Post Session: Quick Review

Local equity benchmarks ended sharply lower on Tuesday, weighed down by weak cues from Asian markets along with a broad-based sell-off across sectors. Markets made a negative start, as investors remained cautious ahead of key economic data releases, including industrial and manufacturing production figures for April due on Wednesday. Markets recovered from their initial losses during the late morning session, but failed to hold gains and closed with significant losses.

Some of the important factors in today’s trade:

India to become 4th largest economy in world by overtaking Japan: Traders overlooked NITI Aayog member Arvind Virmani’s statement that India is set to become the fourth largest economy in the world by overtaking Japan by the end of 2025. 

Government restores RoDTEP benefits for AA, SEZ, EOU exports: Traders failed to take any sense of relief with report that the Government of India has restored 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). 

US enjoys $35-40 billion surplus with India: The economic think tank GTRI said that the US, despite reporting a $44.4 billion trade deficit with India, runs a $35 to $40 billion overall surplus when revenues from education, digital services, financial activities, royalties, and arms trade are factored in.    

Global front: European markets were trading in green amid continued optimism surrounding the delay of U.S. President Donald Trump's proposed 50 percent tariff on EU imports. Asian markets ended mixed even after China's industrial profits increased in April despite higher US trade tariffs. 

The BSE Sensex ended at 81551.63, down by 624.82 points or 0.76% after trading in a range of 81121.70 and 82410.52. There were 6 stocks advancing against 24 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.19%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 0.78%, Industrials up by 0.53%, Capital Goods up by 0.42%, Realty up by 0.25% and Consumer Durables up by 0.08% while, FMCG down by 0.79%, IT down by 0.71%, Auto down by 0.66%, Energy down by 0.61% and Bankex down by 0.60% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Trent up by 0.89%, Adani Ports and Special Economic Zone up by 0.42%, Sun Pharmaceutical Industries up by 0.42%, Bharat Electronics up by 0.08% and Bharti Airtel up by 0.04%. On the flip side, Ultratech Cement down by 2.21%, ITC down by 1.78%, Tata Motors down by 1.61%, Axis Bank down by 1.38% and NTPC down by 1.28% were the top losers. (Provisional)

Meanwhile, Niti Aayog in a report titled 'Designing a Policy for Medium Enterprises', has pitched for tailored financial tools, technology integration and a centralised digital portal to transform medium enterprises into future growth engines of India's economy. It highlighted the critical yet under-leveraged role played by medium enterprises and outlined targeted interventions to unlock their full potential. To address challenges faced by medium enterprises, it recommended the introduction of a working capital financing scheme linked to enterprise turnover, a Rs 5 crore credit card facility at market rates and expedited fund disbursal mechanisms through retail banks, overseen by the Ministry of MSME. It also suggested the upgradation of existing technology centres into sector-specific and regionally customised India SME 4.0 competence centres to promote the adoption of Industry 4.0 solutions.

The Aayog also recommended the establishment of a dedicated R&D cell within the Ministry of MSME, leveraging the Self-Reliant India Fund for cluster-based projects of national significance. It also called for the development of sector-focused testing and certification facilities to ease compliance and enhance product quality. It also suggested the creation of a dedicated sub-portal within the Udyam platform, featuring scheme discovery tools, compliance support, and AI-based assistance to help enterprises navigate resources effectively.

The report emphasised that unlocking the potential of medium enterprises requires a shift toward inclusive policy design and collaborative governance. With strategic support in finance, technology, infrastructure, skilling, and information access, medium enterprises can emerge as the drivers of innovation, employment, and export growth.

The CNX Nifty ended at 24826.20, down by 174.95 points or 0.70% after trading in a range of 24704.10 and 25062.90. There were 11 stocks advancing against 39 stocks declining on the index. (Provisional)

The top gainers on Nifty were JIO Financial Services up by 3.43%, Indusind Bank up by 2.57%, Trent up by 0.85%, Sun Pharmaceutical Industries up by 0.44% and Adani Ports and Special Economic Zone up by 0.42% up by 0.29%. On the flip side, Ultratech Cement down by 2.29%, ITC down by 2.03%, JSW Steel down by 1.80%, Tata Motors down by 1.72% and Axis Bank down by 1.61% were the top losers. (Provisional) 

European markets were trading higher; UK’s FTSE 100 increased 93.37 points or 1.06% to 8,811.34, Germany’s DAX gained 200.78 points or 0.83% to 24,228.43 and France’s CAC rose 26.51 points or 0.34% to 7,854.64.

Asian markets ended mixed on Tuesday as investors assessed the impact of US President Donald Trump's policies on global growth. Meanwhile, rising Covid-19 cases across Southeast Asia kept traders cautious. Chinese shares declined, despite industrial firms reporting faster profit growth in April. The People's Bank of China has asked major lenders to raise the share of yuan when facilitating cross-border trade. Seoul shares dipped on profit booking. Hong Kong shares rose ahead of upcoming China PMI data. Japanese shares gained as the yen weakened and yields fell on super long-dated bonds ahead of a bond auction, with reports suggesting that the finance ministry might issue fewer super-long bonds.