Sensex drops 873 pts, Nifty ends below 24,700 as FIIs pull the plug

Benchmark equity indices ended sharply lower today, logging a third consecutive session of losses. Investor sentiment took a knock after Moody's downgraded the U.S. government's credit rating from AAA to Aa1, citing concerns over rising debt levels. Adding to the pressure, foreign institutional investors (FIIs) turned net sellers in the previous session, a rare event not seen in over a month. The Nifty slipped below the 24,700 mark, with all NSE sectoral indices closing in the red. Auto, FMCG, and pharma stocks bore the brunt of the sell-off, leading the market-wide decline.

The S&P BSE Sensex, tumbled 872.98 points or 1.06% to 81,186.44. The Nifty 50 index declined 261.55 points or 1.05% to 24,683.90. In the past three trading session the Sensex and Nifty declined 1.63% and 1.51%

In the broader market, the S&P BSE Mid-Cap index fell 1.65% and the S&P BSE Small-Cap index shed 0.96%.

The market breadth was weak. On the BSE, 1435 shares rose and 2534 shares fell. A total of 135 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.17% to 17.39.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.14% to 6.222.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.6350, compared with its close of 85.4200 during the previous trading session.

MCX Gold futures for 5 June 2025 settlement rose 0.26% to Rs 93,542.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 100.31.

The United States 10-year bond yield fell 0.45% to 4.455.

In the commodities market, Brent crude for July 2025 settlement fell 17 cents or 0.26% to $65.37 a barrel.

Global Markets:

European shares advanced on Tuesday as investors awaited Germany's producer price index data.

Most Asian stocks ended higher as Australia's central bank cut its policy rate to 3.85%, its lowest level since May 2023, as inflation concerns in the country continue to recede, giving room for the bank to ease monetary policy.

The People's Bank of China reduced its key lending rates by 10 basis points in an effort to support economic growth amid ongoing trade tensions. The 1-year loan prime rate was lowered from 3.1% to 3.0%, while the 5-year LPR, commonly used for mortgage pricing, was cut from 3.6% to 3.5%.

In equity markets, shares of Contemporary Amperex Technology, the world's largest battery manufacturer, rose over 11% during their trading debut in Hong Kong.

Meanwhile, U.S. markets closed higher overnight. The S&P 500 gained 0.09%, extending its winning streak to six sessions as Treasury yields eased and investors looked past Moody's recent downgrade of the U.S. credit outlook.

The Dow Jones Industrial Average rose 0.32%, supported by an 8% rebound in UnitedHealth following recent losses. The Nasdaq Composite edged up 0.02%.

Stocks in Spotlight:

Hindalco Industries advanced 0.7% after the company's consolidated net profit jumped 66.45% to Rs 5,283 crore on 15.89% increase in revenue from operation to Rs 64,890 crore in Q4 FY25 compared with Q4 FY24.

Pfizer soared 10.78% after the company's adjusted net profit rose 10.89% to Rs 198.33 crore while net sales rose 8.28% to Rs 591.91 crore in Q4 March 2025 over Q4 March 2024.

Power Grid Corporation of India declined 2.01% after the company's consolidated net profit fell marginally to Rs 4,142.87 crore in Q4 FY25 as against Rs 4,166.33 crore posted in Q4 FY24. However, revenue from operations rose 2.48% YoY to Rs 12,275.35 crore recorded in the quarter ended 31 March 2025.

Acme Solar Holdings declined 3.49% after the company reported a 76.82% decline in consolidated net profit to Rs 123.36 crore in Q4 FY25, compared to Rs 532.39 crore in Q4 FY24. Despite the steep drop in profitability, the company's revenue from operations surged 64.95% to Rs 486.89 crore during the quarter.

Restaurant Brands Asia rallied 5.56% after the company's consolidated net loss reduced to Rs 60.44 crore in Q4 FY25 from a net loss of Rs 92.09 crore posted in Q4 FY24. However, revenue from operations advanced 5.92% YoY to Rs 632.55 crore in Q4 FY25.

DLF rose 2.2% after the real estate giant reported a 37% year-on-year rise in consolidated net profit to Rs 1,268 crore for the quarter ended March 2025. Revenue from operations also surged 46% to Rs 3,128 crore compared to Q4 FY24.

HLE Glascoat hit an upper limit of 20% after the company's consolidated net profit soared 113.8% to Rs 31.64 crore while revenue from contract with customers rose 8.7% to Rs 333.70 crore in Q4 March 2025 over Q4 March 2024.

Honda India Power Products hit an upper limit of 20% after the company's net profit soared 128.86% to Rs 36.16 crore while net sales rose 16.23% to Rs 268.68 crore in Q4 March 2025 over Q4 March 2024.

IRB Infrastructure Developers slipped 2.03%. The company's consolidated net profit increased 13.68% to Rs 214.72 crore in Q4 FY25 as against Rs 188.88 crore posted in Q4 FY24. However, revenue from operations rose 4.26% to Rs 2,149.24 crore in the fourth quarter of FY25 as against Rs 2,061.24 crore reported in Q4 FY24.

JK Paper declined 2.05% after its consolidated net profit tumbled 72.35% to Rs 76.20 crore in Q4 FY25 as against Rs 275.64 crore posted in same quarter last year. Revenue from operations shed 1.69% year on year (YoY) to Rs 1,689.50 crore in the quarter ended 31 March 2025.

NLC India rallied 1.8% after its consolidated net profit zoomed 321.83% to Rs 481.96 crore on 8.34% increase in revenue from operations to Rs 3,836 crore in Q4 FY25 over Q4 FY24.

Eris Lifesciences added 1.36% after the company's consolidated net profit jumped 32.1% to Rs 93.84 crore on 28.4% increase in revenue from operations to Rs 702.60 crore in Q4 FY25 over Q4 FY24.

IPO Update:

The initial public offer of Borana Weaves received bids for 3,06,43,245 shares as against 36,89,457 shares on offer, according to stock exchange data at 16:33 IST on 20 May 2025. The issue was subscribed 8.31 times.

The issue opened for bidding on 20 May 2025 and it will close on 22 May 2025. The price band of the IPO is fixed between Rs 205 and 216 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.

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