Stock Market Performance
Sectoral Trends:
Pharmaceuticals: The sector dropped 1.5% amid concerns over a U.S. executive order aimed at boosting domestic drug manufacturing, which could impact Indian exporters .
Financials: Financial stocks fell by 0.7%, with notable declines in companies like Adani Enterprises and Jio Financial, each dropping around 4% .
Automobiles: Contrarily, Mahindra & Mahindra's shares rose by 3.1% following better-than-expected quarterly results, leading gains in the auto sector .
Mid and Small Caps: The Nifty Next 50 index declined by 2.42%, indicating broader market weakness beyond the large-cap stocks .
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ЁЯУК IPO Market Slowdown
India's IPO market is witnessing a significant slowdown due to global economic uncertainties and geopolitical tensions. At least two major IPOs—Avanse Financial Services ($356 million) and Anthem Biosciences ($403 million)—are expected to be delayed. Ather Energy's recent IPO, despite proceeding, saw its stock fall after debuting, reflecting investor caution towards the EV sector .
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ЁЯМР Macroeconomic Outlook
Growth Projections: Moody's has revised India's GDP growth forecast for 2025 downward to 6.3% from 6.5%, citing global economic slowdown driven by U.S. policy uncertainties and trade restrictions . Deloitte forecasts annual growth between 6.3% and 6.5% for fiscal 2024–2025 .
Geopolitical Risks: Tensions between India and Pakistan are adding to the economic uncertainty, potentially impacting investor confidence and economic stability .
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ЁЯдЭ Trade Developments
India and the UK have finalized a significant free trade agreement projected to boost the UK economy by £5 billion annually. The agreement will reduce Indian tariffs on British exports, including a reduction in whisky and car tariffs by up to 90%. In return, Britain agreed to concessions such as exempting Indian workers in the UK from national insurance .
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ЁЯФо Investor Sentiment and Outlook
Despite the current challenges, some analysts believe the positive trend might extend to May, with a possibility of minor pullbacks but not a downtrend. Historically, the adage 'Sell in May and go away' has not held true for the Indian market, with positive returns in May observe
d in 7 out of the last 10 years .
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