Indian Shares Slightly Lower Amid Trade Tensions

Indian shares ended lower despite a previous rally. A net loss reported by Symphony and ongoing U.S.-China trade tensions have the market on edge. Investors are monitoring RBI's upcoming decisions, as well as the impact of easing tariff concerns.

Date: 05-02-2025

AI Rating: 5

**Market Overview**
Indian shares ended slightly lower with the benchmark S&P/BSE Sensex dropping 312.53 points (0.40%) to 78,271.28, while the NSE Nifty index fell 42.95 points (0.18%) to 23,696.30. Despite the decline, the mid-cap and small-cap indexes advanced by 0.7% and 1.4%, respectively. This indicates a mixed sentiment in the market, potentially influenced by ongoing external economic factors.

**Impact of U.S.-China Trade Tensions**
Continued trade tensions between the U.S. and China are significantly affecting investor sentiment. The temporary suspension of international package acceptance from China and Hong Kong by the USPS adds to the concerns regarding trade stability. Additionally, President Donald Trump’s remarks about his reluctance to engage with Chinese President Xi Jinping further imply a stagnant diplomatic relationship, which may reflect negatively on trade-related stocks.

**Sector Performance**
Tata Consumer Products, Britannia Industries, Nestle India, Titan Company, and Asian Paints faced declines of 2-3%. Conversely, stocks like ONGC, ITC Hotels, and Hindalco saw gains of around 3%. This variance highlights sector-specific reactions to broader economic conditions and confirms the influence of individual company performances on stock prices. The decline in crude oil prices is a noteworthy factor that might have limited downside in the broader indices.

**Symphony Losses**
The stark 8.6% drop in Symphony's stock after reporting a net loss of Rs 10 crore for the third quarter (ending December 31, 2024) signals a red flag for investor confidence in its future profitability and could lead to ongoing price pressure. This news reflects negatively on investor sentiment, particularly around company-specific fundamentals, impacting stock prices directly.

Stocks: TATACONSUMER BRITANNIA NESTLEIND TITAN ASIANPAINT ONGC ITC HINDALCO SYMPHONY