Indian equity benchmarks opened weaker on Friday, retreating from recent highs as caution set in ahead of the release of the country’s Q4 FY24 GDP data later in the day. Despite continued strength in foreign inflows and optimism around domestic growth and monetary policy, broader sentiment was dampened by mixed global cues and resurfacing tariff risks from the U.S.
Highlights:
Sensex down 243 points at 81,389.93; Nifty falls 71 points to 24,761.75 as of 11 a.m.
FPI inflows remain robust at ₹8.84 billion on Thursday and $2.6 billion for May 2025.
Domestic institutional investors (DIIs) maintain their eight-day buying streak.
Markets cautious ahead of Q4 GDP data and possible RBI rate cut next week.
Tariff Jitters and Weak Global Sentiment Drag Market Momentum
The weak tone in Indian equities mirrored Asian peers, where most indices struggled amid renewed concerns over the reinstatement of U.S. global tariffs. Wall Street’s overnight gains, led by Nvidia, failed to lift Indian sentiment, with the reimposition of duties by the Trump administration contributing to a subdued risk appetite globally. The U.S. appeals court decision reinstating these tariffs added further pressure on trade-sensitive sectors like metals and IT, which emerged as key drags during early trade in India.
Highlights:
Global trade worries resurface as U.S. reinstates Trump-era tariffs.
Metal and IT stocks among the worst performers in early trade.
Asian markets trade mixed; oil prices headed for a weekly drop.
Broader Markets Outperform; Volatility Continues to Subside
Despite the downtrend in benchmarks, broader indices continued to show resilience. Midcaps and smallcaps outpaced large caps, underpinned by strong domestic liquidity and a retreat in India VIX, which signals improving investor confidence. The divergence between frontline indices and the broader market reflects selective buying in specific sectors on earnings strength and fundamental momentum.
Highlights:
India VIX cools further, indicating declining volatility expectations.
Midcap and smallcap indices outperform benchmark indices.
Stock-specific rallies and Q4 earnings driving select counters.
Sectoral Impact: Tech, Metals Slide; Infra, Auto Lend Support
Among Sensex constituents, IT majors like Infosys, TCS, Tech Mahindra, and HCL Tech led the decline, alongside IndusInd Bank and M&M. The technology sector remained under pressure due to concerns over export outlook amid global macro uncertainty. Conversely, infrastructure and auto names such as Larsen & Toubro, Maruti, and Adani Ports posted modest gains, offering partial support to the indices.
Highlights:
Infosys, Tech Mahindra, HCL Tech among top drags.
Adani Ports, Sun Pharma, Nestle, and L&T among top gainers.
Metals and IT sectors witness the most selling pressure.
Stock Highlights: Suzlon Surges, Ola Electric Plunges Post Earnings
Stock-specific action was notable across the board, driven by Q4 earnings. Suzlon Energy rallied 13% after reporting a 365% YoY jump in net profit, while Sobha Ltd. gained 7% on a sixfold increase in its bottom line. Mazagon Dock fell 8% following a 51% YoY decline in Q4 profit, and Ola Electric slumped 10% after it reported widening losses. The mixed results highlighted the divergence in earnings recovery across sectors.
Highlights:
Suzlon Energy jumps 13% on strong Q4 earnings.
Sobha gains 7% as net profit rises nearly 6x YoY.
Mazagon Dock falls 8% on sharp drop in quarterly profits.
Ola Electric drops 10% after doubling of net losses.
Top Gainers and Losers (11:00 A.M.)
Gainers:
Rallis India Ltd: +9.03%
Gujarat Pipavav Port Ltd: +8.58%
MMTC Ltd: +7.22%
Elgi Equipments Ltd: +7.07%
Engineers India Ltd: +6.30%
Losers:
Welspun Living Ltd: -5.73%
ITI Ltd: -5.01%
SJVN Ltd: -4.76%
Amara Raja Energy & Mobility Ltd: -4.65%
KNR Constructions Ltd: -4.13%
Awaited GDP Data, RBI Policy Loom Over Market Outlook
The Q4 FY24 GDP print, expected later today, will be critical for market sentiment, especially as it comes just days ahead of the RBI’s monetary policy meeting. Investors are positioning cautiously, with many anticipating that a strong GDP number could increase the likelihood of a rate cut in June, especially amid softening inflation trends and rising FPI interest.
Highlights:
Q4 FY24 GDP data to be released post-market today.
Strong GDP print may strengthen case for June RBI rate cut.
Investors bracing for key macroeconomic cues next week.
