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Markets continue to trade on cautious note
Jun-17-2025

Indian equity benchmarks have pared some losses, but continue to trade well below the unchanged line. Traders remained cautious as escalating tensions in Middle East due to the Israel-Iran conflict continue to weigh on market sentiments. Besides, recent data published by the government showed India’s unemployment rate for the month of May rose to 5.6%, kept the risk appetite subdued. Further, investors overlook the recent ICRA report indicating that India Inc is expected to report stable revenue growth in Q1 FY2026, on the back of resilient domestic demand. The agency said that rural demand is expected to remain healthy, while urban demand looks set to recover supported by income tax relief and easing food inflation.

On the global front, Asian equity markets were trading mostly in green as Bank of Japan left interest rates unchanged and announced that it would decelerate the reduction of its government bond purchases beginning in April 2026. European markets were trading lower ahead of release of Germany’s economic sentiment survey data. 

The BSE Sensex is currently trading at 81555.18, down by 240.97 points or 0.29% after trading in a range of 81427.01 and 81890.15. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.50%, while Small cap index was down by 0.59%.

The only gaining sectoral indices on the BSE were IT up by 0.68% and TECK up by 0.45%, while Healthcare down by 1.96%, Metal down by 1.33%, Oil & Gas down by 0.87%, Basic Materials down by 0.83%, Utilities down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.33%, Infosys up by 1.06%, Asian Paints up by 0.90%, HCL Technologies up by 0.64% and TCS up by 0.51%. On the flip side, Sun Pharma Industries down by 2.24%, Bajaj Finance down by 1.65%, Eternal down by 1.41%, Tata Motors down by 1.35% and Bajaj Finserv down by 1.24% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India's merchandise exports to the US rose by 16.93 per cent to $8.83 billion in May 2025, while imports dipped by 5.76 per cent to $3.62 billion during the month. During April-May, the country's exports to the US increased by 21.78 per cent to $17.25 billion, while imports rose by 25.8 per cent to $8.87 billion.

The US was the second-largest trading partner of India in April-May. China, another major trading partner of India, saw a 25 per cent jump in exports from India to $1.64 billion in May and 18.75 per cent growth in April-May to $3.04 billion. Imports from the neighbouring country in May rose by 21.16 per cent to $10.31 billion while in April-May by 24.23 per cent to $20.22 billion. Singapore, Germany, Australia, Belgium, Korea and Russia were also among the countries which saw positive growth in exports from India in May.

However, exports to the UAE, the Netherlands, the UK, Bangladesh, Saudi Arabia, South Africa, Italy, France, Malaysia, and Brazil declined in May. On the imports front, inbound shipments in May declined from nations including Russia, Iraq, Saudi Arabia, Indonesia and Qatar. However, imports rose from the UAE, Japan, Korea, Singapore and Germany.

Talking about the impact of high tariffs imposed by the US on steel, aluminium and auto parts, Special Secretary in the Department of Commerce Rajesh Agrawal said India does not export a lot of steel and aluminium to the US. He said ‘there is a uniform duty on auto components for all countries, so we have not seen a big dent on the sector. But if it will be continued for long, there could be some impact. If some countries will get exemptions from this duty then it may impact Indian players.’ The US has imposed 25 per cent tariffs on these products. 

The CNX Nifty is currently trading at 24861.50, down by 85.00 points or 0.34% after trading in a range of 24813.70 and 24982.05. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.36%, Infosys up by 1.10%, Asian Paints up by 0.90%, HDFC Life Insurance up by 0.68% and HCL Technologies up by 0.68%. On the flip side, Dr. Reddy's Laboratories down by 2.58%, Sun Pharma Industries down by 2.14%, Adani Enterprises down by 2.09%, Bajaj Finance down by 1.71% and Cipla down by 1.70% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 161.69 points or 0.73% to 22,211.59, Straits Times rose 15.3 points or 0.39% to 3,923.76, Nikkei 225 surged 225.41 points or 0.58% to 38,536.74, KOSPI increased 3.64 points or 0.12% to 2,950.30 and Jakarta Composite gained 41.2 points or 0.58% to 7,158.79, while Shanghai Composite weakened 1.33 points or 0.04% to 3,387.40 and Hang Seng declined 80.69 points or 0.34% to 23,980.30.

European markets were trading lower; UK’s FTSE 100 decreased 37.08 points or 0.42% to 8,838.14, France’s CAC fell 55.38 points or 0.72% to 7,686.86 and Germany’s DAX lost 282.28 points or 1.21% to 23,416.84.
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