Indian stock markets closed in the red on Tuesday, May 6, influenced by losses in pharma stocks. This decline followed U.S. President Donald Trump's order to boost domestic drug manufacturing. Broader market indices also suffered, ending a two-day winning streak for the Nifty 50 and Sensex.
The Nifty 50 decreased by 0.33% to 24,379, while the Sensex fell by 0.19% to 80,641. PSU banking stocks led the sectoral decline, with the Nifty PSU Bank index tumbling 4.84%. Moody's Ratings also cut India's GDP growth projection for 2025 to 6.3%, citing a global slowdown.
Investor sentiment was impacted by a weak handover from Wall Street and concerns over potential India-Pakistan tensions. India has proposed zero tariffs on steel, auto components, and pharmaceuticals in trade negotiations with the U.S. Crude oil prices rebounded after a sharp decline, following OPEC+'s decision to increase output.