The key equity indices traded with moderate gains in mid-morning trade, supported by U.S. President Donald Trump initially issuing and then softening threats of increased tariffs on European imports over the weekend and by the Reserve Bank of India's decision to pay Rs 2.68 lakh crore as a dividend to the central government for FY25. Investors will closely monitor global trade developments and the upcoming Q4 results of the companies across various sectors. The Nifty hovered above the 24,950 mark.
IT shares rallied for a second consecutive trading session.
At 11:25 IST, the barometer index, the S&P BSE Sensex, added 479.66 points or 0.59% to 82,200.74.The Nifty 50 index advanced 133.10 points or 0.54% to 24,987.95.
In the broader market, the S&P BSE Mid-Cap index advanced 0.52% and the S&P BSE Small-Cap index jumped 0.62%.
The market breadth was strong. On the BSE, 2,308 shares rose and 1,530 shares fell. A total of 218 shares were unchanged.
Economy:
The Reserve Bank of India (RBI) on Friday handed the government a whopping Rs 2.68 lakh crore in surplus for FY25, 27% more than last year and even higher than what the Union Budget had estimated. Analysts suggest that this additional amount could support the government’s objective of reducing the fiscal deficit to 4.4% for the current financial year.
IPO Update:
The initial public offer (IPO) of Schloss Bangalore received bids for 7,49,768 shares as against 4,66,10,169 shares on offer, according to stock exchange data at 11:22 IST on Monday (26 May 2025). The issue was subscribed 0.02 times.
The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 413 and 435 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.
The initial public offer (IPO) of Aegis Vopak Terminals received bids for 11,62,476 lakh shares as against 6,90,58,296 shares on offer, according to stock exchange data at 11:18 IST on Monday (26 May 2025). The issue was subscribed 0.02 times.
The issue opened for bidding on Monday (26 May 2025) and it will close on Wednesday (28 May 2025). The price band of the IPO is fixed between Rs 223 and 235 per share. An investor can bid for a minimum of 63 equity shares and in multiples thereof.
Buzzing Index:
The Nifty IT index advanced 0.86% to 37,723.75. The index rose 1.82% in two consecutive trading sessions.
Coforge (up 1.39%), Tech Mahindra (up 1.26%), HCL Technologies (up 1.14%), LTIMindtree (up 0.98%), Oracle Financial Services Software (up 0.82%), Infosys (up 0.82%), Wipro (up 0.73%), Tata Consultancy Services (up 0.64%), Mphasis (up 0.14%) and Persistent Systems (up 0.05%) advanced.
Stocks in Spotlight:
Allcargo Logistics declined 3.56% after the company reported a consolidated net loss of Rs 12.59 crore in Q4 FY25, compared to a net loss of Rs 5.64 crore in Q4 FY24.
Afcons Infrastructure fell 3.28% after the company’s consolidated net profit declined 23.4% to Rs 110.93 crore on an 11.4% fall in net sales to Rs 3,223.27 crore in Q4 FY25 over Q4 FY24.
Global Markets:
The US Dow Jones index futures were currently up by 346 points, signaling a strong opening for US stocks today.
Asian stocks were mixed on Monday after U.S. President Donald Trump issued and then softened threats of increased tariffs on European imports over the weekend. Japanese equities extended recent gains, while technology shares across the region, particularly those supplying Apple Inc., declined.
Investor sentiment was weighed down by concerns that Trump may impose a 25% tariff on all iPhones and other smartphones manufactured overseas. The remarks added pressure to tech stocks in Asia, many of which are key suppliers in Apple's global production chain.
Broader Asian markets also tracked the losses seen on Wall Street last Friday, when Trump initially announced plans to impose 50% tariffs on European Union goods. However, on Sunday, he stated that implementation would be delayed until July 9.
Reports indicate that Japanese trade officials will visit Washington in early June for a fourth round of bilateral trade discussions. Despite ongoing talks, Japan has maintained its position that the United States should remove all existing tariffs on Japanese exports.
U.S. market ended lower on Friday following the renewed trade rhetoric. The Dow Jones Industrial Average fell 0.61%, the S&P 500 dropped 0.67%, and the NASDAQ Composite declined 1%.
In a post on Truth Social, Trump stated that he would recommend a 50% tariff on all EU imports starting June 1, citing a lack of progress in trade negotiations. He wrote, "The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with," Trump said on Truth Social social media site. "Our discussions with them are going nowhere!"
Earlier in the year, the administration had imposed a series of tariffs on EU goods, including a 25% duty on automobiles, steel, and aluminium in March, followed by a 20% tariff on additional products in April. These were later reduced temporarily to allow space for further negotiations. In response, the EU suspended planned retaliatory tariffs and proposed eliminating duties on all industrial goods traded between the two sides.
Trump also announced that iPhones sold in the U.S. would need to be manufactured domestically or face a 25% import tariff. This marked the first time in 2025 that a specific company has been singled out in U.S. trade policy. Apple shares fell more than 3% in premarket trading, contributing to a broader decline in technology stocks.