Indian Markets Open Lower as Geopolitical Tensions Trigger Caution
Indian benchmark indices witnessed a mild decline in early trade on Thursday, snapping a seven-session winning streak. Investor sentiment was dented by renewed geopolitical tensions following the Indian government’s diplomatic response to a recent terror attack in Pahalgam. At 10:15 AM, the BSE Sensex slipped 98.29 points or 0.12 percent to 80,018.20, while the NSE Nifty 50 fell 31.80 points or 0.13 percent to 24,297.15. The decline was largely attributed to profit-booking and broader caution across global markets.
Geopolitical unease dampened investor risk appetite, prompting selective selling across heavyweight sectors. Global market cues were mixed, adding to the cautious tone. Broader Asian markets also saw declines, with investors assessing economic signals from the U.S. and China alongside mounting global tensions.
Highlights:
Sensex Down: Falls 98.29 points to 80,018.20.
Nifty 50 Lower: Slips 31.80 points to 24,297.15.
Geopolitical Risk: India’s diplomatic measures against Pakistan weigh on sentiment.
Asian Market Trend: Regional indices show mixed movement.
Sectoral Trends: Financials and Oil & Gas Drag, Pharma and PSU Banks Resist
Across sectors, the Nifty Financial Services, Auto, Metal, Realty, and Oil & Gas indices posted losses, reflecting the market’s risk-off sentiment. Reliance Industries and several leading banks came under selling pressure, influencing index performance. Meanwhile, defensive buying supported Nifty Pharma and PSU Bank indices, which managed to stay in positive territory in the morning session.
The underperformance of rate-sensitive sectors also hints at potential volatility ahead of upcoming domestic and global central bank policy cues. Investors appear to be rotating funds from high-beta sectors into relatively stable segments such as pharmaceuticals and public sector banks.
Highlights:
Lagging Sectors: Financials, Auto, Realty, Oil & Gas underperform.
Positive Momentum: Pharma and PSU Banks gain amid cautious outlook.
Reliance Impact: Weighs heavily on index due to weak sentiment.
Stock-Specific Action: Gainers and Losers in Focus
Despite the broader market weakness, select stocks demonstrated notable moves. IndusInd Bank and Nestle India emerged as key gainers, defying the downtrend. On the flip side, Tata Consumer Products dropped 4% after reporting its Q4 FY25 earnings, even though it posted a significant year-on-year jump in profit.
Other key movers included Bajaj Housing Finance, which surged 4% following its impressive Q4 results where net profit rose 54% year-on-year. LTIMindtree declined 2% post weak quarterly earnings, prompting Nuvama to revise its target price downward. Biocon slipped 3% after announcing a large-scale fundraise plan of Rs 4,500 crore.
Highlights:
Top Gainers: IndusInd Bank, Nestle India, Bajaj Housing Finance (+4%).
Top Losers: Tata Consumer (-4%), LTIMindtree (-2%), Biocon (-3%).
Earnings Reactions: Stocks move sharply post Q4 disclosures.
Q4 Earnings Updates: Mixed Results Across Sectors
The Q4 FY25 earnings season continued to produce mixed results. Hindustan Unilever (HUL) reported a modest 4% rise in PAT at Rs 2,493 crore, with revenue increasing 2% year-on-year. Conversely, Nestle India reported a 5% decline in standalone net profit to Rs 885 crore, reflecting margin pressures and slower volume growth.
Mid-cap and small-cap counters also displayed strong financial performances. Sahaj Solar recorded a 66% YoY increase in sales and more than doubled its net profit. Refex Industries posted an 84% jump in quarterly sales, although profit was down 4% quarter-on-quarter. Aimtron, a niche electronics firm, doubled both sales and profits YoY but saw a narrowing in profit margins in the latest half-year results.
Highlights:
HUL Q4 PAT: Up 4% to Rs 2,493 crore; revenue growth muted at 2%.
Nestle India Q4 Profit: Down 5% YoY to Rs 885 crore.
Sahaj Solar: Sales up 66%, net profit up 2.1x.
Refex Industries: 84% YoY sales growth.
Aimtron: Strong topline, margin pressure noted.
New Orders and Fundraising Activity Boost Select Companies
Several companies made announcements regarding large-scale orders and capital-raising initiatives, attracting investor attention. EFC secured a significant turnkey interior fit-out project worth Rs 183 crore, showcasing its project execution capabilities. Vascon Engineers bagged two Letters of Intent amounting to Rs 310 crore for construction projects in Goa and Pune.
Utssav CZ approved a preferential issuance of 11.8 lakh fully convertible warrants at Rs 222 apiece, aggregating Rs 26.2 crore. The issuance was directed toward both promoters and non-promoters, indicating strategic capital infusion plans for growth.
Highlights:
EFC: Secures Rs 183 crore interior fit-out project.
Vascon: Bags Rs 310 crore worth of construction LoIs.
Utssav CZ: Approves Rs 26.2 crore fundraise via warrants.
Global Market Sentiment Remains Mixed
Globally, market sentiment remained tepid with varied movements across major indices. U.S. S&P 500 futures inched up 0.2%, suggesting cautious optimism. In Asia, Japan’s Nikkei 225 futures rose 0.7%, while the Hang Seng futures fell 0.4%, indicating divergent regional risk profiles. Australia’s S&P/ASX 200 also posted a 0.5% gain, buoyed by resource stocks. European markets showed mild positivity, with Euro Stoxx 50 futures rising 0.2%.
Investors globally are balancing geopolitical risks, mixed corporate earnings, and macroeconomic signals from the U.S. and China ahead of key central bank announcements.
Highlights:
S&P 500 Futures: Up 0.2%.
Nikkei Futures: Gain 0.7%; Hang Seng Futures down 0.4%.
ASX 200: Advances 0.5%.
Euro Stoxx 50 Futures: Rise 0.2%.
