Barometers pare gains; Nifty below 24,750; VIX slumps 6.85%

Business Standard

29-05-2025

The key equity indices reversed all gains and traded with limited cuts in the mid-morning trade, despite positive global cues after a U.S. federal court blocked former President Trump's proposed Liberation Day tariffs.
The Nifty traded above the 24,750 mark. PSU bank shares slipped after advancing for the past four consecutive trading sessions. The market could be volatile due to the monthly expiry of the Nifty F&O series today.
At 11:30 ST, the barometer index, the S&P BSE Sensex, shed 37.91 points or 0.05% to 81,275.95. The Nifty 50 index fell 21.35 points or 0.09% to 24,732.40.
The broader market underperformed the frontline indices, The S&P BSE Mid-Cap index rose 0.18% and the S&P BSE Small-Cap index added 0.23%.
The market breadth was positive. On the BSE, 1,802 shares rose and 1,706 shares fell. A total of 218 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 6.85% to 16.65.
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The initial public offer (IPO) of Scoda Tubes received bids for 4,17,25,260 shares as against 1,18,46,169 shares on offer, according to stock exchange data at 11:25 IST on Thursday (29 May 2025). The issue was subscribed 3.52 times.
The issue opened for bidding on Wednesday (28 May 2025) and it will close on Friday (30 May 2025). The price band of the IPO is fixed between Rs 130 and 140 per share. An investor can bid for a minimum of 100 equity shares and in multiples thereof.
The initial public offer (IPO) of Prostarm Info Systems received bids for 28,73,00,222 shares as against 1,12,00,000 shares on offer, according to stock exchange data at 11:25 IST on Thursday (29 May 2025). The issue was subscribed 25.65 times.
The issue opened for bidding on Tuesday (27 May 2025) and it will close on Thursday (29 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.
Buzzing Index:
The Nifty PSU bank index fell 0.65% to 6,752.60. The index added 1.26% in the previous four trading sessions.
Indian Bank (down 1.56%), Union Bank of India (down 1.38%), Bank of India (down 0.91%), Punjab & Sind Bank (down 0.55%), State Bank of India (down 0.4%), Bank of Baroda (down 0.39%), Bank of Maharashtra (down 0.31%), Punjab National Bank (down 0.3%), Indian Overseas Bank (down 0.29%) and Canara Bank (down 0.21%) added.
Stocks in Spotlight:
Welspun Corp jumped 9.02% after its consolidated net profit surged 160.09% to Rs 698.31 crore, despite a 12.01% fall in revenue from operations to Rs 3,924.97 crore in Q4 FY25 over Q4 FY24.
Indian Railway Catering & Tourism Corporation (IRCTC) shed 0.25%. The company reported a 26.06% jump in consolidated net profit to Rs 358.23 crore, while revenue from operations rose 10.14% to Rs 1,268.53 crore in Q4 March 2025 over Q4 March 2024.
Avanti Feeds rallied 3.15% after the companys consolidated net profit jumped 45.8% to Rs 151.77 crore on 7.9% increase in revenue from operations to Rs 1,385.14 crore in Q4 FY25 over Q4 FY24.
Global Markets:
US Dow Jones futures surged 595 points early Thursday, setting the stage for a buoyant open on Wall Street.
Asian shares mostly followed suit, climbing higher after a US federal court delivered a significant blow to President Donald Trump's sweeping "reciprocal" tariffs. The court ruled that Trump had overstepped his authority by imposing tariffs on over 180 countries and territories back in April.
The decision came from a three-judge panel at the US Court of International Trade. They found that the 1977 International Emergency Economic Powers Act (IEEPA), the legal crutch Trump leaned on, didn't give the president free rein to roll out such broad trade measures. The court issued a permanent halt to the tariffs named in the case and blocked any future tweaks. The Trump administration now has 10 days to make the necessary changes but has already appealed the decision to the US Court of Appeals for the Federal Circuit.
Meanwhile, South Korea's central bank, the Bank of Korea, cut its benchmark interest rate from 2.75% to 2.5%, marking its lowest level since August 2022.
Investors in Asia are also keeping a close watch on chipmakers after Nvidias strong earnings. The GPU giant beat expectations on both top and bottom lines, driven by a 73% year-over-year surge in its data center business.
Back in the US, stock markets closed lower on Wednesday. The S&P 500 dipped 0.56%, the Nasdaq fell 0.51%, and the Dow Jones lost 0.58% as investors digested earnings and the latest Fed minutes.
Speaking of which, the Feds May 6-7 meeting minutes hinted at a looming policy dilemma. Officials acknowledged that they may soon face some tough calls if inflation and unemployment start rising together. The Fed might be forced to choose between fighting inflation with higher rates or supporting growth and jobs by cutting them.