Abhinav Tiwari Research Analyst at Bonanza
Today, the Indian equity benchmarks ended in the red, with the Sensex slipping about 245 points and the Nifty closing below the 25,700 mark, dragged by selling in large cap IT, autos and select financials amid rising global trade tensions and stock specific disappointments.
The negative close came despite resilience in broader markets, as midcap and smallcap indices outperformed and metal and PSU bank stocks stayed relatively firm.
Tata Elxsi was a key stock in focus, extending its post results correction. The stock fell 5% after Q3 FY26 numbers revealed a sharp decline in net profit on a YoY basis, impacted by the implementation of new labour codes and still elevated valuations. Despite sequential improvement in revenue and margins, multiple brokerages highlighted stretched multiples versus peers and uneven growth across verticals, prompting profit booking.
The broader metals space were relatively better placed, supported by firm commodity prices and hopes that domestic infrastructure and energy spending will cushion any external demand hit, even as export prospects to the US remain under a cloud due to higher reciprocal tariffs on several Indian goods.
US tariffs on Indian seafood under Trump’s trade policy remained a significant overhang. A steep effective tariff burden, particularly on shrimp exports, threatens margins and volumes for Indian seafood exporters, with industry studies and trade bodies warning of meaningful revenue pressure in coming quarters. Adding to the uncertainty, the US Supreme Court is nearing a key decision on the legality of these broad tariffs imposed under emergency powers.
In the near term, we expect Indian equities to remain range-bound with a cautious bias, as investors continue to balance domestic growth resilience against global trade-related uncertainties and stock-specific earnings risks. As a result, market participants may prefer a selective, bottom up approach, favoring stocks with visible earnings traction and reasonable valuations.
