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Markets trade flat in early deals
Apr-30-2025

Indian equity markets have made a positive start and are now trading flat in early morning deals on Wednesday amid mixed cues from other Asian markets. Traders were cautious as government survey projected that private sector capital expenditure (capex) is expected to decline by around 25% to Rs 4.88 lakh crore in FY26, down from Rs 6.56 lakh crore in FY25. Further, rising geopolitical tensions between India and Pakistan weighed heavily on investor sentiment. The decline followed the recent terror attack in Jammu and Kashmir’s Pahalgam and reports of ceasefire violations at the border. However, downside remained capped as US Treasury Secretary Scott Bessent said that the US is very close on a trade deal with India, noting that it is much easier to negotiate with India because of the high tariffs and talks with the country are moving well. 

On the global front, Asian markets were trading mixed as traders parsed a slew of key economic data in the region. The Bank of Japan kickstarts its policy meeting on Wednesday, and is widely expected to hold rates at 0.5% when the meeting concludes on Thursday. Back home, on the BSE sectoral front, traders were seen pilling up positions in Realty, Healthcare, Oil & Gas, Utilities and FMCG, while selling was witnessed in Consumer Durables, Industrials, PSU, Bankex and Capital Goods. 

The BSE Sensex is currently trading at 80241.07, down by 47.31 points or 0.06% after trading in a range of 80055.87 and 80372.95. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.13%, while Small cap index down by 0.47%.

The top gaining sectoral indices on the BSE were Realty up by 2.35%, Healthcare up by 0.75%, Oil & Gas up by 0.60%, Utilities up by 0.50% and FMCG up by 0.40%, while Consumer Durables down by 0.46%, Industrials down by 0.37%, PSU down by 0.31%, Bankex down by 0.27% and Capital Goods down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corp up by 1.65%, Sun Pharma up by 0.95%, HDFC Bank up by 0.90%, NTPC up by 0.83% and Mahindra & Mahindra up by 0.72%. On the flip side, Bajaj Finserv down by 6.26%, Bajaj Finance down by 5.27%, Tata Motors down by 2.47%, SBI down by 1.51% and Ultratech Cement down by 0.84% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) has said that reciprocal tariffs will exacerbate stress for medium, small and micro enterprises (MSMEs) but mid-sized corporates have a greater cushion against unanticipated financial shocks. With the worsening of operating conditions owing to the escalation of tariff war in April 2025, It expects MSMEs to turn more vulnerable, especially in the sectors where the impact of tariff war is negative.

As of March 31, 2024, its analysis suggested that 23 per cent of MSMEs remained stressed compared to 11 per cent for MCs (mid-corporates). MCs are better positioned than pre-COVID levels to manage business cycles. A study of 1,898 listed and unlisted MSMEs and 1,055 MCs highlights that MCs have a greater cushion against unanticipated financial shocks than MSMEs, given their healthy financial metrics.

Neermoy Shah, Associate Director - Emerging Corporates at Ind-Ra, said ‘Capex intensity is usually low as MSMEs grapple more with working capital issues than MCs, and need adequate finance at competitive rates to manage those. Additionally, MSMEs - unlike MCs - are largely promoter-driven entities and lack a capable second line of management who have the knowledge and skill sets to bargain with lenders/suppliers/customers’. Besides, Ind-Ra opined that the reciprocal tariffs will exacerbate stress for MSMEs, with revenue below Rs 250 crore and investment in plant and machinery below Rs 5 crore as of March 31, 2024, with moderate to high intensity.

The CNX Nifty is currently trading at 24364.65, up by 28.70 points or 0.12% after trading in a range of 24268.80 and 24365.65. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 1.78%, Cipla up by 1.71%, Dr. Reddy's Lab up by 1.61%, HDFC Life Insurance up by 1.53% and HDFC Bank up by 1.19%. On the flip side, Bajaj Finserv down by 5.89%, Bajaj Finance down by 4.64%, Trent down by 3.74%, Tata Motors down by 2.35% and SBI down by 1.46% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 49.81 points or 0.23% to 22,057.92, Jakarta Composite gained 32.94 points or 0.49% to 6,782.02, Straits Times rose 15.81 points or 0.41% to 3,820.99 and Nikkei 225 surged 47.05 points or 0.13% to 35,887.04. However, KOSPI dropped 12.48 points or 0.49% to 2,552.94, Taiwan Weighted lost 30.07 points or 0.15% to 20,202.56 and Shanghai Composite weakened 2.68 points or 0.08% to 3,283.97. 
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