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Key gauges end marginally higher amid volatility
May-07-2025

Indian equity benchmarks remained volatile but managed to close slightly in green on Wednesday as sentiment was underpinned by strong corporate earnings and optimism following the India-UK Free Trade Agreement. However, gains were limited as rising tensions between India and Pakistan after India's Armed Forces conducted Operation Sindoor, targeting terrorist infrastructure in Pakistan, weighed on market sentiments.

Some of the important factors in today’s trade: 

Sustained FII buying: Provisional data from the National Stock Exchange showed that foreign portfolio investors stayed net buyers of Indian equities for the 14th straight session on Tuesday, as they bought stocks worth Rs 3,794.52 crore. 

Govt’s policies tailored in way to support manufacturing and service sector growth: Finance Minister Nirmala Sitharaman has said that government's policies have been tailored in a way to support manufacturing and the service sector growth. She said about 60 per cent of India's GDP is contributed by the services sector.   

Rupee falls against Dollar on India-Pakistan Tensions: Indian rupee depreciated sharply against the US dollar, as heightened cross-border tensions following India's military strikes against terrorist camps in Pakistan and Pakistan-Occupied Kashmir weighed on the domestic currency.

India to retaliate if EU imposes carbon tax: Commerce and Industry Minister Piyush Goyal has said that India would impose retaliatory duties if the European Union (EU) goes ahead with its plan to levy a carbon tax on Indian products. Under the EU’s Carbon Border Adjustment Mechanism (CBAM), Indian exports of steel, aluminum, and cement to the EU could face tariffs of 20-35 per cent.

Global front: European markets were trading lower as investors assessed a slew of earnings and awaited the Fed policy announcement later in the day for directional cues. Asian markets settled mostly higher on Wednesday, after confirmation that trade talks between the U.S. and China would take place in Switzerland this week, the first formal talks between the countries since U.S. President Donald Trump declared sweeping tariffs last month. 

Finally, the BSE Sensex rose 105.71 points or 0.13% to 80,746.78, and the CNX Nifty was up by 34.80 points or 0.14% to 24,414.40. 

The BSE Sensex touched high and low of 80,844.63 and 79,937.48 respectively. There were 17 stocks advancing against 12 stocks declining, while 1 stock remain unchanged on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.36%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were Auto up by 1.74%, Consumer Disc up by 1.21%, Metal up by 1.19%, Realty up by 1.12% and Consumer Durables up by 1.05%, while FMCG down by 0.41% and Healthcare down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 5.05%, Bajaj Finance up by 2.14%, Eternal up by 1.85%, Mahindra & Mahindra up by 1.64% and Adani Ports &SEZ up by 1.41%. On the flip side, Asian Paints down by 3.53%, Sun Pharma down by 1.95%, ITC down by 1.15%, HCL Technologies down by 1.04% and Reliance Industries down by 1.02% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India would impose retaliatory duties if the European Union (EU) goes ahead with its plan to levy a carbon tax on Indian products. Under the EU’s Carbon Border Adjustment Mechanism (CBAM), Indian exports of steel, aluminum, and cement to the EU could face tariffs of 20-35 per cent.

He said that gradually the talks about climate is dwindling and termed the CBAM as ‘very very irrational regulations’. He asserted that the developed countries should share technologies and finances to developing and least developing nations to deal with the issues related to climate change.

He stated ‘If they will put in carbon tax, and now there is a big if for obvious reasons. If they do put it in, we will retaliate. They will put it on products which really will hurt their own economy and the retaliation will further hurt their economy.’ He added ‘I think it will be very silly particularly to put tax on friendly countries. I am in continuous dialogue with them and I am hoping wiser sense will prevail in the EU countries.’

The CNX Nifty traded in a range of 24,449.60 and 24,220.00. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.18%, JIO Financial Services up by 2.11%, Bajaj Finance up by 2.04%, Shriram Finance up by 1.85%, and Eternal up by 1.65%. On the flip side, Asian Paints down by 3.97%, Sun Pharma down by 2.10%, Bajaj Auto down by 1.26%, ITC down by 1.24% and Grasim Industries down by 1.14% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 29.82 points or 0.35% to 8,567.60, France’s CAC fell 54.14 points or 0.7% to 7,642.78 and Germany’s DAX lost 52.86 points or 0.23% to 23,196.79.

Asian markets settled mostly higher on Wednesday, despite the broadly negative cues from Wall Street overnight ahead of the US Fed's interest rate decision and Powell's remarks for policy direction. Chinese and Hong Kong shares gained after Chinese authorities announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, to help boost the economy. Sentiment was also bolstered after confirmation that trade talks between the US and China would take place in Switzerland this week, the first formal talks between the countries since the US President Donald Trump declared sweeping tariffs last month. However, Japanese shares declined slightly as traders returned to their desks after a two-day holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,342.67

26.56

0.79

Hang Seng

22,691.88

29.17

0.13

Jakarta Composite

6,926.22

28.02

0.41

KLSE Composite

1,549.90

13.10

0.85

Nikkei 225

36,779.66

-51.03

-0.14

Straits Times

3,865.37

4.96

0.13

KOSPI Composite

2,573.80

14.01

0.54

Taiwan Weighted

20,546.49

23.90

0.12
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