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Benchmarks trade lacklustre amid S&P Global Ratings lowers US GDP forecast
May-02-2025

Indian equity benchmarks were trading lacklustre in late afternoon session with Sensex managing to hold its ground, while Nifty traded in red. The markets were trading mixed as the traders remained cautious after S&P Global Ratings lowered the US GDP forecast for 2025, sharply by 50 basis points to 1.5 per cent, while raising its inflation forecast. For 2026, the US growth projection has been lowered by 20 basis points to 1.7 per cent. However, downside remained capped as investors remain optimistic amid India's manufacturing sector growth improved in the month of April. Besides, India Ratings and Research (Ind-Ra) has said that India Meteorological Department’s (IMD) prediction of slightly above-than-normal monsoon in 2025 would push farm sector growth which along with monetary easing will help India withstand the adverse impact of reciprocal tariffs, lending additional support to the markets.

On the global front, Asian equity markets are trading mostly in green after China said it's evaluating the possibility of trade talks with the United States, raising hopes of trade war de-escalation. European equity markets were trading higher.

The BSE Sensex is currently trading at 80362.69, up by 120.45 points or 0.15% after trading in a range of 80168.59 and 81177.93. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index soared by 0.56%, while Small cap index was down by 0.14%.

The few gaining sectoral indices on the BSE were Oil & Gas up by 0.44%, Energy up by 0.30% and IT up by 0.26%, while Telecom down by 2.03%, Consumer Durables down by 1.60%, Utilities down by 1.16%, Power down by 1.14% and Metal down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 3.82%, Bajaj Finance up by 2.82%, Indusind Bank up by 1.90%, Maruti Suzuki up by 1.31% and SBI up by 0.92%. On the flip side, Nestle down by 2.01%, NTPC down by 1.86%, Power Grid Corporation of India down by 1.26%, Kotak Mahindra Bank down by 1.05% and Bharti Airtel down by 0.98% were the top losers.

Meanwhile, India's manufacturing sector growth improved in the month of April, with output increasing at the fastest pace since June 2024 on the back of another strong expansion in order books. Besides, total sales were supported by the second-fastest upturn in international orders since March 2011. This positive trend was accompanied by notable rises in employment and purchasing activity. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.2 in April as against 58.1 in March.

The report further noted that the substantial improvement in order book volumes occurred despite a marked increase in prices charged for Indian goods. The overall rate of inflation was the highest seen in 11-and-half years. Input prices rose at the fastest pace in four months during April, with firms mentioning higher building maintenance, labour, leather, paper, rubber, steel and transportation costs. That said, the rate of inflation was moderate and below that seen for selling charges. The strength of new order inflows also led to another accumulation of outstanding business. Although slight, the rate of increase was at a 15-month high.

Further, manufacturers continued to enhance their staffing levels in April to meet growing output requirements. Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock building initiatives. Input holdings increased to the greatest extent since August 2024. Conversely, post-production inventories fell at the quickest pace in nearly three-and-a-half years.

The CNX Nifty is currently trading at 24299.15, down by 35.05 points or 0.14% after trading in a range of 24238.50 and 24589.15. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 3.82%, Bajaj Finance up by 2.62%, Indusind Bank up by 1.85%, Maruti Suzuki up by 1.33% and Reliance Industries up by 0.91%. On the flip side, JSW Steel down by 6.22%, Bajaj Auto down by 2.67%, Hero MotoCorp down by 2.41%, Eicher Motors down by 2.29% and Nestle down by 2.28% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 385.27 points or 1.71% to 22,504.68, Jakarta Composite gained 38.02 points or 0.56% to 6,804.82, KOSPI increased 3.18 points or 0.12% to 2,559.79, Nikkei 225 surged 378.39 points or 1.03% to 36,830.69, Taiwan Weighted added 552.61 points or 2.66% to 20,787.64 and Straits Times rose 3.65 points or 0.1% to 3,836.16.

European markets were trading higher; UK’s FTSE 100 increased 65.18 points or 0.77% to 8,561.98, France’s CAC rose 105.4 points or 1.39% to 7,699.27 and Germany’s DAX gained 342.63 points or 1.52% to 22,839.61.
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