’s DAX gained 22.61 points or 0.1% to 23,589.15.

Asian markets settled mostly higher on Tuesday tracking Wall Street’s gains overnight as tensions over the US-China trade deal faded after the United States and China agreed to drastically reduce the massive tariffs on each other's goods for 90 days, following negotiations over the weekend in Switzerland. Meanwhile investors turned their focus to a key US inflation data due later in the day. Chinese markets rose, even as a majority of defense company shares fell sharply following the ceasefire announcement between India and Pakistan. Moreover, Japanese markets gained as a weaker yen spurred exporters such as electronics makers and auto stocks.