Market Commentary - Quick Review
The key equity indices ended with significant losses today weighed down by global risk aversion. Market sentiment remained subdued amid concerns that the U.S. budget bill could significantly increase the national debt, potentially threatening the country's status as a global safe haven. Traders are expected to monitor global bond markets and fiscal developments closely in coming days. The Nifty settled below the 24,650 mark. The market was volatile due to the weekly expiry of the Nifty F&O series today.
Barring media index al the sectoral indices on the NSE were ended in red with FMCG, IT and oil & gas shares declining the most.
As per closing provisional data, the barometer index, the S&P BSE Sensex tanked 644.64 points or 0.79% to 80,951.99. The Nifty 50 index tumbled 203.75 points or 0.82% to 24,609.70.
In the broader market, the S&P BSE Mid-Cap index declined 0.33% and the S&P BSE Small-Cap index rose 0.17%.
The market breadth was negative. On the BSE, 1,745 shares rose and 2,176 shares fell. A total of 165 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 1.65% to 17.26.
Economy:
India's private sector activity witnessed a notable acceleration in May, as indicated by the HSBC Flash India Composite Output Index, which rose to 61.2 from 59.7 in April. The seasonally adjusted index'tracking month-on-month changes in output across both manufacturing and services'signaled a sharp rate of expansion.
This uptick was largely driven by stronger performance in the services sector. Robust inflows of new business, both domestic and international, fueled faster growth in business activity and employment.
Meanwhile, the HSBC Flash India Manufacturing PMI remained largely stable, edging up slightly to 58.3 in May from 58.2 in April. The reading continued to reflect a strong improvement in the overall health of the manufacturing sector, the HSBC Flash India services PMI business activity index surged to 61.2 in May from 58.7 April, while the HSBC Flash India manufacturing PMI output activity index dipped marginally to 61.4 from April's 61.9.
IPO Update:
The initial public offer of Belrise Industries received bids for 42,51,93,064 shares as against 17,70,58,824 shares on offer, according to stock exchange data at 15:33 IST on 22 May 2025. The issue was subscribed 2.40 times.
The issue opened for bidding on 21 May 2025 and it will close on 23 May 2025. The price band of the IPO is fixed between Rs 85 and 90 per share. An investor can bid for a minimum of 166 equity shares and in multiples thereof.
The initial public offer of Borana Weaves received bids for 52,55,15,316 shares as against 36,89,457 shares on offer, according to stock exchange data at 15:33 IST on 22 May 2025. The issue was subscribed 142.44 times.
The issue opened for bidding on 20 May 2025 and it will close on 22 May 2025. The price band of the IPO is fixed between Rs 205 and 216 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.
Buzzing Index:
The Nifty FMCG index declined 1.44% to Rs 55,598.05. The index advanced in the past trading session.
Colgate-Palmolive (India) (down 6.54%), United Breweries (down 2.36%), Varun Beverages (down 1.92%), ITC (down 1.63%), Marico (down 1.57%), Hindustan Unilever (down 1.45%), Nestle India (down 1.24%), Godrej Consumer Products (down 1.18%), Dabur India (down 0.98%) and Britannia Industries (down 0.97%) tumbled.
Colgate Palmolive (India) tanked 6.54% after the company's standalone net profit declined 6.53% to Rs 355 crore in Q4 FY25 as against Rs 379.82 crore posted in Q4 FY24. Revenue from operations fell 1.93% year on year (YoY) to Rs 1,452 crore in the quarter ended 31 March 2025.
Stocks in Spotlight:
Oil and Natural Gas Corporation (ONGC) declined 2.71% after the company's standalone net profit fell 34.66% to Rs 6,448.28 crore in Q4 FY25 as against Rs 9,869.37 crore posted in Q4 FY24. Revenue from operations declined marginally to Rs 34,982.23 crore in Q4 FY25, compared to Rs 34,636.69 crore reported in Q4 FY24.
H.G. Infra Engineering dropped 6.49% after the company reported 22.65% decline in consolidated net profit to Rs 146.98 crore in Q4 FY25 as against Rs 190.03 crore posted in Q4 FY24. Revenue from operations fell 20.33% YoY to Rs 1,360.89 crore in the quarter ended 31 March 2025.
Rupa & Company rose 3.04% after the company's net profit rose 26% to Rs 30.6 crore while net sales rose 4% to Rs 415.5 crore in Q4 March 2025 over Q4 March 2024.
Astral jumped 5.05% after its standalone net profit jumped 3.76% to Rs 190 crore on 3.64% rise in revenue from operations to Rs 1,542.3 in Q4 FY25 over Q4 FY24.
IndusInd Bank added 1.73%. The bank reported a standalone net loss of Rs 2,235.99 crore in Q4 FY25 as against a net profit of Rs 2,346.84 crore posted in Q4 FY24. Total income declined 22.83% year on year to Rs 11,342.65 crore in the quarter ended 31 March 2025.
Aditya Birla Fashion and Retail (ABFRL) 6.44% as the stock turned ex-demerger following the spin-off of its lifestyle brands business into a separate listed entity, Aditya Birla Lifestyle Brands (ABLBL).
Dishman Carbogen Amcis surged 11.32% after the company reported consolidated net profit of Rs 43.09 crore in Q4 March 2025 as against net loss of Rs 69.92 crore in Q4 March 2024. Consolidated net sales rose 9.41% year-on-year to Rs 716.34 crore in Q4 March 2025.
Global Markets:
European shares declined on Thursday as investors will be closely watching earnings reports from BT, British Land, and Tate & Lyle on Thursday. Additionally, preliminary Purchasing Managers' Index (PMI) data for France and the U.K. is scheduled to be released.
Most Asian stocks ended lower, mirroring overnight losses on Wall Street. Investor sentiment was impacted by concerns that a proposed U.S. budget bill could significantly increase the national debt.
In Japan, the manufacturing sector contracted for the eleventh consecutive month in May, according to preliminary data from the au Jibun Bank flash manufacturing Purchasing Managers' Index (PMI). The index registered at 49.0 for the first three weeks of May, slightly improving from 48.7 in April but remaining below the 50-mark that separates growth from contraction.
In the United States, all three major stock indices closed lower on Wednesday. The Dow Jones Industrial Average fell 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq Composite declined 1.41%. The market selloff was attributed to a sharp rise in Treasury yields amid concerns that the proposed budget bill could increase fiscal pressure.
The proposed legislation, which includes tax cuts and spending measures, is reportedly facing resistance from within the Republican party. Analysts estimate the bill could add between $3 trillion and $5 trillion to the current U.S. debt, which stands at $36.2 trillion. The development follows a recent credit rating downgrade by Moody's, citing concerns over the rising national debt.
In corporate news, Alphabet Inc. shares rose more than 2% following the company's announcement of new AI-related products and initiatives aimed at maintaining its competitive edge in the sector.
Microsoft Corporation traded slightly lower after disclosing that approximately 394,000 Windows devices worldwide had been infected by the Lumma malware.
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