Indian Benchmark Indices Ends Lower; IT and Bank Stocks Drag While Hero MotoCorp Shines on Q4 Results

BSE Sensex dropping 1.55 per cent to close at 81,148.22 and the Nifty 50 falling 1.39 per cent to settle at 24,578.35.

Market Update at 4:15 PM: On May 13, 2025, the domestic markets witnessed a sharp decline, with the BSE Sensex dropping 1.55 per cent to close at 81,148.22 and the Nifty 50 falling 1.39 per cent to settle at 24,578.35. The weakness was primarily due to profit booking and concerns over foreign capital possibly moving to China after its recent trade agreement with the U.S.

The Bank Nifty index lost 0.8 per cent and ended below the 55,000 mark, giving up part of its previous day’s gains. Heavyweight stocks like HDFC Bank, ICICI Bank, and Reliance Industries each fell over 1 per cent, reversing part of their 3.5–4.5 per cent rally from Monday.

Swiggy shares continued to slide, hitting a new post-listing low, likely influenced by the conclusion of its lock-in period.

Meanwhile, the Nifty Pharma index stood out, rising 1.55 per cent. Market participants responded positively to a U.S. executive order on drug pricing, which turned out to be more moderate than initially anticipated.

India’s CPI-based retail inflation dropped to 3.16 per cent in April 2025, down from 3.34 per cent in March, marking the lowest inflation reading since July 2019.

Hero MotoCorp released its Q4 earnings, reporting Rs 9,970 crore in consolidated revenue—a 4 per cent year-on-year increase. Profit After Tax rose 24 per cent to Rs 1,169 crore, with quarterly sales hitting 13.81 lakh units. For the full year, revenue touched an all-time high of Rs 40,923 crore, and PAT stood at Rs 4,376 crore, up 17 per cent from FY24. The company declared a final dividend of Rs 65 per share.

The Nifty IT index emerged as the worst performer, slipping 2.4 per cent after a strong surge of 6.7 per cent on Monday. Infosys alone dragged the index down by losing over 3.5 per cent.

Among individual Nifty contributors, Divi’s Laboratories, Sun Pharma, and Hero MotoCorp added the most points. In contrast, Infosys, ICICI Bank, and HDFC Bank were key drags on the index.

Mid-Cap and Small-Cap indices stayed positive, inching up by 0.19 per cent and 0.81 per cent, respectively. Four out of 17 sectoral indices closed in the green.

Out of 2,959 stocks traded on the NSE, 1,948 advanced, 937 declined, and 74 remained unchanged—indicating a positive market breadth. Additionally, 43 stocks hit fresh 52-week highs, while 10 slipped to their 52-week lows. A total of 199 stocks were locked in upper circuits, with 31 hitting lower circuits.

Market Update at 2:30 PM: India’s key benchmark indices, the NSE Nifty 50 and BSE Sensex, declined by about 1 per cent each, as investors chose to lock in profits following the previous day’s relief-driven rally sparked by the India-Pakistan ceasefire.

The shift in investor sentiment may also be linked to short-term fund rotation from India to China, following the temporary easing of the U.S.-China trade conflict, potentially triggering further profit-taking.

The Nifty IT index fell by 1.7 per cent after a strong 6.7 per cent surge on Monday — its best single-day performance in five years.

Major index heavyweights — HDFC Bank, ICICI Bank, and Reliance Industries — each slipped around 1 per cent, after rallying between 3.5 per cent and 4.5 per cent in the previous session.

Online food delivery platform Swiggy continued to weaken, hitting its lowest level since listing, as investor concerns around lock-in expiry weighed on the stock.

On the positive side, the Nifty Pharma index climbed 1.6 per cent.
 

Market Update at 12:30 PM: India’s key stock indices opened lower on Tuesday as investors opted to lock in gains following a sharp rally in the previous session. The Nifty 50 slipped 0.78 per cent to 24,734, while the BSE Sensex declined 0.96 per cent to 81,643 by 12:22 p.m. IST.

Despite the overall decline, small-cap and mid-cap stocks showed resilience, with the Nifty Small-cap and Nifty Mid-cap indices rising 0.6 per cent and 0.75 per cent, respectively. Sectors such as defence and shipbuilding continued to gain on expectations of increased orders in the aftermath of the India-Pakistan tensions.

The market may enter a consolidation phase after Monday’s nearly 4 per cent surge driven by the announcement of a ceasefire and a cooling of geopolitical tensions. 

India had witnessed renewed foreign inflows in March, which gained momentum through April and May, reversing a trend of heavy selling since last September. Investors are now eyeing the April inflation numbers, which are scheduled for release post-market hours.

Meanwhile, pharma stocks stood out with a 1.6 per cent gain, supported by relief that a recent U.S. executive order on drug pricing was not as adverse as initially anticipated.

Market Update at 10:15 AM: India’s benchmark indices opened lower on Tuesday, pulling back after a strong rally the previous day that marked their best performance in over four years. The Nifty 50 declined by 0.52 per cent to 24,784.95, while the BSE Sensex fell 0.64 per cent to 81,900.2 as of 9:25 a.m. IST.

At the market open, eight out of the 13 key sectoral indices were trading in the red. However, broader market indices showed resilience, with both the Smallcap and Midcap gaining around 0.2 per cent each.

On Monday, markets had surged nearly 4 per cent in a broad relief rally after a ceasefire agreement between India and Pakistan eased geopolitical tensions. 

Global cues remain supportive, with improved investor sentiment after the U.S. and China agreed to ease trade tensions by suspending certain tariffs and seeking cooperation to avoid economic disruption.

Investor attention is now turning toward India’s inflation figures for April, scheduled for release after market hours today.

Pre-Market Update at 8:00 AM: Domestic equity benchmarks Sensex and Nifty 50 are expected to start Tuesday’s session on a quiet note after a significant rally in the previous trading session. 

The Gift Nifty, as of 07:20 am, hovered near the 24,920 level, reflecting a discount of about 155 points compared to the previous Nifty 50 close, indicating a likely negative start. However, positive cues from global markets, including progress on a US-China trade agreement and signs of de-escalation between India and Pakistan, may help retain some investor confidence.

Asian markets opened higher, mirroring the strong overnight performance of US indices. On Wall Street, the Dow Jones surged 1,160.72 points or 2.81 per cent to close at 42,410.10. The S&P 500 gained 184.28 points or 3.26 per cent to end at 5,844.19, while the Nasdaq Composite advanced 779.43 points or 4.35 per cent to finish at 18,708.34, driven by news of a temporary tariff reduction between the US and China.

On the geopolitical front, top military officials from India and Pakistan agreed to uphold the ceasefire and avoid hostile actions, contributing to improved sentiment in Indian markets. 

The previous day, the Sensex had surged 2,975 points to close at 82,429.90 and the Nifty rose 916 points to end at 24,924.70, marking their strongest single-day performance in four years. Factors such as the improving geopolitical situation, early monsoon forecasts, and progress in global trade talks supported the rally.

Today, key earnings results from Bharti Airtel, Tata Motors, GAIL India, Cipla, Siemens, Bharti Hexacom, Hero Motocorp, and Aditya Birla Capital are expected, which could lead to stock-specific movements. 

On May 12, Foreign Institutional Investors were net buyers with inflows of Rs 1,246.48 crore, while Domestic Institutional Investors bought shares worth Rs 1,448.37 crore. Despite this, FIIs ended a 16-session buying streak and remained net sellers in the preceding trading sessions.

In the commodities segment, gold prices held steady due to improved risk appetite, with spot gold trading around USD 3,235.37 per ounce. Crude oil prices eased slightly after recent gains. Brent crude fell 0.32 per cent to USD 64.75 per barrel and WTI crude slipped 0.31 per cent to USD 61.76. The US dollar continued its upward momentum after the trade deal, with the dollar index hovering near a one-month high at 101.67. 

US Treasury yields also moved higher, with the two-year yield at 3.9977 per cent and the ten-year benchmark at 4.4551 per cent.

For today, CDSL and Mannapuram Finance continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.