Post Session: Quick Review

Local equity benchmarks extended their gains for a second consecutive session on Monday, with both the Nifty and Sensex closing over half a percent gains, as traders took some support amid the Reserve Bank of India's decision to pay Rs 2.68 lakh crore as a dividend to the central government for FY25. Markets made a gap-up opening and remained higher throughout the session, supported by broad-based buying across all sectoral indices.

Some of the important factors in today’s trade:

India becomes 4th largest economy:  Support came as NITI Aayog CEO BVR Subrahmanyam said that India has become the fourth largest economy in the world, overtaking Japan. He also added that the overall geopolitical and economic environment is favourable to India. 

GST council to meet soon to discuss rate rationalisation: Traders took some support amid the Goods and Services Tax Council is expected to convene shortly in New Delhi. Discussions will focus on simplifying tax rates and rationalisation. The future of the compensation cess will also be addressed.

FIIs turn net buyers: Foreign Institutional Investors (FIIs) bought equities worth Rs 1,794.59 crore on Friday, according to exchange data.    

Global front: European markets were trading in green as U.S. President Donald Trump delayed the roll out of 50 percent tariffs on the European Union to July 9 from June 1. Asian markets ended mostly in red as Japan's leading index decreased less than initially estimated in March to the lowest level in three months.

The BSE Sensex ended trading at 82176.45, up by 455.37 points or 0.56% after trading in a range of 81867.23 and 82492.24. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.56%, while Small cap index up by 0.48%. (Provisional)

The top gaining sectoral indices on the BSE were Auto up by 1.04%, Industrials up by 0.98%, IT up by 0.95%, FMCG up by 0.93% and Capital Goods up by 0.91%, while there were no losing sectoral indices on the BSE.  (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 2.26%, Trent up by 1.75%, HCL Technologies up by 1.60%, Tata Motors up by 1.58% and ITC up by 1.50%. On the flip side, Eternal down by 4.46%, Kotak Mahindra Bank down by 0.61%, Power Grid down by 0.50%, Ultratech Cement down by 0.48% and Tata Steel down by 0.37% were the top losers. (Provisional)

Meanwhile, Commerce and Industry Minister Piyush Goyal held his second meeting with US Commerce Secretary Howard Lutnick in Washington on May 23, 2025 to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On May 20 also, Goyal held a meeting with Lutnick to expedite the talks on the first phase of the trade pact. The meeting assumes significance as both the countries are looking at finalising an interim trade pact by July 8. 

The four-day discussions between the chief negotiators have also concluded in Washington on May 22. In the interim trade deal, New Delhi is pushing for full exemption from the 26 per cent reciprocal tariff on Indian goods. The US on April 2 imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days till July 9. However, the 10 per cent baseline tariff imposed by America remains in place. Due to the 90-day suspension of the 26 per cent additional import duty, Indian exporters are at present paying just 10 per cent baseline tariffs, instead of 26 per cent earlier proposed. At present, the Trump administration requires approval from the US Congress to bring tariffs below the MFN (most favoured nation) rates. But the administration has the authority to remove the reciprocal tariffs imposed on a number of countries, including India. 

India may look at certain commitments from the US on the duty concessions for its labour-intensive sector in the first tranche of the proposed bilateral trade agreement (BTA). Both countries have fixed a deadline to conclude the first phase of the pact by fall (September-October) of this year to more than double bilateral trade to $500 billion by 2030. 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, and agriculture items such as apples, tree nuts and GM (genetically modified) crops. While the import of GM crops from the US continues to remain a non-starter due to regulatory norms in India, New Delhi is open to import of non-GM products like Alpha alpha hay (a kind of cattle feed).

The CNX Nifty is currently trading at 25001.15, up by 148.00 points or 0.60% after trading in a range of 24900.50 and 25079.20. There were 38 stocks advancing against 11 stocks declining on the index, while one stock remained unchanged. (Provisional)

The top gainers on Nifty were Bajaj Auto up by 2.49%, Mahindra & Mahindra up by 2.24%, JSW Steel up by 2.17%, Hindalco up by 1.75% and Trent up by 1.72%. On the flip side, Eternal down by 4.59%, Ultratech Cement down by 0.49%, Kotak Mahindra Bank down by 0.43%, Power Grid down by 0.42% and Tata Steel down by 0.37% were the top losers. (Provisional) 

European markets were trading in green; Germany’s DAX gained 380.88 points or 1.61% to 24,010.46 and France’s CAC rose 95.96 points or 1.24% to 7,830.36.

Asian markets settled mostly down on Monday tracking Wall Street's fall last Friday and as US President Donald Trump threatened to roll out 25% tariffs by the end of next month on smartphones made by Apple, Samsung Electronics Company, and other companies, if they are not manufactured in the United States. Even though some falls were limited by easing trade tensions between the US and the European Union after Trump extended a deadline on aggressive European tariffs until July 9. Chinese and Hong Kong shares fell, with automobile and Apple suppliers leading the decline. While, China's yuan strengthened after the country's central bank tightened the midpoint fixing. However, Japanese shares rallied on trade optimism ahead of chief trade negotiator Ryosei Akazawa's visit to the US for a third round of talks.