Markets extend losses in late trade

Key gauges extended losses in late trade, dragged down by selling in Auto, Banking and Pharma stocks. Despite supportive global cues, all sectoral indices continued to trade in red with Auto taking the most hit. The broader markets were trading lower with BSE Mid caps and Small caps plunging 1.56% and 1.06%, snapping their six-day winning streak. Also, traders paid no heed towards reports of Commerce and Industry Minister Piyush Goyal held discussions with US Commerce Secretary Howard Lutnick in Washington to expedite negotiations on the first phase of the proposed bilateral trade agreement between the two countries. The main issues that will figure in the negotiations include market access, rules of origin, and non-tariff barriers.

On the global front, Asian equity markets were trading mostly in green after China's central bank cut interest rates to record lows to stimulate the world's second-largest economy challenged by weak consumer demand and a property crisis. European equity markets were trading higher. 

The BSE Sensex is currently trading at 81259.63, down by 799.79 points or 0.97% after trading in a range of 81254.88 and 82250.42. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index plunged 1.56%, while Small cap index was down by 1.06%.

The top losing sectoral indices on the BSE were Auto down by 2.05%, Consumer Discretionary down by 1.69%, Telecom down by 1.59%, Utilities down by 1.57% and Power down by 1.45%. Meanwhile, there were no gainer on BSE sectoral index.

The few gainers on the Sensex were Tata Steel up by 0.79%, Indusind Bank up by 0.50% and Infosys up by 0.22%. On the flip side, Eternal down by 3.51%, Maruti Suzuki down by 2.27%, Mahindra & Mahindra down by 2.06%, Power Grid Corporation of India down by 1.86% and Bajaj Finance down by 1.73% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal held discussions with US Commerce Secretary Howard Lutnick in Washington to expedite negotiations on the first phase of the proposed bilateral trade agreement between the two countries. Goyal is in Washington for a ministerial-level meeting to review the progress of negotiations of the trade pact. Goyal was in Washington in March also for the trade talks. 

The minister-level meeting is followed by the deliberations between chief negotiators of the two countries, which will continue until May 22, 2025. The meetings come against the backdrop of both countries exploring the possibility of an interim trade arrangement in goods to secure ‘early mutual wins’ ahead of finalising the first phase of the trade agreement by fall (September-October) this year. The main issues that will figure in the negotiations include market access, rules of origin, and non-tariff barriers.

Officials from New Delhi and Washington aim to take advantage of the 90-day tariff pause window to advance the talks. The US has suspended the additional 26 per cent tariffs on India till July 9. It was announced on April 2 to bridge the widening trade deficit. However, the 10 per cent baseline tariff imposed on the countries will continue to remain in place.

To boost bilateral trade, India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, chemicals, grapes, and bananas in the proposed pact with America. On the other hand, the US wants duty concessions in sectors like certain industrial goods, automobiles (electric vehicles in particular), wines, petrochemical products, dairy, agriculture items such as apples, and tree nuts. The terms of reference (ToRs) for the BTA have been finalised by India and the US, which include around 19 chapters covering issues like tariffs, goods, services, rules of origin, non-tariff barriers, and customs facilitation.

The CNX Nifty is currently trading at 24707.95, down by 237.50 points or 0.95% after trading in a range of 24696.80 and 25010.35. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.55%, ONGC up by 1.40%, Tata Steel up by 0.78%, Indusind Bank up by 0.48% and Dr. Reddy's Laboratories up by 0.43%. On the flip side, Eternal down by 3.69%, Hero MotoCorp down by 3.45%, Bajaj Auto down by 3.08%, Shriram Finance down by 2.81% and Eicher Motors down by 2.60% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 348.76 points or 1.47% to 23,681.48, Nikkei 225 surged 30.86 points or 0.08% to 37,529.49, Taiwan Weighted added 2.2 points or 0.01% to 21,526.03, Shanghai Composite strengthened 12.9 points or 0.38% to 3,380.48 and Straits Times rose 6.6 points or 0.17% to 3,882.80, while Jakarta Composite plunged 34.42 points or 0.48% to 7,106.67 and KOSPI dropped 1.62 points or 0.06% to 2,601.80.

European markets were trading higher; UK’s FTSE 100 increased 40.97 points or 0.47% to 8,740.28, France’s CAC rose 8.52 points or 0.11% to 7,892.15 and Germany’s DAX gained 25.54 points or 0.11% to 23,960.52.