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Business Recorder
27-05-2025
- Business
- Business Recorder
Financials, IT stocks weigh on Indian equity benchmarks
India's benchmark indexes fell on Tuesday, dragged by profit booking in heavyweight financials and information technology stocks, and as the broader Asian market slipped on uncertainty over U.S. trade policies. The Nifty 50 ended 0.70% lower at 24,826.20, while the BSE Sensex fell 0.76% to 81,551.63. The 50-stock index had risen about 1.6% in the previous two sessions driven by foreign inflows, easing trade tensions between the U.S. and the European Union, and the Reserve Bank of India's record dividend to the government. 'We are likely seeing some profit booking and liquidity divergence towards the primary market and a couple of large promoter stake sales,' said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. Three initial public offerings planning to raise 64.68 billion rupees ($757.7 million) are currently open for subscription. Indian shares advance on EU tariff relief, central bank's record dividend IndiGo lost 2% after the airline's co-founder sold shares worth $1.36 billion, while Sagility India shed 5% after the health tech firm's largest shareholder proposed to sell a 15.02% stake. Ten of the 13 major sectors logged losses. Heavyweight financials and information technology stocks lost 0.64% and 0.75%, respectively. The broader, small-caps and mid-caps each rose about 0.1%. MSCI Asia ex-Japan fell 0.4%. To drive the Nifty past the 25,000 resistance level investors will take cues from the U.S. Federal Reserve minutes, India's March quarter GDP data, due this week, and the RBI's rate decision next week, analysts said. Among individual stocks, UltraTech Cement fell 2.3% as concerns over demand due to the early onset of monsoon rains weighed on cement stocks. Jio Financial Services rose 3.4%, as the company's joint venture with BlackRock got market regulator's nod for mutual funds business.
Business Recorder
19-05-2025
- Business
- Business Recorder
Indian benchmark indexes drop as US downgrade hits IT stocks; broader market up on rate cut hopes
India's equity benchmark indexes inched lower on Monday, in tandem with global stocks, after Moody's lowered its rating on the United States, although the broader mid-cap and small-cap stocks continued to rally on rising bets of a domestic rate cut. The Nifty 50 fell 0.3% to end at 24,945.45 and the 30-member BSE Sensex closed 0.33% lower at 82,059.42. They swung between 0.2% gains and 0.4% losses during the session. Global stocks dropped and U.S. Treasury yields rose as Moody's downgrade of the U.S. government's credit rating to 'AA1' from 'AAA' raised concerns about the country's debt and rising deficits. Domestically, IT companies, which get a major portion of their revenue from the U.S., dropped 1.3% and were the biggest drag on benchmarks. However, the broader, more-domestically focused, small-caps and mid-caps added 0.5% and 0.1%, respectively. They have risen for six straight sessions, with the mid-cap index almost erasing its year-to-date losses. The Nifty and Sensex are up 5.5% and 5%, respectively, so far this year. The resilience in the broader market is likely due to sectoral churn as investors are buying infrastructure, real estate and other rate-sensitive stocks on the prospects of a rate cut, said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. Indian shares log weekly gains on ceasefire with Pakistan, US deal hopes Strong earnings from select companies in the broader markets have also aided sentiment, Agrawal said. India's retail inflation remained below the central bank's 4% target for the third consecutive month in April, raising expectations of aggressive rate cuts to support economic growth. The realty index jumped 2.3% on the day, to take its total gains to 7.7% in the four sessions since the inflation data was released. Among individual stocks, Vodafone Idea slumped 8.8% after the Supreme Court rejected the telecom company's plea to waive its dues to the government. Divi's Laboratories jumped 4.8% after the pharma company reported a bigger fourth-quarter profit.
