Markets rebound to finish flat; HCL Tech, Bajaj Auto lead; SBI, RIL lag
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Indian equities ended flat today after a volatile session triggered by fresh U.S. tariffs on solar imports from India. The Nifty index closed at 25,482.50, up by 57.85 points or 0.23%. The Sensex closed at 82,276.07, rising by 50.15 points or 0.06%.
Reacting to the news, solar stocks saw the steepest decline in today's trade. Waaree Energies fell by 10.33%, whereas Premier Energies rebounded from the fall to close comparatively lower at 5.9%. Solex Energy fell 7.7% and Websol Energy System slipped 6.6%.
The US on Wednesday imposed a countervailing duty of up to 126% on Indian solar products, a move that could complicate ongoing efforts to deepen bilateral trade ties between New Delhi and Washington. The action follows a review by the US Commerce Department, which concluded that Indian manufacturers benefited from state support that allowed them to price their products below US-made alternatives.
Similar measures have also been announced against other exporting nations, with preliminary duties ranging from 86% to 143% on imports from Indonesia and 81% on shipments from Laos.
The move comes just weeks after India and the US agreed on a broad framework for a trade arrangement aimed at reducing tariffs on Indian exports to around 18%, down from nearly 50% earlier. However, that plan was disrupted after the US Supreme Court struck down earlier Trump-era tariffs, prompting the administration to introduce a new baseline import duty of 10%, with scope for further increases.
How did the markets react?
HCL Technologies and Bajaj Auto led the Nifty index, rising by 2.72% each. Tata Steel trailed closely, advancing by 2.43%. Other companies like Shriram Finance and TCS also traded in the green.
Meanwhile, SBI and Reliance Industries declined by 1.92% each, dragging the 50-constituent index down. Other stocks that were laggards in today’s trade were ITC, Bharti Airtel, and Adani Ports.
On the sectoral front, metals and auto were the top gainers, rising to 2%. Healthcare and pharma also noted decent gains, advancing between 1.50% and 1.85%. On the other hand, FMCG, realty and PSU Bank were down to 0.30%.
Broader indices outperformed the benchmark indices, with the Nifty Midcap index adding 0.5%, and the smallcap index rising 1%.
Ponmudi R, CEO of Enrich Money, says that the markets’ broader undertone remained measured, as investors refrained from aggressive positioning amid the absence of strong domestic triggers and mixed global cues. “Sectoral participation was selective throughout the session. Banking and select large-cap stocks provided stability, while the IT sector showed early signs of recovery through selective buying and short covering following recent weakness. However, the rebound in IT remained gradual rather than broad-based, indicating an improvement in sentiment but not yet confirming a sustained trend reversal.”