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Key gauges end lower amid geopolitical tension
Apr-25-2025

Indian equity benchmarks ended lower for the second consecutive session on Friday, primarily weighed down by escalating geopolitical tensions between India and Pakistan. After an initial uptick, the markets witnessed a sharp decline in the first half, however, a rebound in select heavyweight stocks helped pare some losses later in the session. 

Some of the important factors in today’s trade:  

Indian firms should avoid re-routing of goods from China to US: The Global Trade Research Initiative (GTRI) has said domestic exporters should not use India as a destination for re-routing goods originating from high-tariff countries like China to the US. 

India-Pakistan trade will come to complete halt: Federation of Indian Export Organisations (FIEO) has said that with Pakistan suspending all trade ties with India, including that routes through third countries, the two-way commerce will now come to a complete halt.  

Rupee falls against Dollar: Indian rupee pared its initial gains and settled for the day lower against the US dollar, amid heightened geopolitical tensions and a negative trend in the domestic markets. 

India, South Africa discuss possibility of settlement of trade in local currency: The commerce ministry said India and South Africa have discussed possibility of settlement of trade in local currency and unified payment linkage system with a view to further strengthen economic ties. 

Global trade sentiment improves: European markets were trading higher with signs of easing Sino-U.S. trade tensions and some upbeat corporate earnings helping underpin investor sentiment. Asian markets settled mostly higher on Friday amid signs the Trump administration is making progress on trade negotiations and that the U.S. Federal Reserve may cut interest rates earlier than expected, if labor and growth data weaken notably. 

Finally, the BSE Sensex fell 588.90 points or 0.74% to 79,212.53, and the CNX Nifty was down by 207.35 points or 0.86% to 24,039.35.    

The BSE Sensex touched high and low of 80,130.66 and 78,605.81 respectively. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 2.44%, while Small cap index was down by 2.56%.

The lone gaining sectoral index on the BSE was IT up by 0.22%, while Utilities down by 2.96%, Realty down by 2.87%, Power down by 2.77%, Telecom down by 2.56% and PSU down by 2.52% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.36%, Tech Mahindra up by 1.06%, Infosys up by 0.60%, Ultratech Cement up by 0.46% and Indusind Bank up by 0.32%. On the flip side, Adani Ports &SEZ down by 3.61%, Axis Bank down by 3.48%, Eternal down by 3.41%, Bajaj Finserv down by 2.85% and Power Grid Corporation down by 2.56% were the top losers.

Meanwhile, Federation of Indian Export Organisations (FIEO) has said that with Pakistan suspending all trade ties with India, including that routes through third countries, the two-way commerce will now come to a complete halt.  

Exporters’ body said following the terror attack in Pahalgam, which killed 26 people, mostly tourists, India took a series of measures including immediate shutting down of the Attari land-transit post, used for movement of certain kinds of goods. Besides, India has announced expulsion of Pakistani military attaches, and suspension of the Indus Water Treaty of 1960. In retaliation, Pakistan announced suspension of 'all trade' with India, including that routes through third countries. 

Commenting on the decision of the neighbouring country, FIEO President S C Ralhan said India's bilateral trade with Pakistan is miniscule and is just 0.06 per cent of India's total trade. He said ‘we have minuscule trade with Pakistan, which is constantly declining’. He noted that during April-January 2024-25, the same was not even $500 million as against the overall trade of over $800 billion in the same period. He added that the trade will now come to a complete standstil affecting supply of some key products to Pakistan, hitting their economy further.

The CNX Nifty traded in a range of 24,365.45 and 23,847.85. There were 9 stocks advancing against 41 stocks declining on the index.   

The top gainers on Nifty were SBI Life Insurance up by 5.15%, Tech Mahindra up by 1.02%, TCS up by 0.95%, Infosys up by 0.58% and Ultratech Cement up by 0.25%. On the flip side, Shriram Finance down by 8.13%, Adani Enterprises down by 3.95%, Adani Ports &SEZ down by 3.79%, Trent down by 3.75% and Eternal down by 3.67% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 5.68 points or 0.07% to 8,413.12, France’s CAC rose 56.75 points or 0.75% to 7,559.53 and Germany’s DAX gained 176.09 points or 0.79% to 22,240.60.

Asian markets settled mostly higher on Friday tracking Wall Street gains overnight amid signs that the US is making progress on trade negotiations and that the Fed might cut interest rates earlier than expected if labor and growth data weaken notably. Japanese shares gained as the government unveiled emergency economic measures to counter the impact of US tariffs, ahead of a second round of bilateral trade talks with the US to be held next week. Meanwhile, the Japanese yen declined after Tokyo’s Core Inflation Jumped to 3.4% in April, the highest in two years. However, Chinese shares declined as China denied the existence of negotiations on a deal with the US and demanded that the US revoke all unilateral tariffs.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,295.06

-2.23

-0.07

Hang Seng

21,980.74

70.98

0.32

Jakarta Composite

6,678.92

65.44

0.98

KLSE Composite

1,509.20

2.68

0.18

Nikkei 225

35,705.74

666.59

1.87

Straits Times

3,823.78

-8.14

-0.21

KOSPI Composite

2,546.30

23.97

0.94

Taiwan Weighted

19,872.73

393.92

1.98
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