Indian Equity Markets End Lower; Sensex Down 200 Points, Nifty Holds Firm Above 25,000

Indian stock markets closed marginally lower on May 16, 2025, with benchmark indices consolidating near record highs. The BSE Sensex ended the day down by 200.15 points or 0.24% at 82,330.59, while the NSE Nifty 50 fell 42.30 points or 0.17% to settle at 25,019.80. Despite the modest decline, Nifty managed to hold above the psychologically significant 25,000 mark, supported by selective stock-specific gains and strong quarterly earnings from mid- and small-cap companies.

Highlights:

• Sensex closed down 200.15 points, while Nifty held above 25,019.

• Consolidation continued near record highs, with profit-booking seen in large caps.

• Domestic earnings and high-frequency economic data expected to guide near-term direction.

Global Cues Remain Mixed; Asian Indices Slip Amid Weak Sentiment

Asian equities saw a mostly negative session, weighing on investor sentiment back home. The MSCI Asia-Pacific ex-Japan index slipped by 0.2%, reflecting caution ahead of major macro data from the U.S. and China. Japan’s Nikkei 225 dropped 0.54%, while the Topix index shed 0.36%, mirroring weak tech and manufacturing sentiment. South Korea’s Kospi fell 0.47%, and the Kosdaq index declined by 0.77%. In Hong Kong, futures on the Hang Seng index pointed to a weak open, amplifying fears of regional growth deceleration.

Highlights:

• MSCI Asia-Pacific ex-Japan fell 0.2%, Nikkei down 0.54%.

• Kospi and Kosdaq slipped 0.47% and 0.77%, respectively.

• Hang Seng futures hinted at lower opening on renewed China-related fears.

Markets Open on a Weak Note; Analysts Eye Earnings and Macro Data

The Indian market opened flat to slightly negative, tracking global weakness. The Sensex opened at 82,354.92 and soon declined 123.31 points to 82,207.28 by 9:16 am. The Nifty traded flat at 25,024.40, showing early resistance to global selling pressure. The Gift Nifty was trading at 25,070, indicating a neutral bias. Analysts cited the absence of major global events and the end of the recent pullback rally as reasons for consolidation. According to Ajit Mishra, SVP at Religare Broking, market direction is now heavily dependent on Q4 earnings, domestic macro indicators, and foreign institutional flows.

Highlights:

• Sensex dropped early by 123 points, Nifty remained near flat.

• Gift Nifty at 25,070 suggested muted sentiment.

• Ajit Mishra expects earnings, FPI flows, and macro data to guide momentum.

Earnings-Driven Momentum: Strong Q4 Results Across Midcaps and Smallcaps

Earnings continued to offer upside triggers for a broad set of mid- and small-cap companies. A large number of firms across sectors reported robust year-on-year growth in both net profits and revenues.

Major Q4 Earnings – Positive:

• Banco Products: Net Profit surged to ₹153.5 Cr from ₹68.2 Cr; revenue rose to ₹868 Cr.

• Zen Tech: Net Profit climbed to ₹111.5 Cr from ₹38 Cr; revenue more than doubled to ₹325 Cr.

• Rajesh Exports: Net Profit up to ₹35.5 Cr from ₹12.42 Cr; revenue rose sharply to ₹96,630 Cr from ₹65,476 Cr.

• Kaynes Technology: Profit surged to ₹116 Cr from ₹81 Cr; revenue increased to ₹984.4 Cr.

• Delhivery: Swung to a profit of ₹72.5 Cr vs a loss of ₹68.4 Cr; revenue rose to ₹2,191.5 Cr.

Additional Positive Reports:

• BEL: Won fresh orders worth ₹572 Cr in defence systems.

• Waaree Renewable: Secured a ₹114 Cr solar project.

• Premier Energies: Entered JV with SAS for solar wafer manufacturing in India.

• KEC International: Bagged new orders worth ₹1,133 Cr.

• Paradeep Phosphates: Secured court-ordered subsidy release of ₹53.5 Cr.

Highlights:

• Widespread YoY earnings growth seen in manufacturing, renewables, logistics, and tech.

• Strong rebound in Delhivery and Zen Tech helped improve market sentiment.

• Infra, solar, and defence players reported large project wins and new JV formations.

Neutral Earnings and Regulatory Developments Temper Market Enthusiasm

Despite strong corporate earnings from several quarters, some companies posted muted or flat performances, while regulatory news impacted sentiment marginally.

Neutral Q4 Results:

• Texmaco Rail, Sai Silks, Divi’s Labs, Galaxy Surfactants, Repco Home Finance, and Vasa Denticity reported flat or marginally lower earnings.

• Heritage Foods and Western Carriers witnessed YoY declines in profit despite revenue upticks.

• Bharat Bijlee, Happy Forgings, and Max Healthcare showed stable performance.

Developments:

• JSW Steel to consider long-term fundraise on May 23.

• Tube Investments announced July 25 as record date for final dividend of ₹1.50 per share.

• Vedanta hit with a ₹145.95 Cr tax penalty in Visakhapatnam.

• Cipla’s subsidiary received VAI classification from USFDA for Navi Mumbai plant inspection.

Highlights:

• Mixed earnings reflected across textiles, pharma, and capital goods.

• Regulatory updates led to stock-specific moves, but not broad market disruption.

Select Negative Triggers Emerge Despite Broad Market Strength

A handful of negative earnings reports and corporate developments weighed on sector-specific stocks. Most notable was the steep decline in profitability reported by key firms and leadership exits.

Notable Negative Updates:

• Credit Access Grameen: Net Profit fell to ₹47 Cr from ₹397 Cr, significant miss.

• Shipping Corporation of India: Net fell to ₹185 Cr from ₹307 Cr; revenue also dropped.

• Gujarat Ambuja Exports: Profit dropped to ₹31.9 Cr from ₹91.4 Cr.

• Systematix Corporate Services: Net Profit plummeted to ₹3.29 Cr from ₹23.19 Cr.

• Gensol Engineering: CFO resigned citing regulatory challenges.

Highlights:

• Major profit decline reported in financials, logistics, and commodity exporters.

• Gensol’s CFO exit signals possible compliance or strategic concerns.

• Hindustan Zinc hit with ₹146 Cr tax penalty, adding to sector headwinds.