Markets add more losses in late morning deals

Indian equity markets added more losses and were trading lower with cut of around half a percent in late morning deals as market participants indulged in reducing their positions. The broader indices were also trading in red with BSE Small cap index and Mid cap index falling in the range of 0.30-0.65 percent. Traders were cautious as the Reserve Bank of India’s latest monthly bulletin stated that net foreign direct investment (FDI) into India fell 98% year-on-year to $35 million in May 2025 amid higher repatriation by overseas investors and a fall in gross inflows. On the BSE sectoral front, traders were seen pilling up positions in Healthcare, Auto, Consumer Disc and Metal, while selling was witnessed in IT, Realty, TECK, Energy and Capital Goods.

On the global front, Asian markets were trading in green as the latest trade developments between the U.S. and Japan, as well as positive signs for a deal with the European Union, spurred investor optimism. Back home, in the stock specific development, Infosys fell despite Q1 earnings coming in above expectations. 

The BSE Sensex is currently trading at 82344.57, down by 382.07 points or 0.46% after trading in a range of 82299.14 and 82784.24. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.61%, while Small cap index down by 0.33%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.52%, Auto up by 0.17%, Consumer Disc up by 0.03% and Metal up by 0.02%, while IT down by 1.52%, Realty down by 1.21%, TECK down by 1.10%, Energy down by 0.93% and Capital Goods down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 3.29%, Tata Motors up by 1.74%, Sun Pharma up by 0.41%, Bharti Airtel up by 0.30% and Tata Steel up by 0.18%. On the flip side, Trent down by 3.29%, Tech Mahindra down by 1.94%, Reliance Industries down by 1.68%, Infosys down by 1.07% and Bharat Electronics down by 1.00% were the top losers.

Meanwhile, citing uncertainties around US tariffs and weak investment climate, India Ratings & Research (Ind-Ra) has pared India's growth projection for the current fiscal to 6.3 per cent. It expects country’s GDP to grow at 6.3 per cent year on year in FY26, which is 30 basis point lower than its earlier forecast of 6.6 per cent made in December 2024. 

It highlighted that monetary easing, faster-than-expected decline in inflation and likely above-normal rainfall in 2025 are some of the tailwinds that are likely to minimise the impact of strong headwinds emanating from the uncertain global scenario. Further, it expects average retail inflation at 3 per cent and exchange rate at Rs 86.9 to a dollar in the current fiscal. 

It expects monetary easing and capital expenditure to be the major growth drivers. It noted that the pace of monetary easing in 2025 has been faster than its expectations. However, the tariff hikes by the US have increased the global economic uncertainty, leading to slower growth for both global demand and trade. It also hinted that this led to investors adopting a wait and watch mode before taking decisions on greenfield expansion.

The CNX Nifty is currently trading at 25112.65, down by 107.25 points or 0.43% after trading in a range of 25101.60 and 25246.25. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Eternal up by 3.29%, Dr. Reddy's Lab up by 2.51%, Tata Consumer up by 1.93%, Tata Motors up by 1.83% and JIO Financial up by 1.18%. On the flip side, Trent down by 3.10%, Shriram Finance down by 2.24%, Nestle down by 2.06%, Tech Mahindra down by 2.01% and Hero MotoCorp down by 1.78% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 68.93 points or 0.27% to 25,607.00, Jakarta Composite gained 91.11 points or 1.21% to 7,560.34, Shanghai Composite strengthened 13.45 points or 0.38% to 3,595.75, Straits Times rose 34.4 points or 0.81% to 4,265.68, KOSPI increased 7.23 points or 0.23% to 3,191.00, Nikkei 225 surged 701.68 points or 1.7% to 41,873.00 and Taiwan Weighted added 55.06 points or 0.24% to 23,373.73.