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Informist, Tuesday, May 6, 2025

By Akash Mandal

MUMBAI – Domestic benchmark indices ended slightly lower Tuesday due to profit booking across bank stocks, analysts said. Bank and financial services stocks were the biggest drags on the Nifty 50. Some stocks also fell sharply after reporting their March quarter earnings during the session, which also impacted market sentiment. However, a rise in some automobile and some fast-moving consumer goods stocks limited the decline in benchmark indices.

Indices had begun the session on a positive note and opened marginally higher after media reports said India had proposed zero tariffs on steel and automobile parts imported from the US. However, Nifty 50 soon fell below 24400 points as investors booked some profits at higher levels, analysts said. Derivatives analysts had expected indices to consolidate at these levels for some time after they had gained sharply in a short span of time towards the end of April.

The Nifty 50 ended lower by 81.55 points, or 0.3%, at 24379.60 points, dragged down by heavyweights such as State Bank of India, Axis Bank, and Reliance Industries. The BSE Sensex also fell 155.77 points, or 0.2%, to end at 80641.07 points. Adani Enterprises, Jio Financial Services, and Eternal were the worst-hit in the 50-stock index, ending 3-4% lower. Broader market indices ended 2-3% lower and underperformed their benchmark peers by a wide margin.

Some automobile stocks rose, and the Nifty Auto was the only sectoral index that ended in the green following reports of India proposing zero tariffs on imports of auto parts from the US. The Nifty Auto had risen nearly 2% to a two-month high in early trade, before it came off highs to end slightly up. Hero MotoCorp, Balkrishna Industries, and Eicher Motors ended 1-3% higher.

Shares of Mahindra & Mahindra ended nearly 2% higher on the back of positive commentary from analysts after the company reported its March quarter earnings during market hours Monday. Emkay Global Financial Services raised its target price for the stock by 11% to INR 3,000 and maintained its 'add' rating as the company delivered "operationally healthy" performance in the quarter.

Most pharmaceutical stocks ended lower after US President Donald Trump Monday signed an executive order that would reduce the time taken to approve pharmaceutical plants in the country, with an aim to boost drugs production in the US, Reuters reported. The US had earlier exempted pharmaceutical products from tariffs. The Nifty Pharma ended over 1% lower, with Divis Laboratories and Biocon being the only stocks in the index to end the session higher.

Among other stocks, Bank of Baroda nosedived after announcing its March quarter earnings and ended over 10% lower. The stock traded around 3% lower ahead of the earnings announcement but extended losses after the bank's net interest income fell on year while provisions rose. Other public sector banks such as Union Bank of India, Bank of India, and Indian Overseas Bank also ended around 6% lower each as the Nifty PSU Bank ended as the worst-hit sectoral index. The Nifty Bank, which had notched an all-time high late last month, has now fallen in seven of the past nine sessions, declining 2.5% in that period.

CG Power and Industrial Solutions extended losses to end 6% lower after the earnings before interest, taxes, depreciation, and amortisation of its industrial systems business was hit, which led to the company's bottom line missing the Street's estimate. Cummins India had fallen 8% in the early session after its US-based parent company Cummins Inc. withdrew its growth guidance for the full year amid uncertain macroeconomic conditions. The stock ended 5% lower.

CCL Products (India) soared over 17% after both its consolidated net profit and sales for the March quarter rose sharply on year. Godrej Agrovet ended over 4% higher after Kotak Institutional Equities upgraded the stock to 'buy' from 'add' and raised its target price to INR 870 from INR 840, CNBC-TV18 reported. The upgrade followed an "unwarranted" sell-off in the stock after the company reported its March quarter earnings. The stock fell nearly 14% on Friday. Polycab India briefly traded 5% higher after its bottom line for the March quarter surpassed analysts' expectations. However, it came off highs and ended just 2% higher.

Shares of Ather Energy were listed on the domestic bourses Tuesday. The stock ended at INR 302.30, down nearly 8% from its issue price of INR 328. Volumes were high with 15 million shares of the company changing hands on the National Stock Exchange during its first session.

* Of the Nifty 50 stocks, 19 rose and 31 fell

* Of the Sensex stocks, 15 rose and 15 fell

* On the NSE, 545 stocks rose, 2,331 fell, and 70 were unchanged

* On the BSE, 779 stocks rose, 3,167 fell, and 126 were unchanged

* Nifty PSU Bank: down 4.8%; Nifty Realty: down 3.6%; Nifty Auto: up 0.2%

BSE                                               NSE

Sensex: 80641.07, down 155.77 points or 0.2%      Nifty 50: 24379.60, down 81.55 points or 0.3%

End

Edited by Tanima Banerjee

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