Stocks set to open lower amid tepid Asian cues

GIFT Nifty:

GIFT Nifty June 2025 futures were trading 64 points lower in early trade, suggesting a negative opening for the Nifty 50.

Economy:

India's GDP growth touched a four-quarter high of 7.4% in Q4 FY25, with full-year growth ending at 6.5%, according to data released by the government post market hours Friday. The GDP growth, higher than the previous quarter of 6.4%, was lower than the 8.4% growth logged in Q4 FY24.

Meanwhile, India's fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate, according to data released by the Comptroller General of Accounts on Friday. The central government's fiscal deficit stood at Rs 15.77 lakh crore, or 100.5% of the revised annual target, compared with 95.4% a year before.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth 6,449.74 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 9,095.91 crore in the Indian equity market on 30 May 2025, provisional data showed.

According to NSDL data, FPIs have bought shares worth Rs 18082.82 crore in the secondary market during May 2025. This follows their purchase of shares worth Rs 3243.03 crore in April 2024.

Global Markets:

US Dow Jones futures were down 124 points, signaling a weak start for Wall Street.

Asian shares were trading lower Monday after U.S. President Donald Trump announced a fresh tariff hike on steel imports, sending jitters across global markets. Speaking to U.S. steelworkers late Friday, Trump said he would double tariffs on steel from 25% to 50%, effective Wednesday, June 4.

Markets in China, Malaysia, and New Zealand were closed for holidays, muting some of the early regional reactions.

Trump also took to Truth Social to confirm the June 4 rollout, claiming the hike was in response to China's alleged breach of a recent trade agreement. He didn't elaborate on how the deal was violated but added that he plans to speak with Chinese President Xi Jinping 'soon.'

Wall Street ended last week on a mixed note. The S&P 500 was nearly flat, inching down 0.01% to close a strong month. The Nasdaq Composite slipped 0.32%, while the Dow Jones eked out a 0.13% gain.

Commerce Secretary Howard Lutnick backed the tariff decision over the weekend, saying the measures were 'not going anywhere', even as they face stiff legal resistance. A federal trade court had recently blocked much of Trump's tariff plans, but an appeals court swiftly reinstated them. The case now looks poised to head to the Supreme Court.

Trump, undeterred, hinted he'd use alternative mechanisms to enforce the tariffs if necessary. This legal showdown is unfolding just weeks ahead of a key July deadline to ink new trade deals. If those talks fall through, Trump has threatened sweeping new tariffs on several major economies.

Domestic Market:

Domestic equity benchmarks closed with modest losses Friday as investors adopted a cautious stance ahead of India's GDP data release. Sentiment was also weighed down by global trade uncertainties after a U.S. federal appeals court upheld tariff measures introduced during President Trump's tenure. The S&P BSE Sensex declined 182.01 points or 0.22% to 81,451.01. The Nifty 50 index shed 82.90 points or 0.33% to 24,750.70.

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