Markets extend losses in late trade

Bourses have extended losses in late trade with FMCG, Auto and IT stocks experiencing selling pressure. Traders remained cautious ahead of release of key macroeconomic data this week including first quarter’s GDP data, Industrial production and manufacturing output data for April to be out later in the week. Investors overlooked report that Government of India restoring benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs). The decision aimed at boosting country’s export competitiveness in global markets.

On the global front, Asian equity markets were trading mixed as investors awaited new tariff updates and assessed the impact of U.S. President Donald Trump's policies on global growth. European equity markets were trading higher amid continued optimism surrounding the delay of U.S. President Donald Trump's proposed 50 percent tariff on EU imports.

The BSE Sensex is currently trading at 81224.43, down by 952.02 points or 1.16% after trading in a range of 81121.70 and 82410.52. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.03%, while Small cap index was up by 0.06%.

The few gaining sectoral indices on the BSE were Telecom up by 0.45%, Realty up by 0.27%, Industrials up by 0.24% and Capital Goods up by 0.03%, while FMCG down by 1.06%, Auto down by 1.03%, IT down by 1.03%, Bankex down by 0.96%, Energy down by 0.90% were the top losing indices on BSE.

The few gainers on the Sensex were Trent up by 0.44%, Bharat Electronics up by 0.13%, Asian Paints up by 0.06% and Adani Ports up by 0.05%. On the flip side, Ultratech Cement down by 2.60%, ITC down by 2.21%, Mahindra & Mahindra down by 2.01%, Axis Bank down by 1.86% and NTPC down by 1.82% were the top losers.

Meanwhile, the government has removed port restrictions on exports of certain kinds of leather, including finished, wet blue and El tanned, a move hailed by sector exporters. It has also revoked the requirement for testing and certification by the Central Leather Research Institute (CLRI) for finished Leather, wet blue Leather, crust leather and El (East India) tanned leather. 

This step is expected to reduce the compliance burden and improve ease of doing business for exporters. Export of finished leather, wet blue leather, and EI-tanned leather is now allowed from any port or Inland Container Depot (ICD). Earlier, these exports were restricted to specific notified ports.

These procedural requirements were originally instituted to monitor the export of value-added leather products and distinguish them from raw hides and dutiable items. However, with the removal of export duties on such leather categories and the clear physical distinction between processed and raw leather, the existing checks were considered redundant.

The decision was taken after consultations with stakeholders, including the Council for Leather Exports, exporters and CLRI. It is expected to streamline export procedures, reduce transaction costs, and benefit MSME exporters in particular. The reforms also support India's efforts to enhance export competitiveness in the global leather value chain while maintaining transparency and quality standards under general customs provisions.

The CNX Nifty is currently trading at 24757.40, down by 243.75 points or 0.97% after trading in a range of 24704.10 and 25062.90. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were JIO Financial Services up by 3.07%, Indusind Bank up by 2.79%, Trent up by 0.46%, Asian Paints up by 0.25% and Bharat Electronics up by 0.20%. On the flip side, Ultratech Cement down by 2.55%, ITC down by 2.18%, Axis Bank down by 2.02%, JSW Steel down by 1.94% and Mahindra & Mahindra down by 1.79% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 99.66 points or 0.43% to 23,381.99, Jakarta Composite gained 5.29 points or 0.07% to 7,193.64 and Straits Times rose 16.57 points or 0.43% to 3,892.17, while KOSPI dropped 7.18 points or 0.27% to 2,637.22, Nikkei 225 surged 192.58 points or 0.51% to 37,724.11, Shanghai Composite weakened 6.15 points or 0.18% to 3,340.69 and Taiwan Weighted lost 200.03 points or 0.94% to 21,336.54.

European markets were trading higher; UK’s FTSE 100 increased 76.26 points or 0.87% to 8,794.23, France’s CAC rose 8.61 points or 0.11% to 7,836.74 and Germany’s DAX gained 103.49 points or 0.43% to 24,131.14.