Domestic equity markets trade lower with cut of over quarter percent

Domestic equity markets erased all of their gains and were trading lower with cut of over quarter percent in late morning deals on account of selling by funds and retail investors. The broader indices were also trading in red with BSE Mid cap index and Small cap index falling in the range of 0.20-0.40%. Rising crude oil prices weighed on the domestic sentiments. Crude oil prices rose on worries that the Iran-Israel conflict could disrupt supplies. Meanwhile, traders remained on sidelines ahead of the U.S. Fed's interest-rate decision. On the BSE sectoral front, traders were seen pilling up positions only in Auto and Consumer Disc, while selling was witnessed in IT, Metal, Power, Utilities and TECK.

On the global front, Asian markets were trading mixed amid concerns about the escalating tensions in the Middle East that fueled fresh speculation that the U.S. is on the verge of joining Israel's attack on Iran. Back home, in the stock specific development, Hindustan Zinc plunged as promoter Vedanta offloaded a 1.71 percent stake in the company through block deals.

The BSE Sensex is currently trading at 81319.38, down by 263.92 points or 0.32% after trading in a range of 81304.10 and 81858.97. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.38%, while Small cap index down by 0.23%.

The only gaining sectoral indices on the BSE were Auto up by 0.56% and Consumer Disc up by 0.33%, while IT down by 0.82%, Metal down by 0.68%, Power down by 0.66%, Utilities down by 0.63% and TECK down by 0.60% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.91%, Maruti Suzuki up by 1.16%, Mahindra & Mahindra up by 0.96%, Eternal up by 0.85% and Bharti Airtel up by 0.49%. On the flip side, Adani Ports down by 1.16%, Hindustan Unilever down by 1.00%, Kotak Mahindra Bank down by 0.86%, TCS down by 0.79% and Infosys down by 0.77% were the top losers. 

Meanwhile, India Ratings and Research in its latest report has indicated that early onset of monsoon may impact the cement demand which grew 7 percent year-on-year in April this year. However, it expects the overall cement demand to grow in single digits in the June quarter on the weak base a year ago due to general elections. Besides, the report has highlighted that the notable recovery of 10-11 per cent y-o-y made by the cement volume in the March 2025 quarter was driven by an 11 percent y-o-y pick-up in infrastructure to Rs 10.5 trillion, led by the central government capex after a similar y-o-y decline in 8M FY25.

Despite this late recovery, the report noted that the weak H1 restricted the overall demand growth for FY25 to 5 to 6 percent, which is the lowest since the pandemic affected FY21. Moreover, price hikes also aided the manufacturers in improving sales realisations in Q1 FY26 after a multi-decadal fall last fiscal. Cement players took multiple price hikes in April-May 2025, propelling y-o-y growth in prices after five quarters despite some rollbacks. However, it pointed out that the additional supply outpacing the demand growth led by the intensified market share race had led to 5-6 percent y-o-y fall in cement prices in FY25, marking the sharpest annual decline in the past 20 years. 

The agency expects consolidation in the cement sector to continue, where the top five players are snapping up smaller firms. It highlighted that the challenging operating environment in FY25 has widened the performance gap between large (Tier 1) and small (Tier 2) cement players. While the overall listed cement universe recorded 5-6 percent y-o-y growth in sales volumes, Tier 2 players saw a decline of 2-3 percent. This further impacted on the profitability of the key players with median EBITDA per tonne for Tier 1 companies declining around 20 per cent y-o-y, while Tier 2 players experienced a steep drop of over 50 per cent. Moreover, the report noted that this sharp decline in profitability has weakened the credit metrics of small players, whereas Tier 1 companies have maintained comfortable financial headroom, potentially paving the way for further consolidation.

The CNX Nifty is currently trading at 24773.10, down by 80.30 points or 0.32% after trading in a range of 24770.05 and 24947.55. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.37%, Trent up by 1.51%, Maruti Suzuki up by 1.13%, Eicher Motors up by 1.03% and Mahindra & Mahindra up by 0.94%. On the flip side, Adani Ports down by 1.34%, Nestle down by 1.25%, Hindustan Unilever down by 1.18%, Kotak Mahindra Bank down by 1.06% and TCS down by 0.95% were the top losers. 

Asian markets were trading mixed; KOSPI increased 14.67 points or 0.49% to 2,964.97, Nikkei 225 surged 277.22 points or 0.71% to 38,813.96, Taiwan Weighted added 145.14 points or 0.65% to 22,356.73 and Shanghai Composite strengthened 1.62 points or 0.05% to 3,389.02. However, Hang Seng declined 294.07 points or 1.24% to 23,686.23, Jakarta Composite plunged 43.62 points or 0.61% to 7,112.23, Straits Times fell 15.86 points or 0.41% to 3,914.78.