Indian Equities Succumb to Selling Pressure Amid Geopolitical Tensions, Sensex slips 412 points, Nifty 141 points
Indian benchmark indices concluded Thursday's trading session notably lower, shedding early gains as investor sentiment soured. The Sensex finished 412 points down at 80,334.81, while the Nifty slipped below the 24,300 mark, closing at 24,273.80, a decline of 140.60 points. This downturn was largely attributed to growing concerns over escalating tensions between India and Pakistan.
Geopolitical Undercurrents Drive Volatility
The market's volatility was significantly influenced by developments related to the India-Pakistan border situation. News of India's strikes on nine terror camps across the border and the Line of Control (LoC) and reports of the government confirming strikes on Lahore's air defence systems injected caution into the market. Further reports of drones being shot down in key Pakistani cities like Karachi and Lahore intensified selling pressure. The Nifty volatility index (India VIX) spiked, reflecting increased market fear amidst ongoing border tensions. It jumped 12% after confirmation of strikes on Lahore's air defence systems and was up nearly 4.5% later in the day.
The geopolitical climate also impacted other asset classes. The Indian rupee weakened significantly, falling to ₹85.59 per dollar, down 0.8%, amid heightened tensions with Pakistan. India's 10-year bond yield initially dropped on perceived limited risk of escalation but later rose 7 basis points to 6.3807% following military escalations. The Pakistan Stock Exchange also saw trading paused for an hour after its benchmark index plunged over 7% due to intense selling pressure triggered by reports of drones being shot down. In contrast, Chinese defence stocks reportedly surged amid the India-Pakistan tensions following India's Operation Sindoor, with AVIC Chengdu Aircraft seeing a 36% rise over two days.
Cybersecurity risks linked to Pakistan-based groups also prompted the BSE to issue an advisory urging market participants to strengthen their systems against various threats.
Corporate Earnings and Stock-Specific Movements
A slew of quarterly earnings announcements also influenced individual stock performances.
Asian Paints reported a sharp 45% year-on-year drop in Q4 net profit to ₹692 crore, with revenue falling 4% due to weak urban demand, leading to its stock being in the spotlight.
Tata Chemicals saw its Q4 net loss narrow significantly to ₹56 crore, driving its shares up 2%.
Voltas shares declined over 2.5% after its Q4 net profit doubled to ₹241 crore.
Dabur shares dropped 3% following a lacklustre Q4 performance.
Canara Bank reported a Q4 net profit of ₹5,003 crore, exceeding estimates and showing a 33.2% year-on-year increase, despite a marginal decline in net interest income. The bank recommended a dividend of ₹4 per share.
Bharat Forge's Q4 results showed a decline in revenue, PAT, and EBITDA year-on-year, while Bharat Seats shares surged 18% following strong Q4 results with PAT up 42.5%.
Sonata Software reported a marginal dip in Q4 net profit despite a 19.4% jump in revenue.
Symphony's shares rallied 6.26% post strong Q4 results with a consolidated net profit of ₹79 crore.
Coal India shares declined marginally by 0.013% after posting a 12% year-on-year increase in Q4 net profit to ₹9,593 crore.
Among notable stock movements not solely tied to Q4 results, Tata Motors shares surged 9% over two days, amid optimism around the proposed India-UK trade pact, the company’s demerger plan, and other positive cues.
Uno Minda declined by 1.24% on news of a ₹200 crore investment for capacity expansion.
Broader Market Factors
Globally, the US Federal Reserve kept interest rates steady at 4.25%-4.5% during its May 2025 meeting, citing increasing risks of inflation and unemployment. Oil prices edged up on hopes of potential breakthroughs in upcoming US-China trade talks. Developments in the US-India trade agreement are expected to provide short-term support for Indian markets, particularly export-oriented industries.
Regulatory news included SEBI's revision of disclosure guidelines for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Separately, India’s largest stock exchange, the NSE, reportedly sought government intervention regarding its long-pending IPO approval from SEBI.
The day's trading demonstrated that while broader global cues and corporate performance remain influential, geopolitical tensions exerted significant pressure, leading to volatility and broad-based selling towards the close. Retail investors reportedly showed a more cautious approach but also used the market weakness as an opportunity to accumulate some beaten-down stocks.
Current Market Update
- The Sensex is trading at 80,789.65 up by 42.27 points or 0.053%.
- The NSE Nifty 50 is trading at 24,332.55 down by -1.65 points or -0.01%.
Top 5 Gainers in the Market
- Opening Price: ₹700.00
- Current Market Price (LTP): ₹698.30
- Percentage Change: +2.65%
Tata Motors led the gainers, climbing 2.65%. The rise follows robust April vehicle sales and renewed optimism about the company’s electric vehicle strategy. Analysts have also highlighted strong demand in both domestic and export markets, supporting the positive momentum.
- Opening Price: ₹3,349.90
- Current Market Price (LTP): ₹3,400.60
- Percentage Change: +1.85%
Titan shares advanced 1.85% after the company posted double-digit growth in its jewellery and watches divisions for April. Recent festive demand and sustained market share gains have further boosted investor sentiment.
- Opening Price: ₹1,340.00
- Current Market Price (LTP): ₹1,361.50
- Percentage Change: +1.74%
Adani Ports gained 1.74% as the company reported strong cargo volume growth and positive management guidance. The expansion of logistics operations and resilient performance have underpinned the rally.
- Opening Price: ₹2,099.00
- Current Market Price (LTP): ₹2,122.30
- Percentage Change: +1.31%
Kotak Mahindra Bank rose 1.31% after reporting healthy loan growth and stable asset quality in its latest quarterly update. The bank’s digital initiatives and steady net interest margins have contributed to improved investor confidence.
- Opening Price: ₹3,310.10
- Current Market Price (LTP): ₹3,357.00
- Percentage Change: +1.08%
L&T advanced 1.08% on the back of new infrastructure order wins and a robust order book. The government’s ongoing focus on infrastructure development and capital expenditure has further supported the stock’s performance.
Top 5 Losers in the Market
Tata Consumer Products (TATACONSUM)
- Opening Price: ₹1,136.00
- Current Market Price (LTP): ₹1,116.70
- Percentage Change: -2.56%
Tata Consumer Products led the market’s losses, falling 2.56%. The decline follows concerns over margin pressures due to rising raw material costs and subdued rural demand.
Eternal (ETERNAL)
- Opening Price: ₹235.25
- Current Market Price (LTP): ₹231.30
- Percentage Change: -2.36%
Eternal shares dropped 2.36% after the company issued a cautious revenue outlook for the coming quarter. Management flagged slower-than-expected demand recovery in key segments, leading to a negative reaction from investors.
Maruti Suzuki (MARUTI)
- Opening Price: ₹12,560.00
- Current Market Price (LTP): ₹12,445.00
- Percentage Change: -1.49%
Maruti Suzuki declined 1.49% on the back of weaker April sales figures and concerns about rising input costs. Analysts also cited intensifying competition in the passenger vehicle segment as a factor weighing on the stock.
Cipla (CIPLA)
- Opening Price: ₹1,500.00
- Current Market Price (LTP): ₹1,487.10
- Percentage Change: -1.44%
Cipla shares fell 1.44%, with recent news highlighting regulatory headwinds in the US market and a cautious management outlook on export growth. The pharmaceutical sector has also seen profit booking after a recent rally.
- Opening Price: ₹429.00
- Current Market Price (LTP): ₹425.25
- Percentage Change: -1.44%
ITC lost 1.44% as investors reacted to concerns over slower growth in its FMCG and cigarette businesses. Recent brokerage reports have flagged margin pressures and a muted consumption environment as key risks.
Market Open
Indian equity markets opened on a cautious note today under the influence of mixed global cues and rising geopolitical tensions.
BSE Sensex: Opened at 80,910.00, higher by 165.56 points from the previous close.
BizFinance News
NSE Nifty 50: Opened at 24,430.00, higher by 34.80 points.
The modest gains were in line with GIFT Nifty futures, which showed a flat to marginally positive
start.
Factors Driving Market Sentiment
Operation Sindoor: Geopolitical Tensions RiseIndia's recent military strike, code-named 'Operation Sindoor,' on terror bases in Pakistan and Pakistan-occupied Kashmir has increased tensions between the two countries. Pakistan's government has threatened retaliation, with fears of further escalations having a bearing on market stability.
US Federal Reserve Keeps Interest Rates:The US Federal Reserve decided to leave interest rates steady, referring to ongoing inflationary pressures and labour market uncertainties. Fed Chair Jerome Powell made it clear that rate cuts can be considered but would be contingent on upcoming economic data, bringing a note of caution to market sentiment worldwide.
Global Market Overview :
Asian Markets: Trading was muted in Asian markets. Japan's Nikkei 225 increased 0.28%, and South Korea's Kospi rose 0.36%.
US Markets: Wall Street traded higher, with the Dow Jones Industrial Average increasing 0.70%, S&P 500 up 0.43%, and the Nasdaq Composite rising by 0.27%, after the Fed left rates unchanged.
Commodities and Currency
Gold: Prices hit $3,384.99 per ounce as investors turned to safe-haven assets in the face of geopolitical tensions.
Crude Oil: Brent crude held steady at $61.12 per barrel, while WTI crude rose slightly to $58.12 per barrel.
Indian Rupee: The rupee gained 0.25%, closing at ₹85.25 against the US dollar on April 29.
Stocks in Focus
Coal India Ltd: Registered a 12% quarter-on-quarter improvement in net profit to ₹9,593 crore for Q4 FY25 despite a 1% decrease in revenue.
Dabur India Ltd: Reported an 8.3% fall in net profit to ₹320 crore as revenue grew only marginally by ₹2,830 crore, indicating problems with urban demand.
Voltas Ltd: Experienced its net profit increasing more than twice to ₹236 crore and issued a ₹7 per share dividend for FY25.
Punjab National Bank: Reported a 51.7% jump in net profit to ₹4,567 crore, with gross NPAs coming down significantly.
Larsen & Toubro Ltd, Britannia Industries Ltd, Asian Paints Ltd, Canara Bank, Biocon Ltd, Bharat Forge Ltd, Union Bank of India, Zee Entertainment Enterprises Ltd, Sula Vineyards Ltd will be reporting their Q4 FY25 results today, which may impact their stock price movement.
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