Indian benchmark indexes ended lower on Tuesday, as widespread losses in financial and pharma stocks eclipsed gains in Mahindra & Mahindra, which surged on optimism over its earnings outlook, as well as advances in heavyweights Reliance Industries and Bharti Airtel.
The benchmark BSE Sensex shed 155.77 points or 0.19% to close at 80,641.07, while the broader Nifty 50 index closed at 24,379.60, lower by 81.55 points or 0.33%.
The market capitalization of all listed companies on the BSE decreased by Rs 7.04 lakh crore to Rs 421.09 lakh crore.
Sector Watch
Pharma stocks fell 1.1% after U.S. President Donald Trump signed an executive order aimed at speeding up pharmaceutical plant approvals to boost domestic manufacturing. Indian drugmakers, which derive a large share of revenue from the U.S. — the country’s biggest buyer of India-made medicines — face potential risks from the move.
Sun Pharma, which generated $474 million in U.S. revenue last quarter (over 30% of consolidated sales) and earns 72.7% of its total FY24 turnover from exports, closed 1% lower. Shares of Lupin, Aurobindo Pharma, Cipla also fell up to 3%.
Trump also signaled that sector-specific tariffs on pharmaceuticals and semiconductors may be announced within two weeks.
Heavyweight financials, up more than 13% over the past two months, slipped 0.75%, leading benchmark losses. Bank of Baroda plunged 10.1% — its worst session in 11 months — dragging public sector banks down 4.8% after reporting weaker quarterly net interest income.
With the exception of autos, all major sectors ended in the red. The auto index rose 0.2%, lifted by Mahindra & Mahindra, which gained 1.2% to top the Nifty 50 gainers list.
Among debut stocks, Ather Energy opened at a 2.18% premium to its issue price but closed 5.8% lower on the first day of trading, as concerns over high valuation and rising competition in the electric two-wheeler market weighed on sentiment.
Expert View
The domestic market has been consolidating in recent sessions following the strong recovery, driven by cautious sentiment amid India-Pakistan border tensions, said Vinod Nair, Head of Research at Geojit Investments, adding that weak earnings growth for the current quarter has further impacted the market.
"Small-cap and mid-cap stocks have underperformed compared to benchmark indices. Meanwhile, investors are closely monitoring India's bilateral trade negotiations with the US. Additionally, speculation around the US Federal Reserve is drawing attention, as no rate cuts are expected in the near term, affecting global trends," said Nair.
Global Markets
Global stocks edged lower on Tuesday and the dollar slipped against major currencies as investors awaited the Federal Reserve’s policy decision on Wednesday and weighed ongoing tariff concerns.
Markets were watching for signs of easing U.S.-China trade tensions after Beijing said last week it was reviewing Washington’s offer for talks. President Donald Trump, meanwhile, reiterated that his top priority with China is securing a fair deal.
Europe’s STOXX 600 fell 0.4% but stayed near levels seen before Trump’s tariff announcement on April 2. Britain’s FTSE 100 edged up 0.1%, eyeing a record 16th straight gain, while Germany’s DAX dropped 1%.
In Asia, MSCI’s Asia-Pacific index outside Japan was flat, with Tokyo closed for a holiday. Chinese markets reopened with gains, as the blue-chip index and Hong Kong’s Hang Seng rose about 1%.
Dollar weakness spread to Asian currencies, highlighted by the Taiwan dollar’s sharp rally, fueling speculation of regional FX revaluation to secure U.S. trade concessions.
Gold climbed 1.2% to a one-week high of $3,375/oz on safe-haven demand.
Crude Impact
Oil prices rose more than $1.50 a barrel on Tuesday, rebounding on technical buying and bargain hunting after sliding in the previous session following an OPEC+ decision to increase output, though concerns over a potential supply glut lingered.
Brent crude futures climbed $1.67, or 2.8%, to $61.90 a barrel by 0927 GMT, marking their first gain after six straight losses.
Rupee vs Dollar
The Indian rupee fell on Tuesday, driven by modest losses in regional currencies and dollar demand from foreign banks, though a broader decline in the greenback helped limit the drop. The currency closed at 84.4325 against the U.S. dollar, down 0.2% for the day.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.05% at 99.78.
(With inputs from agencies)
The benchmark BSE Sensex shed 155.77 points or 0.19% to close at 80,641.07, while the broader Nifty 50 index closed at 24,379.60, lower by 81.55 points or 0.33%.
The market capitalization of all listed companies on the BSE decreased by Rs 7.04 lakh crore to Rs 421.09 lakh crore.
Sector Watch
Pharma stocks fell 1.1% after U.S. President Donald Trump signed an executive order aimed at speeding up pharmaceutical plant approvals to boost domestic manufacturing. Indian drugmakers, which derive a large share of revenue from the U.S. — the country’s biggest buyer of India-made medicines — face potential risks from the move.
Sun Pharma, which generated $474 million in U.S. revenue last quarter (over 30% of consolidated sales) and earns 72.7% of its total FY24 turnover from exports, closed 1% lower. Shares of Lupin, Aurobindo Pharma, Cipla also fell up to 3%.
Trump also signaled that sector-specific tariffs on pharmaceuticals and semiconductors may be announced within two weeks.
Heavyweight financials, up more than 13% over the past two months, slipped 0.75%, leading benchmark losses. Bank of Baroda plunged 10.1% — its worst session in 11 months — dragging public sector banks down 4.8% after reporting weaker quarterly net interest income.
With the exception of autos, all major sectors ended in the red. The auto index rose 0.2%, lifted by Mahindra & Mahindra, which gained 1.2% to top the Nifty 50 gainers list.
Among debut stocks, Ather Energy opened at a 2.18% premium to its issue price but closed 5.8% lower on the first day of trading, as concerns over high valuation and rising competition in the electric two-wheeler market weighed on sentiment.
Expert View
The domestic market has been consolidating in recent sessions following the strong recovery, driven by cautious sentiment amid India-Pakistan border tensions, said Vinod Nair, Head of Research at Geojit Investments, adding that weak earnings growth for the current quarter has further impacted the market.
"Small-cap and mid-cap stocks have underperformed compared to benchmark indices. Meanwhile, investors are closely monitoring India's bilateral trade negotiations with the US. Additionally, speculation around the US Federal Reserve is drawing attention, as no rate cuts are expected in the near term, affecting global trends," said Nair.
Global Markets
Global stocks edged lower on Tuesday and the dollar slipped against major currencies as investors awaited the Federal Reserve’s policy decision on Wednesday and weighed ongoing tariff concerns.
Markets were watching for signs of easing U.S.-China trade tensions after Beijing said last week it was reviewing Washington’s offer for talks. President Donald Trump, meanwhile, reiterated that his top priority with China is securing a fair deal.
Europe’s STOXX 600 fell 0.4% but stayed near levels seen before Trump’s tariff announcement on April 2. Britain’s FTSE 100 edged up 0.1%, eyeing a record 16th straight gain, while Germany’s DAX dropped 1%.
In Asia, MSCI’s Asia-Pacific index outside Japan was flat, with Tokyo closed for a holiday. Chinese markets reopened with gains, as the blue-chip index and Hong Kong’s Hang Seng rose about 1%.
Dollar weakness spread to Asian currencies, highlighted by the Taiwan dollar’s sharp rally, fueling speculation of regional FX revaluation to secure U.S. trade concessions.
Gold climbed 1.2% to a one-week high of $3,375/oz on safe-haven demand.
Crude Impact
Oil prices rose more than $1.50 a barrel on Tuesday, rebounding on technical buying and bargain hunting after sliding in the previous session following an OPEC+ decision to increase output, though concerns over a potential supply glut lingered.
Brent crude futures climbed $1.67, or 2.8%, to $61.90 a barrel by 0927 GMT, marking their first gain after six straight losses.
Rupee vs Dollar
The Indian rupee fell on Tuesday, driven by modest losses in regional currencies and dollar demand from foreign banks, though a broader decline in the greenback helped limit the drop. The currency closed at 84.4325 against the U.S. dollar, down 0.2% for the day.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.05% at 99.78.
(With inputs from agencies)
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