India's stock market experienced a dip on Friday morning, with the index dropping by 182 points, or 0.2%, to 81,432. This decline marks a pause in the upward trend seen in the previous session as investors grew cautious ahead of the upcoming first-quarter GDP data set to be released later today. The anticipated GDP growth is forecasted at 6.7%, which would be the highest in a year, fueled by strong rural demand and increased government expenditure. Market caution was further heightened due to ongoing tariff uncertainties after a ruling by a US federal appeals court allowed President Trump's extensive tariffs to continue temporarily. Additionally, investors are closely watching for the US Personal Consumption Expenditure (PCE) price index, expected later today, alongside China's official May Purchasing Manager's Index (PMI) figures over the weekend, and the Reserve Bank of India's interest rate decision slated for next Friday.
The technology sector was a significant factor in the index's downturn, with Tech Mahindra, Infosys, and IndusInd Bank experiencing notable declines of 1.7%, 1.5%, and 1.2%, respectively. As the week concludes, the BSE Sensex appears poised for a second weekly decrease, even though it is projected to achieve a third consecutive monthly gain of approximately 1.6%, bolstered by robust domestic economic data.
