MARKET UNDER PRESSURE; AUTO SHARES DECLINE FOR 2ND DAYC

The key domestic indices continued to trade with major losses in mid-morning trade as investor sentiment remained cautious amid uncertainty over the reopening of the Strait of Hormuz and a sharp surge in crude oil prices above the $100-per-barrel mark. Investors are also closely monitoring Q4 earnings for further cues. The Nifty traded below the 24,200 level.

Auto shares declined for second consecutive trading sessions.

At 11:25 IST, the barometer index, the S&P BSE Sensex declined 741.11 points or 0.96% to 77,762.77. The Nifty 50 index slumped 188.65 points or 0.77% to 24,191.25.

In the broader market, the BSE 150 MidCap Index fell 0.16% and the BSE 250 SmallCap Index shed 0.10%.

The market breadth was positive. On the BSE, 1,767 shares rose and 2,178 shares fell. A total of 205 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 3% to 18.85.

In the commodities market, Brent crude for June 2026 settlement jumped $1.20 or 1.18% to $103.11 a barrel.

Economy:

The HSBC Flash India PMI Composite Output Index was rose to 58.3 in April from the final reading of 57.0 in March. The latest reading signalled a sharp expansion in overall business activity, remaining well above its long-run average.

HSBC Flash India Services PMI Business Activity Index stood at 57.9 in April 2026 compared with 57.5 in March 2026.

Meanwhile, HSBC Flash India Manufacturing PMI Output Index climbed to 59.1 in April 2026 compared with 55.7 in March 2026. Overall manufacturing business conditions also strengthened, with the HSBC Flash India Manufacturing PMI rising to 55.9 in April from 53.9 in the previous month.

The foreign broker has downgraded Indian equities to �underweight� from �neutral.� The move comes amid rising crude oil prices driven by the Middle East conflict. Brent crude is up over 40% and trading above $100 per barrel. Higher oil prices are expected to raise inflation and slow growth. It said earnings forecasts may be revised lower. A 20% rise in crude could cut earnings growth by 1.5%.

The brokerage also flagged risks of rupee depreciation and continued foreign investor outflows. Concerns around IT sector demand remain. While domestic inflows are supportive, valuations may look expensive if earnings are downgraded. The brokerage said selective opportunities remain, but the broader outlook has weakened.

Buzzing Index:

The Nifty Auto index declined 1.98% to 25,927.35. The index fell 2.62% in the two consecutive trading sessions.

TVS Motor Company (down 3.62%), Samvardhana Motherson International (down 2.93%), Ashok Leyland (down 2.92%), Mahindra & Mahindra (down 2.84%), Bharat Forge (down 2.57%), Hero MotoCorp (down 2.37%), Uno Minda (down 2.15%), Eicher Motors (down 1.8%), Sona BLW Precision Forgings (down 1.74%) and Tata Motors Passenger Vehicles (down 1.7%) declined.

Stocks in Spotlight:

Infosys declined 0.82%. The company has announced a strategic collaboration with OpenAI to help enterprises transform software development and modernization with OpenAI�s frontier AI models and products like Codex.

KP Energy surged 4.05% after the company received an inter-state electricity trading licence from the Central Electricity Regulatory Commission. The licence, classified under Category V, allows the company to undertake electricity trading across state boundaries and participate in national power markets.

Global Markets:

Asian market traded with some losses on Thursday, even after President Donald Trump extended the ceasefire with Iran.

Trump extended a two-week U.S. ceasefire on Tuesday, saying it was warranted due to Tehran�s �seriously fractured� government.

The ceasefire will remain in place until Iran submits a proposal or talks conclude, while the U.S. military continues its blockade of Iranian ports, Trump said.

However, the timeline remains uncertain. Iranian state media reported Wednesday that Tehran�s negotiators would not attend talks with the U.S., calling them a "waste of time.�

A lack of commitment from Iran reportedly prompted Vice President JD Vance to pause his trip to join peace talks.

Meanwhile, Iran�s navy also said that it had seized two container ships in the Strait of Hormuz.

On the data front, Japan�s manufacturing activity expanded at its fastest pace in four years in April, according to the S&P Global flash Purchasing Managers� Index, as firms boosted output amid supply concerns linked to Middle East tensions.

The S&P Global flash Japan Manufacturing Purchasing Managers` Index (PMI) rose to 54.9 in April, the highest since January 2022, from 51.6 in March. The 50-mark separates growth from contraction.

South Korea�s economy grew more than expected in the first three months of the year, recording the fastest growth since the third quarter of 2020. The 1.7% growth in January to March from the previous quarter exceeded the widely reported estimate of 1.0% and reflects a rebound from the 0.2% contraction in the prior quarter.

Overnight on Wall Street, the S&P 500 and Nasdaq Composite finished at record levels on Wednesday after President Donald Trump extended the U.S. ceasefire with Iran, while upbeat earnings reports also lifted sentiment.

The broad market index added 1.05% to finish at 7,137.90, while the tech-heavy Nasdaq added 1.64% to settle at 24,657.57. Meanwhile, the Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.