Indian equity markets came off intraday low points during early afternoon session, but remained lower on the back of heavy selling at IT and TECK counters, despite positive cues from other Asian markets. Traders assessed mixed signals over the status of U.S.-Iran peace talks and awaited upcoming RBI rate decision on Friday, along with its communication on the rupee for directional cues. Investors were also cautious as think tank Global Trade Research Initiative (GTRI) has said that India may get limited benefits from US tariffs reduction on selected industrial and agricultural equipment containing steel, aluminium or copper from 25% to 15%.
On the global front, Asian markets were trading mostly higher, after China's service sector grew at a faster pace in May as total activity and new business expanded at the fastest rates in three months. The RatingDog services Purchasing Managers' Index rose to 54.4 in May from 52.6 in the previous month. The score has remained above the 50.0 neutral mark since January 2023, signaling expansion in the service sector.
The BSE Sensex is currently trading at 74099.89, down by 549.95 points or 0.74% after trading in a range of 73492.60 and 74507.73. There were 10 stocks advancing against 20 stocks declining on the index.
The few gaining sectoral indices on the BSE were Telecom up by 1.25%, Auto up by 0.01% and Power up by 0.01%, while IT down by 4.88%, TECK down by 3.07%, Realty down by 1.90%, Consumer Durables down by 1.01% and FMCG down by 0.92% were the top losing indices on BSE.
The top gainers on the Sensex were Power Grid up by 1.13%, Maruti Suzuki up by 1.03%, Trent up by 0.99%, Mahindra & Mahindra up by 0.77% and ICICI Bank up by 0.65%. On the flip side, TCS down by 8.46%, Tech Mahindra down by 5.74%, HCL Tech. down by 4.59%, Infosys down by 3.86% and ITC down by 1.94% were the top losers.
Meanwhile, think tank Global Trade Research Initiative (GTRI) has said that India may get limited benefits from US tariffs reduction on selected industrial and agricultural equipment containing steel, aluminium or copper from 25% to 15%. It noted that exporters of engineering goods, HVAC equipment, electrical equipment and agricultural machinery may gain from the reduced 15% tariff, while some manufacturers could potentially qualify for the new 10% by using US-origin metals. The lower rate will apply from June 8, 2026, through December 31, 2027.
The products covered under this tariff reduction include heating and air-conditioning equipment, bulldozers, forklifts, harvesters, agricultural machinery and certain electrical grid equipment. GTRI said that the new 10% tariff category has been introduced for imported products manufactured using at least 85% U.S.-origin steel, aluminium or copper by weight. It added that, India imported about $2.9 billion worth of steel, aluminium, copper and related products from the United States, creating some opportunity for Indian manufacturers to use U.S.-origin inputs and qualify for the lower tariff when exporting finished products back to the US.
Further, the products containing 15% or less steel, aluminium or copper by weight will continue to remain exempt from Section 232 tariffs. However, GTRI pointed that the core metal tariffs remain unchanged with most imported steel, aluminium and copper articles continuing to face 50% tariff, while many downstream and derivative products made from these metals will remain subject to a 25% duty.
The CNX Nifty is currently trading at 23289.90, down by 193.65 points or 0.82% after trading in a range of 23151.50 and 23447.65. There were 13 stocks advancing against 37 stocks declining on the index.
The top gainers on Nifty were Apollo Hospital up by 2.59%, Max Healthcare Inst up by 1.44%, Power Grid up by 1.12%, Maruti Suzuki up by 0.93% and Trent up by 0.90%. On the flip side, TCS down by 8.42%, Tech Mahindra down by 5.78%, HCL Tech. down by 4.59%, Infosys down by 3.84% and Wipro down by 3.13% were the top losers.
Asian markets were trading mostly higher; Shanghai Composite strengthened 8.87 points or 0.22% to 4,083.97, Taiwan Weighted added 901.85 points or 1.94% to 46,459.16, Nikkei 225 surged 1983.76 points or 2.89% to 68,718.00 and Straits Times rose 37.18 points or 0.73% to 5,134.60, while Hang Seng declined 447.32 points or 1.72% to 25,591.00 and Jakarta Composite plunged 307.66 points or 4.97% to 5,887.77.
