Indian benchmark indices ended lower on Friday, as renewed U.S. tariff concerns weighed on IT and auto stocks, eclipsing broader optimism ahead of domestic GDP data due later in the day.
The BSE Sensex declined 182.01 points, or 0.22%, to close at 81,451.01, while the NSE Nifty slipped 82.90 points, or 0.33%, to settle at 24,750.70.
The market capitalization of all listed companies on the BSE decreased by Rs 2.08 lakh crore to Rs 444.19 lakh crore.
Sector Watch
On the 30-stock Sensex, Tech Mahindra, HCL Technologies, Asian Paints, NTPC, Infosys, Nestle India, and Tata Steel were among the top laggards, shedding between 1.3% and 1.7%.
Information technology stocks, which generate a significant portion of their revenue from the U.S., dropped 1.1% after an appeals court temporarily reinstated the most expansive of former President Donald Trump’s tariffs. The move reversed a U.S. trade court decision earlier this week that had blocked the duties, citing presidential overreach.
HCL Technologies, Tech Mahindra, LTI Mindtree, and TCS were the biggest drags on the Nifty IT index, falling between 1% and 2%.
The Nifty Auto index declined 1%, weighed down by a 3% fall in Bajaj Auto after the company reported a 10% year-on-year drop in consolidated net profit for Q4FY25, at Rs 1,802 crore versus Rs 2,011 crore in the same period last year.
Broader market sentiment was subdued, with the Nifty Midcap 100 and Nifty Smallcap 100 slipping 0.2% and 0.1%, respectively.
Despite Friday’s losses, the Nifty 50 rose 1.7% in May, while the BSE Sensex added 1.5% during the month. Both benchmarks have gained around 12% since March, though they remain about 6% below their record highs from September 2024.
Expert View
A range-bound movement continued in the market, with the temporary reinstatement of U.S. tariffs by the appeal court influencing investors to stay sidelined, said Vinod Nair, Head of Research at Geojit Investments, adding that the global market may contend with macroeconomic concerns as the global trade landscape has yet to see stability, which may navigate a short-term consolidation.
"Meanwhile, FII inflows continued due to the volatility in the US 10-year yield and an expectation of solid domestic Q4 GDP data later today and a rate cut by RBI," said Nair.
"The Nifty remained volatile with a slightly negative bias on the first day of the June series. On the smaller time frame, the index has formed a bearish moving average crossover. The RSI on the hourly chart indicates bearish price momentum, suggesting short-term weakness," said Rupak De, Senior Technical Analyst at LKP Securities, adding that the signs of exhaustion are visible on the daily RSI, accompanied by a strong negative divergence.
However, Nifty has been struggling to move beyond a certain level, said De, adding that "immediate support is placed at 24,700; a breach below this level could lead to a decline towards 24,500. On the higher side, 24,800 is likely to act as a crucial resistance, as call writers have built significant positions at that level."
Global Markets
Global equities were on track for their strongest monthly performance since late 2023 on Friday, while the U.S. dollar edged toward its first monthly gain of 2025, as investors awaited key inflation data and monitored ongoing tariff developments in Washington.
MSCI’s main world index has climbed over 5% in May, while the dollar, up 0.3% on Friday, is nearing a positive monthly close.
Supporting the dollar, benchmark 10-year U.S. Treasury yields—seen as a gauge of U.S. borrowing costs—rose slightly in European trade, recovering from a dip on Thursday following soft economic data and a strong 7-year bond auction.
In Asia, Japan’s Nikkei retreated following a nearly 2% rally the previous session, as investors booked profits and weighed concerns over national debt and tariff implications. Hong Kong’s Hang Seng dropped 1.2%, with Mainland Chinese blue chips slipped 0.5%, though both indexes posted solid monthly gains. South Korea’s benchmark outperformed, recording its best month since November 2023, in line with global peers.
Crude Impact
Oil prices held steady on Friday but were set for a second straight weekly loss, weighed down by expectations of a potential OPEC+ output increase and renewed uncertainty over U.S. tariffs following a legal ruling that kept them in place.
Brent crude futures edged up 23 cents, or 0.36%, to $64.38 a barrel by 0949 GMT, while U.S. West Texas Intermediate (WTI) crude rose 32 cents, or 0.53%, to $61.26.
Rupee vs Dollar
The Indian rupee weakened on Friday, settling at 85.57 against the U.S. dollar, as volatility in domestic equities and a rebound in global crude prices weighed on the currency. The rupee fell nearly 1% in May, snapping a two-month gaining streak.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.28% to 99.49.
(with inputs from agencies)
The BSE Sensex declined 182.01 points, or 0.22%, to close at 81,451.01, while the NSE Nifty slipped 82.90 points, or 0.33%, to settle at 24,750.70.
The market capitalization of all listed companies on the BSE decreased by Rs 2.08 lakh crore to Rs 444.19 lakh crore.
Sector Watch
On the 30-stock Sensex, Tech Mahindra, HCL Technologies, Asian Paints, NTPC, Infosys, Nestle India, and Tata Steel were among the top laggards, shedding between 1.3% and 1.7%.
Information technology stocks, which generate a significant portion of their revenue from the U.S., dropped 1.1% after an appeals court temporarily reinstated the most expansive of former President Donald Trump’s tariffs. The move reversed a U.S. trade court decision earlier this week that had blocked the duties, citing presidential overreach.
HCL Technologies, Tech Mahindra, LTI Mindtree, and TCS were the biggest drags on the Nifty IT index, falling between 1% and 2%.
The Nifty Auto index declined 1%, weighed down by a 3% fall in Bajaj Auto after the company reported a 10% year-on-year drop in consolidated net profit for Q4FY25, at Rs 1,802 crore versus Rs 2,011 crore in the same period last year.
Broader market sentiment was subdued, with the Nifty Midcap 100 and Nifty Smallcap 100 slipping 0.2% and 0.1%, respectively.
Despite Friday’s losses, the Nifty 50 rose 1.7% in May, while the BSE Sensex added 1.5% during the month. Both benchmarks have gained around 12% since March, though they remain about 6% below their record highs from September 2024.
Expert View
A range-bound movement continued in the market, with the temporary reinstatement of U.S. tariffs by the appeal court influencing investors to stay sidelined, said Vinod Nair, Head of Research at Geojit Investments, adding that the global market may contend with macroeconomic concerns as the global trade landscape has yet to see stability, which may navigate a short-term consolidation.
"Meanwhile, FII inflows continued due to the volatility in the US 10-year yield and an expectation of solid domestic Q4 GDP data later today and a rate cut by RBI," said Nair.
"The Nifty remained volatile with a slightly negative bias on the first day of the June series. On the smaller time frame, the index has formed a bearish moving average crossover. The RSI on the hourly chart indicates bearish price momentum, suggesting short-term weakness," said Rupak De, Senior Technical Analyst at LKP Securities, adding that the signs of exhaustion are visible on the daily RSI, accompanied by a strong negative divergence.
However, Nifty has been struggling to move beyond a certain level, said De, adding that "immediate support is placed at 24,700; a breach below this level could lead to a decline towards 24,500. On the higher side, 24,800 is likely to act as a crucial resistance, as call writers have built significant positions at that level."
Global Markets
Global equities were on track for their strongest monthly performance since late 2023 on Friday, while the U.S. dollar edged toward its first monthly gain of 2025, as investors awaited key inflation data and monitored ongoing tariff developments in Washington.
MSCI’s main world index has climbed over 5% in May, while the dollar, up 0.3% on Friday, is nearing a positive monthly close.
Supporting the dollar, benchmark 10-year U.S. Treasury yields—seen as a gauge of U.S. borrowing costs—rose slightly in European trade, recovering from a dip on Thursday following soft economic data and a strong 7-year bond auction.
In Asia, Japan’s Nikkei retreated following a nearly 2% rally the previous session, as investors booked profits and weighed concerns over national debt and tariff implications. Hong Kong’s Hang Seng dropped 1.2%, with Mainland Chinese blue chips slipped 0.5%, though both indexes posted solid monthly gains. South Korea’s benchmark outperformed, recording its best month since November 2023, in line with global peers.
Crude Impact
Oil prices held steady on Friday but were set for a second straight weekly loss, weighed down by expectations of a potential OPEC+ output increase and renewed uncertainty over U.S. tariffs following a legal ruling that kept them in place.
Brent crude futures edged up 23 cents, or 0.36%, to $64.38 a barrel by 0949 GMT, while U.S. West Texas Intermediate (WTI) crude rose 32 cents, or 0.53%, to $61.26.
Rupee vs Dollar
The Indian rupee weakened on Friday, settling at 85.57 against the U.S. dollar, as volatility in domestic equities and a rebound in global crude prices weighed on the currency. The rupee fell nearly 1% in May, snapping a two-month gaining streak.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.28% to 99.49.
(with inputs from agencies)
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