Markets trade tad lower in early deals; IT, TECK lead losers

Indian equity benchmarks made a cautious start on Monday amid mixed global cues. Markets were struggling for direction and are trading tad lower at this point of trade. Some cautiousness came as think tank GTRI said that a proposed 5 per cent US tax on remittances sent abroad by non-citizens is raising alarm in India as it may hit Indian households and the rupee. However, downside remained capped as Reserve Bank of India (RBI) data showed that India's foreign exchange reserves (forex) rose $4.553 billion to $690.617 billion in the week that ended on May 9. 

On the global front, Asian markets are trading mostly lower, despite the broadly positive cues from Wall Street on Friday, as traders react to the surprise downgrade of the US government's credit rating by one notch to Aa1 from Aaa by Moody's Ratings, being the last of the three major credit rating agencies to downgrade it. 

Back home, OMCs are in focus as Care Edge Ratings reported that LPG losses incurred by oil marketing companies (OMCs) are expected to decrease by around 45 per cent in FY26 if crude oil prices remain stable at $65 per barrel. In stock specific development, Delhivery rose after it reported solid March quarter results for financial year 2025 (Q4FY25).

The BSE Sensex is currently trading at 82263.98, down by 66.61 points or 0.08% after trading in a range of 82116.00 and 82380.08. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.01%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Realty up by 0.95%, Auto up by 0.64%, Utilities up by 0.60%, Power up by 0.54% and PSU up by 0.41%, while IT down by 0.95%, TECK down by 0.82%, Energy down by 0.07%, Metal down by 0.06% and Basic Materials down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 0.80%, Sun Pharma up by 0.75%, NTPC up by 0.63%, Tata Motors up by 0.59% and Bajaj Finance up by 0.59%. On the flip side, Infosys down by 1.36%, Eternal down by 1.20%, HCL Technologies down by 0.99%, TCS down by 0.93% and Reliance Industries down by 0.74% were the top losers.

Meanwhile, economic think tank - the Global Trade Research Initiative (GTRI) has said that a proposed 5 per cent US tax on remittances sent abroad by non-citizens is raising alarm in India as it may hit Indian households and the rupee. The provision is part of a broader legislative package titled ‘The One Big Beautiful Bill’ introduced in the US House of Representatives on May 12. It targets international money transfers made by non-US citizens, including green card holders and temporary visa workers like those on H-1B or H-2A visas. The proposed levy will not be applicable to US citizens.

The GTRI said ‘The proposed US tax on remittances sent abroad by non-citizens is raising alarm in India, which stands to lose billions in annual foreign currency inflows if the plan becomes law’. For India, the stakes are high as the country received $120 billion in remittances in 2023-24, with nearly 28 per cent originating from the US. GTRI founder Ajay Srivastava said ‘A 5 per cent tax could significantly raise the cost of sending money home. A 10-15 per cent drop in remittance flows could result in a $12-18 billion shortfall for India annually.’

He said that the loss would tighten the supply of US dollars in India's foreign exchange market, putting modest depreciation pressure on the rupee. He added ‘The Reserve Bank of India may be forced to intervene more frequently to stabilise the currency. The rupee could weaken by Rs 1-1.5 per US dollar if the remittance shock plays out fully.’ In states like Kerala, Uttar Pradesh, and Bihar, millions of families rely on remittances to cover essential expenses like education, healthcare, and housing.

Srivastava said that a sudden decline in these flows could hit household consumption hard, at a time when the Indian economy is already navigating global uncertainty and inflation pressures. By taxing the global capital flow, he said, the US could disrupt a key channel of global development financing, reduce household income in poorer nations, and weaken demand in economies already grappling with inequality and instability. The development assumes significance, as India has proposed at the World Trade Organization (WTO) to lower the cost of cross-border flow of capital or remittances.

The CNX Nifty is currently trading at 25009.25, down by 10.55 points or 0.04% after trading in a range of 24965.80 and 25058.70. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.49%, Hero MotoCorp up by 2.41%, Eicher Motors up by 1.82%, Bharat Electronics up by 1.22% and Hindustan Unilever up by 0.76%. On the flip side, Infosys down by 1.42%, Eternal down by 1.22%, HCL Technologies down by 1.01%, TCS down by 0.95% and Tech Mahindra down by 0.88% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 288.62 points or 0.77% to 37,465.10, Taiwan Weighted lost 242.49 points or 1.12% to 21,601.20, Hang Seng declined 107.82 points or 0.46% to 23,237.23, KOSPI dropped 29.35 points or 1.13% to 2,597.52, Straits Times fell 4.03 points or 0.1% to 3,893.84 and Shanghai Composite weakened 3.02 points or 0.09% to 3,364.44, while Jakarta Composite was up by 29.89 points or 0.42% to 7,136.42.