Market Commentary - Mid-Session
The headline equity indices traded with major losses in mid-afternoon trade after US President Donald Trump announced that the United States would impose a 25 percent tariff on all steel and aluminum imports starting Monday. This move is expected to be in addition to further metal duties, which are anticipated to be disclosed later in the week. The Nifty sipped below the 23,350 mark. Consumer durables shares slumped after advancing in the past trading session.
At 14:30 IST, the barometer index, the S&P BSE Sensex, slipped 668.59 points or 0.88% to 77,178.60. The Nifty 50 index lost 220.65 points or 0.94% to 23,339.30.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.13%, and the S&P BSE Small-Cap index slumped 2.68%.
The market breadth was weak. On the BSE, 912 shares rose and 3,122 shares fell. A total of 136 shares were unchanged.
Indian Rupee hit a fresh record low against the US dollar on Monday. The currency opened at 87.9400 and touched a fresh all-time low of 87.9525 and is currently trading at 87.6100.
Economy:
India's forex reserves raised USD 1.05 billion to USD 630.607 billion for the week ended January 31, the RBI said on Friday. In the previous reporting week, the overall reserves had increased by USD 5.574 billion to USD 629.557 billion. This is the second consecutive week of an increase in the reserves, which have otherwise been on a declining trend for the last few weeks due to revaluation along with possible forex market interventions by RBI to help reduce volatility in the rupee, as stated by the Governor in the RBI monetary policy meeting.
Politics:
The Bharatiya Janata Party (BJP) won the Delhi legislative assembly elections with 48 out of 70 seats, marking its return to power in the capital after 27 years, while the Aam Aadmi Party (AAP) secured 22 seats. A party that wins more than the halfway mark of 35 seats can form the government.
AAP leaders Arvind Kejriwal and Manish Sisodia lost seats to BJP candidates. The BJP's campaign focused on financial assistance for women and senior citizens, subsidies on essential goods, and infrastructure development. AAP's vote share declined by approximately 10% compared to the previous election. The Congress party failed to secure any seats for the third consecutive time but saw a slight increase in its vote share.
Buzzing Index:
The Nifty consumer durables index dropped 2.78% to 37,403.40. The index rose 0.97% in the past consecutive trading session.
Century Plyboards (India) (down 4.8%), Crompton Greaves Consumer Electricals (down 4.32%), Whirlpool of India (down 4.24%), Blue Star (down 3.72%), Kalyan Jewellers India (down 3.7%), V-Guard Industries (down 3.5%), Titan Company (down 3.2%), Cera Sanitaryware (down 3.11%), Dixon Technologies (India) (down 2.72%) and Rajesh Exports (down 2.19%) declined.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.94% to 6.829 as compared with previous close 6.699.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.5975, compared with its close of 87.5000 during the previous trading session.
MCX Gold futures for the 5 April 2025 settlement gained 1.04% to Rs 85,770.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.22% to 108.27.
The United States 10-year bond yield added 0.07% to 4.490.
In the commodities market, Brent crude for April 2025 settlement rose 37 cents or 0.50% to $75.03 a barrel.
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