Indian Markets Retreat: Sensex, Nifty Post Sharp Declines,Sensex down 1,282 pts, Nifty below 24,600
India's benchmark stock indices closed significantly lower on Tuesday, relinquishing much of the gain marked in the previous session. The Sensex finished the day down 1,281.68 points, or 1.55%, closing at 81,148.22. The Nifty 50 fell by 346.35 points, or 1.39%, to close at 24,578.35. This drop followed a major rally on Monday, which was labeled as the strongest one-day surge in more than four years.
Driving Factors
The trend of the market turned negative during the afternoon session with indices reversing gains. This was due to weakening local equities and positional unwinding by traders. While the Indian Rupee initially gained in value in response to the India-Pakistan ceasefire and easing US-China tensions, it subsequently gave up ground due to rising crude oil prices, a firm US Dollar, and the overall weakness in local markets. Monday's rebound was driven largely by short-covering and buying by retail investors, suggesting that it may be confined in its upside potential by a lack of sustained institutional activity. Some commentary further suggested that as worries about geopolitical tensions and trade tensions ease, foreign investors could divert their attention to other markets such as China, potentially undermining the relative attractiveness of India. Steep valuations on leading indices and subdued growth in corporate earnings were also cited as reasons for capping near-term market gains.
Sectoral Performance
In the close, there was a mixed scenario across sectors. Capital Goods, Media, PSU Bank, and Pharmaceutical indices showed gains between 1% and 1.6%. The Nifty PSU Bank Index significantly increased 1.56%, ranking as the top-performing sector for the day. Conversely, sectors such as IT, metal, FMCG, Oil & Gas, and Realty lost ground, losing anywhere between 0.9% to 2.5%. The Nifty IT index was hardest hit, decreasing more than 2% and recording the steepest drop among sectors at 2.42%. Auto and FMCG indices also suffered deep slashes.
Top Mover
Among Nifty members, the largest loser was Infosys, which fell 3.58%. Other notable losers on the Nifty were Power Grid Corp, Eternal, TCS, and HCL Technologies. Among IT names individually, Infosys, HCL Tech, and TCS were the notable losers. On the positive side, Bharat Electronics (BEL) was the largest Nifty gainer, rising 4.01%. Other stocks that ended up higher on the Nifty were Jio Financial, Hero MotoCorp, Dr Reddy's Labs, and Sun Pharma.
Rupee Ends Flat After Volatile Session
Indian Rupee was volatile during the day, ending just about even with the US Dollar. It ended at 85.33 per dollar, mildly higher from Friday's close at 85.37. The currency opened firmer at 84.6250 per dollar, bolstered by softened tensions between India and Pakistan as well as the brief removal of tariffs between the US and China. But due to reasons like increasing global crude oil prices and a strong US Dollar, the Rupee lost its previous intraday gains. Experts expect the USDINR spot rate to range between 85 and 86.
Corporate Highlights
Some companies released their quarterly results, with prominent names like Tata Motors, Airtel, Cipla, Hero MotoCorp, and GAIL. Cipla reported a strong 30% year-on-year increase in net profit. Hero Motocorp Q4 PAT also improved. Shares of Paytm fell on reports that Ant Financial was ready to offload a 4% stake through a block deal. Brokerage houses provided pointers, with one company taking a defensive view of the IT and metal industries while preferring financial services and real estate investment trusts (REITs). L&T reported winning big orders from government undertakings. BSE Ltd. shares rose in anticipation of its record date for dividend eligibility.
International Background: Trade Truce and Policy Spillovers
Internationally, markets responded to the US-China trade tariff truce on a temporary basis, where there was a 90-day reversal of duties. The deal helped to assuage fears about the long-drawn-out trade war and helped overall sentiment in the market, though concerns regarding increased supplies of oil moderated crude oil price increases. In addition, US President Donald Trump's executive order to reduce prescription drug costs by pricing them at par with global levels continued to drive the Indian drug industry. Also contributing was India-Pakistan's ceasefire, which initially improved mood and bond market sentiment, in addition to bringing about a dip in Chinese defense stocks that had earlier gone up on increased tension.
Current Market Update
- The Sensex is trading at 81,219.53 down by 1210.37 points or -1.47%.
- The NSE Nifty 50 is trading at 24,632.95 down by -303 points or -1.2%.
Top 5 Gainers in the Market:
- Bharat Electronics Ltd (BEL)
Opening Price: ₹323.70
Current Market Price (LTP): ₹337.25
Percentage Change: +4.48%
BEL led the gainers' pack, climbing 4.48% amid strong buying interest in the defence and PSU space. The stock saw renewed momentum following expectations of higher order inflows and government push for indigenous defence manufacturing. - Jio Financial Services Ltd (JIOFIN)
Opening Price: ₹263.20
Current Market Price (LTP): ₹268.10
Percentage Change: +1.98%
Jio Financial Services gained nearly 2% as investors continued to accumulate the stock ahead of key strategic announcements. Market participants remain optimistic about the company's expansion into digital lending and NBFC services. - Dr. Reddy’s Laboratories (DRREDDY)
Opening Price: ₹1,196.00
Current Market Price (LTP): ₹1,218.60
Percentage Change: +1.92%
Dr. Reddy's advanced 1.92% on the back of positive sentiment in pharma counters. Analysts cited expectations of margin improvement in the US generics segment and strong product pipeline traction as key triggers.
4. Adani Ports and SEZ Ltd (ADANIPORTS)
Opening Price: ₹1,360.60
Current Market Price (LTP): ₹1,378.70
Percentage Change: +1.22%
Adani Ports edged higher by 1.22%, supported by sustained foreign institutional inflows and continued optimism around cargo volume growth. The company recently reported robust operational updates for April.
5.Cipla Ltd (CIPLA)
Opening Price: ₹1,515.00
Current Market Price (LTP): ₹1,526.70
Percentage Change: +1.00%
Cipla rose 1% in early trade, buoyed by investor optimism around new drug approvals and steady revenue growth in the domestic formulations segment. Technical indicators also suggested short-term strength.
Top 5 Losers in the Market:
1.Infosys Ltd (INFY)
Opening Price: ₹1,609.00
Current Market Price (LTP): ₹1,577.70
Percentage Change: -3.02%
Infosys led the losers' pack, falling over 3% as IT stocks faced broad-based selling pressure. Investor sentiment was dented by global macro concerns and continued uncertainty around client spending in key markets like the US and Europe.
2.Power Grid Corporation of India Ltd (POWERGRID)
Opening Price: ₹305.00
Current Market Price (LTP): ₹299.80
Percentage Change: -2.99%
Power Grid slipped nearly 3% amid profit booking after a recent rally. While long-term fundamentals remain intact, investors opted to book gains amid muted cues in the broader utilities sector.
3.HCL Technologies Ltd (HCLTECH)
Opening Price: ₹1,685.00
Current Market Price (LTP): ₹1,628.50
Percentage Change: -2.50%
HCL Tech declined 2.5% as part of the IT sector sell-off. Concerns around margin pressures and sluggish deal wins weighed on the stock despite recent contract announcements.
4.Bharti Airtel Ltd (BHARTIARTL)
Opening Price: ₹1,870.00
Current Market Price (LTP): ₹1,831.50
Percentage Change: -2.10%
Bharti Airtel fell over 2% following mixed global cues and cautious positioning ahead of its earnings announcement. The stock witnessed selling amid concerns on ARPU growth and capex intensity.
5.Eternal Ltd (ETERNAL)
Opening Price: ₹238.00
Current Market Price (LTP): ₹234.51
Percentage Change: -2.08%
Eternal Ltd dropped around 2% in a volatile session. The decline was attributed to profit booking & broader market correction, prompting traders to exit short-term positions.Indian Stock Markets opened with some choppiness on Tuesday, immediately sliding lower and unwinding some gains following Monday's strong rise. The Nifty 50 index briefly held above 24,950 at the open but subsequently fell below 24,800. The BSE Sensex declined by over 500 points in early trade, with IT and bank stocks identified as key drags. This contrasts sharply with Monday's performance, when indices posted their strongest single-day rally in four years, with the Nifty surging a record 917 points to close at 24,925, its highest in seven months.
Escalation on Western Border: India-Pakistan Tensions Mount
Tensions between India and Pakistan continue to dominate investor attention, following cross-border skirmishes late Monday evening near the Rajouri sector. The Indian government has reportedly heightened military preparedness amid threats of retaliation. Diplomatic channels remain silent, further amplifying regional risk.
India to Seek Retaliatory Tariffs Against US Over Steel, Aluminium Duties
India has formally proposed retaliatory tariffs on a range of US products under the World Trade Organisation (WTO) framework, in response to Washington’s safeguard duties on steel and aluminium imports.
According to a WTO filing, New Delhi's proposed suspension of concessions is aimed at offsetting the impact of the US measures, which are estimated to affect $7.6 billion worth of Indian exports. India expects potential tariff collections of up to $1.91 billion, aligning the retaliation with WTO norms.
US Equities Rally Sharply as US-China Trade Tensions Ease
Wall Street surged on Monday following a breakthrough in US-China trade talks over the weekend, with both sides agreeing to a temporary rollback of tariffs. The move helped calm investor nerves over a prolonged trade dispute and its potential drag on global growth.
The Dow Jones Industrial Average soared 1,160 points, or 2.8%, posting its strongest session in over a month. The S&P 500 rallied 3.26%, trimming its year-to-date losses to just 0.6% and extending its rebound from April’s lows to over 20%. Meanwhile, the Nasdaq Composite jumped 4.35%, driven by strong gains in China-exposed tech names including Tesla and Apple.
Monday’s rally marked the best single-day performance for all three major indices since April 9, underscoring renewed investor optimism amid signs of de-escalation in trade tensions between Washington and Beijing.
Dollar Hits One-Month High, Oil Extends Gains as US-China Trade Truce Lifts Market Sentiment
The U.S. dollar climbed to its highest level in over a month on Monday after the United States and China agreed to a 90-day tariff reduction following trade discussions in Geneva, a move that eased fears of further economic escalation between the world’s two largest economies.
The DXY index rose 0.96% to 101.56, bolstered by comments from Treasury Secretary Scott Bessent, who told CNBC the talks had established a framework for ongoing negotiations and mechanisms to avoid future tariff hikes.
In commodities, oil prices advanced to two-week highs, supported by renewed hopes of a resolution to the prolonged trade dispute. Brent crude gained $1.05, or 1.6%, to settle at $64.96 a barrel, while WTI crude rose 93 cents, or 1.5%, to $61.95.
The rebound comes after sharp declines in April, when oil slumped to four-year lows amid concerns over weakening global demand and rising OPEC supply. Monday’s rally in crude, alongside gains in equities and the greenback, reflects broader investor relief as trade tensions appear to be cooling - at least for now.
Gold Eases as Risk Appetite Improves Following US-China Trade Agreement
Gold prices edged lower on Monday, extending losses into Tuesday, as a temporary US-China trade truce lifted risk sentiment and reduced demand for safe-haven assets.
In domestic markets, MCX Gold (June contracts) recovered marginally, settling at ₹92,955 per 10 grams, after slipping earlier in the session. Globally, spot gold fell to its lowest level in over a week, as investors pivoted towards equities following the easing of trade tensions.
The pullback in bullion comes after Washington and Beijing agreed to a 90-day reduction in reciprocal tariffs over the weekend, a move that helped calm markets and boosted appetite for risk assets.
Stocks in Focus
Tata Motors Q4 Earnings on Watchlist as Markets Eye Domestic Profit Trends
Tata Motors is scheduled to report its Q4 FY25 results today, with analysts expecting steady to marginally improved profitability from its domestic passenger and commercial vehicle segments. The quarter is likely to reflect a nuanced mix of input cost pressures, evolving product mix, and broader industry dynamics.
Dr Reddy’s Q4 Misses on Margins Despite Revenue Growth
Dr Reddy’s Laboratories posted a mixed set of Q4 FY25 numbers, with revenue growth remaining healthy but operational performance underwhelming. The drag stemmed from weaker gross margins and tepid domestic sales, raising concerns over near-term profitability.
Tata Steel Swings to Profit Despite Lower Revenues
Tata Steel reported a 112.7% year-on-year surge in consolidated net profit to ₹1,300.8 crore for Q4 FY25, aided by cost efficiencies and operational improvements. However, revenue from operations declined 4.2% YoY to ₹56,218.11 crore, reflecting weaker steel realizations.
Raymond Q4 Net Profit Slumps 40% Despite Revenue Growth
Raymond Ltd reported a 40% year-on-year decline in net profit to ₹137.47 crore for Q4 FY25. Total income rose to ₹601.4 crore, but rising expenses and margin compression weighed on the bottom line.
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