Market Watch: Indian Benchmarks Settle Lower Amid Mixed Global Cues, Sensex closes 200 points lower, Nifty declines by 42.3 points

Indian benchmark indices concluded Friday's session on a subdued note, pressured by declines in key sectors and heavyweight stocks, despite earlier signs of optimism fueled by positive global cues and ongoing trade negotiations. The Nifty 50 settled below the 25,050 mark, registering a decline of 42.3 points to close at 25,019.80. Similarly, the Sensex settled 200 points lower at 82,330.59.

Opening Bell and Key Movers

The trading day began on a weaker trajectory for both the Sensex and Nifty, primarily weighed down by losses in companies such as Bharti Airtel, State Bank of India (SBI), and various IT stocks. Among the Sensex constituents, Bharti Airtel, SBI, IndusInd Bank, Power Grid, Infosys, and HCL Tech emerged as the top losers, with shares slipping by up to 2.7%. Conversely, NTPC, Adani Ports, Eicher Motors, Bajaj Finance, and Bajaj Finserv opened with gains. Bharti Airtel shares were particularly in focus due to plans by Singapore Telecommunications (Singtel) to potentially sell a 1.3% stake via a block deal, estimated to be worth around ₹8,500 crore.

Notable Company and IPO Updates

Several companies featured prominently with their quarterly results and corporate actions. PB Fintech shares saw a jump after reporting a significant 185% year-on-year surge in consolidated net profit for Q4FY25. 

RVNL shares rallied 9.18% following a ₹160 crore contract win from Central Railway. 

Ircon International also saw its shares rally by 7% after securing a ₹51.6 crore order win from North Western Railway. JSW Energy's shares were in focus after a 16% year-on-year increase in Q4 profit and the announcement of a ₹10,000 crore fundraising plan. 

Hyundai Motor reported a 3.7% drop in consolidated net profit for Q4FY25, coming in at ₹1,614 crore. 

BHEL's net profit rose 3% to ₹504.45 crore in Q4, with revenue seeing an 8.87% jump. 

In the IPO space, Borana Weaves is set to open its ₹144.89 crore IPO from May 20-22, with a GMP signalling a potential 27% listing gain. Dar Credit and Capital's ₹25.66 crore SME IPO will open on May 21, with GMP hinting at a 20% listing pop. Belrise Industries' larger ₹2,150 crore IPO is also scheduled to open from May 21-23.

Fund Flows and Investment Insights

Six Asset Management Companies (AMCs) experienced a surge of over ₹30,000 crore in Assets Under Management (AUM) in April, led by HDFC MF, SBI MF, and ICICI Prudential MF. AUM from B30 cities outpaced growth in T30 cities over five years. Domestic mutual funds, supported by Systematic Investment Plans (SIPs), saw net inflows of ₹5.9 lakh crore over 12 months, counterbalancing Foreign Portfolio Investor (FPI) outflows of ₹3.6 lakh crore. Mutual funds notably cut their stake in eight Adani group firms in April, including significant reductions in Adani Enterprises and Adani Green.

Global Market Context

Asian equities showed mixed movements, with Japan's Nikkei closing flat, buoyed by corporate outlook optimism, while Chinese and Hong Kong stocks fell due to renewed U.S.-China tech tensions and weak earnings. European shares traded higher after a mixed session in Asia. US stocks saw a mixed close on Thursday. The S&P 500 had reportedly rebounded from its April decline, with investors optimistic about potential negotiations to ease tariffs. Traders were pricing in two Federal Reserve rate cuts for the year. Oil prices dipped amid speculation of a potential US-Iran deal increasing supply. Bitcoin crossed $104,000, driven by US rate cut hopes and institutional buying.

Overall, the trading session reflected a market navigating mixed domestic and global signals, leading to a lower close for key Indian benchmarks

Current Market Update

• The Sensex is trading at 82,207.65 down by -323.09 points or -0.39%.
• The NSE Nifty 50 is trading at 24,970.65 up by -91.00 points or -0.37%.

Top 5 Gainers in the Market

Bharat Electronics Ltd (BEL)

• Opening Price: ₹351.60
• Current Market Price (LTP): ₹363.90
• Percentage Change: +3.85%
  BEL led the market, surging 3.85%. The rally is attributed to recent defence contract wins and expectations of increased government spending in the sector. Analysts have also highlighted BEL’s robust order book and operational efficiency as key drivers.

Eicher Motors (EICHERMOT)

• Opening Price: ₹5,504.00
• Current Market Price (LTP): ₹5,537.50
• Percentage Change: +1.31%
  Eicher Motors gained 1.31%, supported by strong Royal Enfield sales and positive management commentary on export growth. The company’s focus on premium motorcycle launches and expanding its international footprint has attracted investor interest.

Bajaj Auto (BAJAJ-AUTO)

• Opening Price: ₹8,350.00
• Current Market Price (LTP): ₹8,415.00
• Percentage Change: +1.07%
  Bajaj Auto advanced 1.07% following robust monthly sales data and a favourable outlook for export markets. Recent news also points to the company’s successful new product launches and strong rural demand.

NTPC

• Opening Price: ₹343.00
• Current Market Price (LTP): ₹345.40
• Percentage Change: +1.01%
  NTPC rose 1.01% as the company benefited from higher power demand and supportive government policies for the energy sector. The stock has also been bolstered by expectations of stable earnings growth.

Hindustan Unilever (HINDUNILVR)

• Opening Price: ₹2,360.00
• Current Market Price (LTP): ₹2,376.30
• Percentage Change: +0.89%
  Hindustan Unilever gained 0.89% on the back of strong quarterly results and positive commentary on rural market recovery. The company’s premiumisation strategy and expansion in new product categories have supported revenue growth.

Top 5 Losers in the Market

Bharti Airtel (BHARTIARTL)

• Opening Price: ₹1,834.00
• Current Market Price (LTP): ₹1,816.00
• Percentage Change: -2.74%
  Bharti Airtel led the market losses, declining 2.74%. The drop is attributed to profit booking after a recent rally and investor caution ahead of the company’s upcoming earnings. Analysts have also flagged concerns over rising competition in the telecom sector and potential margin pressures.

IndusInd Bank (INDUSINDBK)

• Opening Price: ₹750.00
• Current Market Price (LTP): ₹759.85
• Percentage Change: -2.65%
  IndusInd Bank fell 2.65%, pressured by concerns over asset quality and an uptick in slippages reported in its latest quarterly update. The broader banking sector has also witnessed selling amid mixed cues from global markets.

Shriram Finance (SHRIRAMFIN)

• Opening Price: ₹674.00
• Current Market Price (LTP): ₹661.75
• Percentage Change: -1.93%
  Shriram Finance dropped 1.93% following a cautious outlook on loan growth and asset quality. Recent management commentary has highlighted challenges in the commercial vehicle financing segment, contributing to the negative sentiment.

HCL Technologies (HCLTECH)

• Opening Price: ₹1,691.90
• Current Market Price (LTP): ₹1,668.20
• Percentage Change: -1.64%
  HCL Technologies declined 1.64% as IT stocks faced pressure from weak global cues and concerns over delayed client spending. Analysts have also cited a cautious outlook on revenue growth in the near term.

Infosys (INFY)

• Opening Price: ₹1,612.60
• Current Market Price (LTP): ₹1,586.70

Percentage Change: -1.60%
Infosys lost 1.60%, with the decline linked to profit booking and persistent worries about global IT demand softness. Recent sector reports point to delays in decision-making by major clients and a subdued outlook for discretionary tech spending.Indian benchmark stocks are trading with a conservative note in initial Friday trade, after a big rally in the last session. The Sensex fell more than 100 points in the pre-opening session, opening lower. The Nifty too had opened lower and is now testing the 25,000 level, trading at 25,025.95, down 36.15 points. This measured beginning is in contrast to the hint from the GIFT Nifty (previously SGX Nifty), which had traded higher by 96.50 points at 25,175 earlier, indicating a potentially upbeat beginning for Dalal Street.

Yesterday's session saw a sharp bounce in Indian equities. Nifty witnessed a sharp 550-point rally from its day's low, finally closing above the 25,000 levels for the first time in seven months. This bullish market activity came in the face of a "near consensus view" that foreign institutional investors (FIIs) would taper purchases or even sell, perhaps favouring lower-priced Chinese shares in the backdrop of US-China trade negotiation prospects.

FIIs, however, took an aggressive, contrarian action, purchasing shares worth ₹5393 crores. This buying was a surprise to most market participants and helped trigger Thursday's steep upward movement.

Optimism for possible trade deals has also been mentioned as one factor. The market jumped more than 1.5% on Thursday following optimism concerning a US-India trade agreement, propelled by better investor sentiment after U.S. President Donald Trump said India had agreed to scrap all tariffs on U.S. imports. Aside from that, easing geopolitical tensions are mentioned as potentially assisting in maintaining recent gains, though interest in defence stocks has also jumped in the face of India-Pakistan military conflict.

Global Backdrop:

Outside of individual shares, wider market gauges present a mixed world picture. Asian shares generally tracked Wall Street higher, although S&P 500 futures and Hang Seng futures dipped slightly this morning. Australia's S&P/ASX 200 increased, while Japan's Topix declined. Wall Street closed mixed on Thursday, with the S&P 500 having recovered from its April fall.

Currency markets opened higher for the Indian Rupee against the US dollar. The supremacy of the US dollar as global reserve currency is seen as unlikely to fade in the near future, even as the dollar's fortunes followed Treasury yields lower on Thursday following benign US data.

Oil prices dropped by over 2% on Thursday on speculation that there could be a US-Iran nuclear deal to boost world supply. They remain around today's levels after those recent losses 

Strong demand was seen after the Reserve Bank of India's open market operations for bond purchase on Thursday, with bids approaching three times the notified quantity.

Top Stocks in Focus

Bharti Airtel shares have fallen by almost 3%. This comes after a reported block deal where as much as an estimated 1.3% of the company's equity was sold. Singapore Telecommunications (Singtel) is said to be selling almost 5 crore shares, a transaction estimated to be valued at around .

₹8,500 crore (about $1 billion).

PB Fintech, Policybazaar's parent firm, saw its stock rise around 2%. This follows a modest 185% year-on-year rise in consolidated net profit by the company in the fourth quarter.

Akzo Nobel India stock rose 6% after reports that JSW Paints has initiated exclusive buyout talks for the company. JSW Paints is said to have led the pack in the race to acquire the company.

LIC Housing Finance shares fell 2% even though the company reported a 25% year-on-year increase in fourth-quarter profit.

RVNL shares bounced back 3% after winning a ₹160 crore contract from Central Railway.

JSW Energy is in focus after registering a 16% year-on-year increase in consolidated net profit in Q4FY25 and unveiling a ₹10,000 crore fundraising plan.

IndusInd Bank finds itself in the spotlight after revealing that a whistleblower had raised questions regarding entries under "other assets" and "other liabilities" on the bank's books. The bank's audit committee has examined these transactions. The bank had released clarifications on Thursday in connection with a news report on suspected accounting improprieties

The Sajjan Jindal Family Trust is said to be considering selling up to ₹1,200 crore of JSW Infrastructure shares through a block deal to comply with minimum public shareholding (MPS) requirements.

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