Intensify selling drags markets in deep red

An intensified selling dragged Indian equity markets in deep red during late afternoon deals, with investors reacting to global uncertainties including escalating tensions in the Middle East and a cautious tone ahead of the weekly F&O expiry. All sectors on the BSE were witnessing a fall with Oil & Gas sector declining the most. Traders were cautious, amid private report stating that India's infrastructure sector witnessed a mixed performance in the fourth quarter of FY25, with revenues and profit margins under pressure despite improvement in order inflows. Textile stocks remained in watch, as the Task Force on Textiles Exports has held its first meeting under the Chairmanship of Commerce Secretary, Sunil Barthwal, at Vanijya Bhawan in Delhi, in order to discuss issues & strategies for enhancing textiles exports from India.

On the global front, European markets were trading mostly in red, as the UK economy shrank more than expected in April largely reflecting a fall in services output. The Office for National Statistics reported that real gross domestic product declined 0.3 percent month-on-month in April, following a growth of 0.2 percent in March. This was the biggest fall since October 2023. GDP was expected to drop marginally by 0.1 percent. Asian markets were also trading mostly in red. 

The BSE Sensex is currently trading at 81736.73, down by 778.41 points or 0.94% after trading in a range of 81523.16 and 82661.04. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index plunged by 1.27%, while Small cap index was down by 1.10%.

The top losing sectoral indices on the BSE were Oil & Gas down by 1.92%, Power down by 1.91%, Utilities down by 1.87%, Consumer Durables down by 1.83% and Capital Goods down by 1.79%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.26%, Tech Mahindra up by 0.46%, Asian Paints up by 0.31% and Sun Pharma up by 0.01%. On the flip side, Tata Motors down by 2.74%, Larsen & Toubro down by 2.39%, Titan down by 2.31%, Trent down by 2.13% and Tata Steel down by 2.11% were the top losers.

Meanwhile, in order to discuss issues & strategies for enhancing textiles exports from India, the Task Force on Textiles Exports has held its first meeting under the Chairmanship of Commerce Secretary, Sunil Barthwal, at Vanijya Bhawan in Delhi. 

The discussions covered matters and issues pertaining to the entire textile value chain, including issues related to the upgradation of ESG infrastructure in garment manufacturing units, use of renewable energy, European Union Deforestation Regulation (EUDR), strengthening of e-commerce for export growth and simplifying regulatory framework, labour, cost competitiveness for productivity enhancement, skilling, Branding, suggestions regarding Interest Subvention Schemes, assistance for Certification & Testing, collateral Support for export Credit for MSME Exporters, RoDTEP / RoSCTL / Duty Drawback, PM MITRA Parks, Development of new Jute Diversified Products (JDPs), Separate HS codes for GI Products, productivity enhancement of natural fibres such as jute and matters pertaining to the Export Promotion Mission being set up by Department of Commerce apart from other textiles export related issues.

The primary objective of setting up the Textiles Task Force is to create a unified platform for addressing critical issues concerning the textile sector by involving all relevant stakeholders. It would lead to active collaboration amongst all stakeholders to help resolve issues and formulate strategies for enhancing India’s share of textile exports in global markets.

The CNX Nifty is currently trading at 24906.80, down by 234.60 points or 0.93% after trading in a range of 24825.90 and 25196.20. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 1.21%, Apollo Hospital up by 1.05%, Tech Mahindra up by 0.56%, Dr. Reddy's Lab up by 0.44% and Wipro up by 0.36%. On the flip side, Tata Motors down by 2.69%, Larsen & Toubro down by 2.24%, Shriram Finance down by 2.19%, Tata Steel down by 2.18% and Titan down by 2.17% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 331.56 points or 1.38% to 24,035.38, Jakarta Composite plunged 15.55 points or 0.22% to 7,206.91, Straits Times fell 0.66 points or 0.02% to 3,918.39, Nikkei 225 slipped 248.1 points or 0.65% to 38,173.09 and Taiwan Weighted lost 182.28 points or 0.82% to 22,287.82, while Shanghai Composite strengthened 0.34 points or 0.01% to 3,402.66 and KOSPI increased 12.99 points or 0.44% to 2,920.03. 

European markets were trading mostly in red; France’s CAC fell 44.57 points or 0.57% to 7,731.33 and Germany’s DAX lost 237.21 points or 0.99% to 23,711.69, while UK’s FTSE 100 increased 2.34 points or 0.03% to 8,866.69.