Post Session: Quick Review

Indian equity benchmarks ended sharply lower on Friday dragged by heavy selling pressure in IT and TECK sector stocks. Markets made a gap-down opening and maintained their losses throughout the session, amid supply disruptions and escalating tensions around the Strait of Hormuz. Additionally, sustained outflows from Foreign Institutional Investors (FIIs) dampened investors’ sentiment.

Some of the important factors in trade:

Continued foreign fund outflows: Sentiment remained downbeat as FIIs extended their selling streak for the fourth consecutive session and offloaded equities worth Rs 3,254.71 crore.  

Conflict in West Asia, supply chain issues to pose challenges to domestic economy: Some cautiousness came as RBI bulletin said persistent conflict in West Asia and supply chain disruptions could pose challenges to the domestic economy in the form of higher energy costs, input cost pressures, disruption in trade flows and financial market spillovers. 

India’s engineering exports dip 66.8% to UAE, 45% to Saudi Arabia in March: Traders remained cautious with the EEPC data showing that the country's engineering exports plunged 66.8 per cent to the UAE and 45 per cent to Saudi Arabia in March due to the West Asia crisis, which has impacted cargo ships movement in international waters.

On the global front: European markets were trading in the red, while Asian markets ended mostly lower amid escalating geopolitical tensions, as US-Iran tensions persisted over control of the Strait of Hormuz.

The BSE Sensex ended at 76681.29, down by 982.71 points or 1.27% after trading in a range of 76403.87 and 77710.82. There were 5 stocks advancing against 25 stocks declining on the index. (Provisional)

The top losing sectoral indices on the BSE were IT down by 5.04%, TECK down by 3.97%, Healthcare down by 1.41%, Telecom down by 1.34% and Realty down by 1.14%, while there were no gaining sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Trent up by 0.73%, Bajaj Finance up by 0.42%, SBI up by 0.36%, HDFC Bank up by 0.13% and Kotak Mahindra Bank up by 0.03%. On the flip side, Infosys down by 7.05%, HCL Technologies down by 5.83%, TCS down by 4.77%, Tech Mahindra down by 4.04% and Sun Pharma down by 3.65% were the top losers. (Provisional)

Meanwhile, amid disruptions caused by the West Asia crisis, India and Qatar have held discussions on ways to boost bilateral trade and strengthen supply chain resilience. Bilateral trade between the two countries stood at $14 billion in 2024-25, and both sides aim to double this figure by 2030. They are also exploring the possibility of negotiating a Comprehensive Economic Partnership Agreement (CEPA).

Commerce and Industry Minister Piyush Goyal held a meeting with Qatari Minister of State for Foreign Trade Affairs Ahmed bin Mohammed Al Sayed, where they discussed ways to further enhance trade and investment ties while strengthening supply chain resilience. Goyal stated that both sides are looking forward to deepening their strategic partnership in the years ahead. Goyal also recently held discussions with trade ministers from other members of the Gulf Cooperation Council (GCC), which include Saudi Arabia, the United Arab Emirates, Bahrain, and Kuwait. India is currently in the process of negotiating a free trade agreement with the GCC.

Meanwhile, the attacks by the US and Israel on Iran have led to severe disruptions in the movement of cargo ships in international waters, particularly affecting routes to West Asian nations. The conflict has created significant challenges for exporters shipping goods to the Gulf region, with which India recorded bilateral trade of $178 billion in 2024-25 ($56.87 billion in exports and $121.67 billion in imports).

The CNX Nifty ended at 23897.95, down by 275.10 points or 1.14% after trading in a range of 23813.65 and 24206.00. There were 13 stocks advancing against 37 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 0.97%, Trent up by 0.91%, Hindalco up by 0.87%, Nestle up by 0.67% and Shriram Finance up by 0.66%. On the flip side, Infosys down by 6.92%, HCL Technologies down by 5.88%, TCS down by 4.79%, Tech Mahindra down by 4.16% and Sun Pharma down by 3.67% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 73.72 points or 0.9% to 8,153.60, UK’s FTSE 100 decreased 60.52 points or 0.58% to 10,396.49 and Germany’s DAX lost 91.75 points or 0.38% to 24,063.70.

Asian markets settled mixed on Friday, with Brent crude holding above $106 per barrel amid persistent US-Iran tensions over the control of the Strait of Hormuz, fuelling worries about inflation, interest rates and economic growth. Japanese shares gained as investors assessed slightly firmer inflation data ahead of next week’s Bank of Japan (BoJ) policy decision. Japan’s core inflation accelerated for the first time in five months, driven by higher energy costs, though it remained below the BoJ’s 2% target. Hong Kong shares rose driven by intense bargain hunting in technology and artificial intelligence-linked semiconductor stocks following DeepSeek's new AI model release. While Indonesian shares fell following the negative cues from Wall Street overnight.