Post Session: Quick Review

Indian equity benchmarks ended near day’s low points on Thursday, amid escalating geopolitical tensions after Iran seized two vessels in the Strait of Hormuz and fired at ships in the region. Markets made a gap-down opening and remained under selling pressure throughout the session, as traders were cautious after foreign investors remained net sellers for a second consecutive session.

Some of the important factors in trade:

Foreign fund outflows: Sentiment remained downbeat due to Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,078.36 crore on Wednesday, according to exchange data. 

Net sales growth of FDI companies moderated to 8.7% in FY25: Some cautiousness came as the RBI data showed that net sales growth of the select foreign direct investment (FDI) companies moderated to 8.7 per cent in 2024-25 from 9.4 per cent in the previous year.  

Bank credit growth likely to ease below 12% in FY27: Traders remained cautious as domestic ratings agency ICRA stated that bank credit growth is likely to moderate to under 12 per cent in this financial year from 15.6 per cent achieved in FY26, largely due to the West Asia conflict and the evolving interest rate dynamics.  

On the global front: European markets were trading mostly in red amid escalating geopolitical tensions after Iran fired on three ships in the Strait of Hormuz and seized two of them for ‘maritime violations’, in the region. Asian markets ended mostly higher amid the continued closure of the critical Strait of Hormuz.

The BSE Sensex ended at 77664.00, down by 852.49 points or 1.09% after trading in a range of 77574.18 and 78178.54. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The few gaining sectoral indices on the BSE were Healthcare up by 1.66%, Power up by 0.40%, Capital Goods up by 0.40% and Industrials up by 0.11%, while Auto down by 2.27%, Realty down by 1.91%, Consumer Discretionary down by 1.71%, Consumer Durables down by 1.63%, Bankex down by 1.46% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports and Special Economic Zone up by 1.23%, Larsen & Toubro up by 0.82%, Bharti Airtel up by 0.69%, Sun Pharma up by 0.59% and Bharat Electronics up by 0.18%. On the flip side, Trent down by 4.36%, Tech Mahindra down by 3.13%, Bajaj Finserv down by 2.93%, Infosys down by 2.87% and Mahindra & Mahindra down by 2.79% were the top losers. (Provisional)

Meanwhile, India's private sector activity improved in the month of April, as factories and services sector recovered from March slowdown. New orders and output increased at faster rates for goods producers compared to service providers. According to the data report, the HSBC Flash India Manufacturing PMI surged from 53.9 in March to 55.9 in April, while HSBC Flash India Services PMI Business Activity Index rose to 57.9 in April from March’s final reading of 57.5. Besides, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was up from a final reading of 57.0 in March to 58.3 in April, indicating a sharp rate of growth that was substantial relative to its long-run average.

On the inflation front, private sector companies in India witnessed elevated cost pressures in April as well, on the back of rising fuel, gas, oil and raw material prices. Although below that seen in March, the overall rate of input cost inflation was the second-steepest in close to three years. Indian companies responded to mounting cost burdens by raising selling prices again in April. Although marked and above its trend, the rate of output charge inflation was well below that seen for input costs. 

The report further noted that the rate of job creation across India's private sector reached a ten-month high in April, on account of rising business requirements, expansion plans and upbeat year-ahead forecasts. Hiring growth strengthened at manufacturing firms and their services counterparts, with the quicker upturn among the former. Meanwhile, Indian companies foresee an increase in output over the course of the coming 12 months, with expectations that marketing efforts will support demand for their goods and services, with projects pending approval and rising client enquiries also boosting optimism. The overall level of confidence fell since March, but was the second-highest in nearly a year-and-a-half.

The CNX Nifty ended at 24173.05, down by 205.05 points or 0.84% after trading in a range of 24134.80 and 24310.20. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddy's Lab up by 9.37%, Cipla up by 5.63%, JIO Financial Services up by 4.26%, Adani Enterprises up by 1.77% and Coal India up by 1.52%. On the flip side, Trent down by 4.30%, Shriram Finance down by 3.31%, Mahindra & Mahindra down by 3.24%, Tech Mahindra down by 3.12% and Bajaj Finserv down by 3.07% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 97.83 points or 0.94% to 10,378.63, and Germany’s DAX lost 150.4 points or 0.63% to 24,044.50, while France’s CAC rose 14.07 points or 0.17% to 8,170.50.

Asian markets settled mostly lower on Thursday as Brent crude prices surged above $100 a barrel amid the continued closure of the Strait of Hormuz. In a significant escalation of the Middle East conflict, Iran stated that it would not reopen the Strait of Hormuz as long as the US naval blockade remained in place, calling it a ‘blatant violation’ of the ceasefire between the longtime foes. Additionally, Iran seized two container ships that were trying to exit the Gulf via the Strait of Hormuz on Wednesday. Japanese shares declined as profit-taking set in before the Bank of Japan's (BoJ) upcoming policy meeting. Hong Kong shares fell as investors turned cautious ahead of the release of key March inflation data, that could offer fresh signals on price pressures and influence expectations for monetary conditions. Market attention also turned to the 14th National People’s Congress Standing Committee (NPCSC), scheduled to convene for its 22nd session from April 27 to 30, 2026, where Chinese lawmakers will focus on reviewing eight legislative bills and approving the legislature's annual work plans.