Barometers turn rangebound; auto shares skid

The key domestic indices traded within a narrow range but remained in the negative territory in mid-morning trade. Market sentiment remained subdued amid weak global cues, with concerns that the U.S. budget bill could significantly increase the national debt, potentially threatening the country's status as a global safe haven and triggering risk-off mood among investors. Traders are expected to monitor global bond markets and fiscal developments closely in coming days. The Nifty hovered below the 24,600 level.

Auto shares slide after rising in the past trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex, fell 745.67 points or 0.91% to 80,850.93. The Nifty 50 index tumbled 218.20 points or 0.88% to 24,595.40.

In the broader market, the S&P BSE Mid-Cap index declined 0.47% and the S&P BSE Small-Cap index rose 0.05%.

The market breadth was negative. On the BSE, 1,660 shares rose and 1,981 shares fell. A total of 184 shares were unchanged.

IPO Update:

The initial public offer of Belrise Industries received bids for 20,48,64,252 shares as against 17,70,58,824 shares on offer, according to stock exchange data at 11:15 IST on 22 May 2025. The issue was subscribed 1.16 times.

The issue opened for bidding on 21 May 2025 and it will close on 23 May 2025. The price band of the IPO is fixed between Rs 85 and 90 per share. An investor can bid for a minimum of 166 equity shares and in multiples thereof.

The initial public offer of Borana Weaves received bids for 18,17,53,797 shares as against 36,89,457 shares on offer, according to stock exchange data at 11:51 IST on 22 May 2025. The issue was subscribed 49.26 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.

Buzzing Index:

The Nifty Auto index declined 1.33% to 23,384.80. The index advanced 0.72% in the past trading session.

Ashok Leyland (down 2.29%), Mahindra & Mahindra (down 2.1%), Bajaj Auto (down 1.81%), Maruti Suzuki India (down 1.4%), Tata Motors (down 1.35%), Eicher Motors (down 1.3%), TVS Motor Company (down 0.96%), Samvardhana Motherson International (down 0.73%), Hero MotoCorp (down 0.47%) and MRF (down 0.41%) declined.

Bajaj Auto fell 1.81%. The company has announced a strategic step to gain majority control in KTM AG, the Austrian motorcycle manufacturer, through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV).

Stocks in Spotlight:

Oil India slipped 2.36% after the company's net profit declined 21.56% to Rs 1,591.48 crore in Q4 FY25, compared with Rs 2,028.83 crore in Q4 FY24. Revenue from operations (excluding excise duty) was marginally down 0.15% at Rs 5,518.86 crore.

National Aluminium Company (NALCO) added 1.79% after the company reported a 104.59% surge in standalone net profit to Rs 2,078.37 crore in Q4 FY25, compared with Rs 1,015.83 crore in Q4 FY24. Revenue from operations jumped 47.18% YoY to Rs 5,267.83 crore in the quarter ended 31st March 2025.

Global Markets:

European markets are expected to open lower. Investors will be closely watching earnings reports from EasyJet, BT, British Land, and Tate & Lyle on Thursday. Additionally, preliminary Purchasing Managers' Index (PMI) data for France and the U.K. is scheduled to be released.

Most Asian markets declined on Thursday, mirroring overnight losses on Wall Street. Investor sentiment was impacted by concerns that a proposed U.S. budget bill could significantly increase the national debt.

In Japan, the manufacturing sector contracted for the eleventh consecutive month in May, according to preliminary data from the au Jibun Bank flash manufacturing Purchasing Managers' Index (PMI). The index registered at 49.0 for the first three weeks of May, slightly improving from 48.7 in April but remaining below the 50-mark that separates growth from contraction.

In the United States, all three major stock indices closed lower on Wednesday. The Dow Jones Industrial Average fell 1.91%, the S&P 500 dropped 1.61%, and the Nasdaq Composite declined 1.41%. The market selloff was attributed to a sharp rise in Treasury yields amid concerns that the proposed budget bill could increase fiscal pressure.

The proposed legislation, which includes tax cuts and spending measures, is reportedly facing resistance from within the Republican party. Analysts estimate the bill could add between $3 trillion and $5 trillion to the current U.S. debt, which stands at $36.2 trillion. The development follows a recent credit rating downgrade by Moody's, citing concerns over the rising national debt.

In corporate news, Alphabet Inc. shares rose more than 2% following the company's announcement of new AI-related products and initiatives aimed at maintaining its competitive edge in the sector.

Microsoft Corporation traded slightly lower after disclosing that approximately 394,000 Windows devices worldwide had been infected by the Lumma malware.

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