Market Commentary - Mid-Session
The key equity indices traded with minor losses with some negative points in early trade as optimism regarding a potential rate cut to stimulate economic growth outweighed concerns surrounding global trade uncertainty. The Nifty traded below the 23,700 level. Pharma, oil & gas and IT shares advanced while consumer durables, realty and metal shares declined.
At 09:30 IST, the barometer index, the S&P BSE Sensex, shed 7.55 points or 0.02% to 78,283.37. The Nifty 50 index fell 1.35 points or 0.01% to 23,694.30.
In the broader market, the S&P BSE Mid-Cap index shed 0.18% and the S&P BSE Small-Cap index fell 0.07%.
The market breadth was strong. On the BSE, 1,837 shares rose and 990 shares fell. A total of 126 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,682.83 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 996.28 crore in the Indian equity market on 5 February 2025, provisional data showed.
Stocks in Spotlight:
Swiggy 3.23% after the company reported consolidated net loss of Rs 799.08 crore in Q3 FY25 as compared with net loss of Rs 574.38 crore in Q3 FY24. Net sales jumped 31% YoY to Rs 3,993.07 crore in Q3 FY25.
Sula Vineyards tumbled 4.03% after the company's consolidated net profit declined 34.7% to Rs 28.06 crore in Q3 FY25 as compared with Rs 42.98 crore in Q3 FY24. Net sales fell 1.4% YoY to Rs 200.15 crore during the quarter.
Welspun Corp fell 2.35%. The company's consolidated net profit surged 131.2% to Rs 674.70 crore in Q3 FY25 as compared with Rs 291.86 crore in Q3 FY24. Net sales plunged 23.9% to Rs 3613.51 crore in Q3 FY25 from Rs 4749.71 crore in Q3 FY24.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.52% to 6.765 as compared with the previous close of 6.772.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.5350, compared with its close of 87.4350 during the previous trading session.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was rose 0.07% to 107.69.
The United States 10-year bond yield rose 0.09% to 4.424.
In the commodities market, Brent crude for April 2025 settlement rose 10 cents or 0.13% to $74.71 a barrel.
Global Markets:
Asian stocks climbed on Thursday, mirroring gains in US stocks and bonds. This positive movement comes despite a week marked by trade tensions, underwhelming tech earnings, and mixed US economic signals.
The yen strengthened against the dollar for a fourth consecutive day, fueled by remarks from Bank of Japan official Naoki Tamura, who suggested Japanese interest rates could reach 1% in the latter half of fiscal year 2025.
Market attention now turns to Friday's US jobs report and its potential impact on Federal Reserve policy.
US indices advanced on Wednesday, supported by lower Treasury yields after purchasing managers index data indicated a slowdown in the US economy, particularly within the manufacturing sector. The ISM Services PMI fell to 52.8 in January from 54.0 in December, missing expectations for a reading for 54.0. This data fueled speculation that a moderating US economy might encourage the Federal Reserve to reduce interest rates, even with inflationary pressures stemming from trade tariffs. Separately, better-than-expected ADP nonfarm employment data unsettled markets due to its potential to foreshadow a robust nonfarm payrolls figure for January. Private payrolls increased by 183,000 during the month, according to data from payrolls processor ADP, above the expected 148,000 growth.
Apple Inc. saw a slight dip after reports surfaced of Chinese scrutiny of its App Store. Chipmakers, notably Nvidia, provided significant uplift to Wall Street, particularly following indications from Alphabet and its competitors of substantial increases in spending on artificial intelligence infrastructure in 2025. However, Alphabet shares fell over 7% due to weaker-than-anticipated cloud revenue, a segment closely linked to AI.
The NASDAQ Composite underperformed other major indices, closing with a 0.2% gain. The Dow Jones Industrial Average rose 0.7%, while the S&P 500 advanced 0.4%.
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