Market Commentary - Mid-Session
The headline equity benchmarks traded with substantial losses in mid-morning trade as investors remained cautious following Trump's decision to impose a 25% tariff on steel and aluminum imports, with the possibility of additional trade measures. The market sentiment was further subdued by continued selling from foreign institutional investors (FIIs). The Nifty traded below the 23,300 level. Media shares witnessed selling pressure for the fourth consecutive trading session.
At 11:30 IST, the barometer index, the S&P BSE Sensex, slipped 312.25 points or 0.41% to 76,990.39. The Nifty 50 index lost 113.95 points or 0.49% to 23,267.65.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 2.32%, and the S&P BSE Small-Cap index dropped 2.84%.
The market breadth was weak. On the BSE, 637 shares rose and 3,114 shares fell. A total of 128 shares were unchanged.
IPO Update:
The initial public offer (IPO) of Ajax Engineering received bids for 49,04,382 shares as against 1,41,49,997 shares on offer, according to stock exchange data at 11:15 IST on 11 February 2024. The issue was subscribed to 0.35 times.
The issue opened for bidding on 10 February 2024 and it will close on 12 February 2024. The price band of the IPO is fixed between Rs 599 and Rs 629 per share. An investor can bid for a minimum of 23 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Media index fell 1.74% to 1,555.50. The index dropped 5.77% in four consecutive trading sessions.
Saregama India (down 4.96%), Den Networks (down 3.49%), Dish TV India (down 3.14%), Zee Entertainment Enterprises (down 2.44%), Tips Music (down 2.01%), Network 18 Media & Investments (down 1.92%), Hathway Cable & Datacom (down 1.89%), Nazara Technologies (down 0.72%) and PVR Inox (down 0.66%) declined.
Stocks in Spotlight:
Grasim Industries rose 1.55% after the company's consolidated net profit zoomed 130.56% to Rs 898.96 crore on 3.66% rise in revenue from operations to Rs 34,792.85 in Q3 FY25 over Q2 FY25.
Ashoka Buildcon declined 1.52%. The company's consolidated net profit surged 502% to Rs 661.5 crore in Q3 FY25 as against Rs 109.8 crore posted in Q3 FY24. Revenue from operations declined 10% to Rs 2,387.9 crore in Q3 FY25 over Q3 FY24.
Global Markets:
US Dow Jones index futures were down 62 points, suggesting a negative opening for US equities.
Most Asian stocks traded lower on Tuesday as investors remained cautious over Donald Trump's latest tariff decisions. The U.S. President signed off on 25% tariffs on steel and aluminum imports, warning that more trade measures could follow.
On Monday, Trump formalized the tariffs through executive orders, stating that there would be no exceptions. While major steel exporters like Canada, Mexico, and Brazil had previously enjoyed some quota-based exemptions, those privileges are now revoked.
Trump hinted that tariffs on metals could go even higher and suggested he was considering duties on cars, semiconductors, and pharmaceuticals. He also proposed raising U.S. import tariffs to match the rates imposed by foreign countries on American goods.
In the U.S., the S&P 500 closed higher on Monday as a tech-driven rally, led by Nvidia, offset worries about Trump's tariff threats. Investors also looked ahead to key economic data and Federal Reserve Chairman Jerome Powell's testimony later in the week.
The Dow Jones Industrial Average rose 0.4%, the S&P 500 index gained 0.7%, and the NASDAQ Composite climbed 1%.
Nvidia jumped 3%, leading the tech sector higher after analysts described the stock as a buying opportunity following its recent dip. The optimism comes ahead of the company's quarterly earnings report, set for release on February 26.
Fed Chair Jerome Powell is expected to face tough questions on the potential economic impact of tariffs when he delivers his semiannual monetary policy testimony before Congress on Tuesday and Wednesday.
Meanwhile, investors are closely watching U.S. consumer inflation data for January, scheduled for release on Wednesday. The report could influence the Fed's stance on interest rates and shape market expectations in the coming weeks.
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