Market Commentary - Mid-Session
The key equity indices traded with minor gains in early trade, supported by the latest GDP growth numbers. The Nifty traded above the 22,150 mark. IT, auto, and realty shares advanced while private bank, PSU bank, and pharma shares declined.
At 09:30 IST, the barometer index, the S&P BSE Sensex, added 159.41 points or 0.22% to 73,361.27. The Nifty 50 index rose 51.25 points or 0.23% to 22,175.95.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.50% and the S&P BSE Small-Cap index fell 0.74%.
The market breadth was positive. On the BSE, 1,388 shares rose and 1,051 shares fell. A total of 223 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 11,639.02 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 12,308.63 crore in the Indian equity market on 28 February 2025, provisional data showed.
FIR against ex-SEBI chief:
A special court has directed the Anti-Corruption Bureau (ACB) to register a first information report (FIR) against former SEBI chairperson Madhabi Puri Buch, the whole-time members of the market regulator, and two BSE officials on charges of alleged stock market fraud, regulatory violations, and corruption linked to the listing of a company in 1994. The Securities and Exchange Board of India (SEBI) said it would take legal steps to challenge the order. The order comes just two days after Buch completed her tenure as SEBI chief.
Economy:
India's economic growth improved to 6.2% in the third quarter of FY25, up from an initially reported 5.4% in the previous quarter. Real GDP has been estimated to grow by 6.5% in FY 2024'25. Nominal GDP is expected to witness a growth rate of 9.9% in FY 2024'25. Both the growth rates are revised upward from their respective First Advance Estimates.
Real GDP is estimated to grow by 6.2% in Q3 of FY 2024-25. Growth rate in nominal GDP for Q3 of FY 2024-25 has been estimated at 9.9%. The growth rate of real GDP for Q2 of the financial year 2024-25 has been revised upward to 5.6%.
India's core sector recorded a growth of 4.6% (provisional) in January 2025, official data showed today. The final core growth for October 2024 increased by 3.8%, with the cumulative growth rate during April-January 2024-25 at 4.4% (provisional) over the comparable period of last year.
Stocks in Spotlight:
Tata Motors shed 0.36%. The company's total sales declined 8.2% to 79,344 units in February 2025 as against 86,404 units sold in February 2024. Total domestic sales dropped 9% YoY to 77,332 units in February 2025.
Maruti Suzuki India rose 0.37%. The company's total sales increased 1% to 1,99.400 units in February 2025 as compared with 1,97,471 units in February 2024. Domestic sales jumped 3.5% YoY to 1,74,379 units in February 2025.
Mahindra & Mahindra added 2.09% after the company's overall auto sales grew by 14.78% to 83,702 vehicles sold in February 2025 as against 72,923 vehicles sold in February 2024.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.86% to 6.848 as compared with previous close 6.723.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.2800, compared with its close of 87.3700 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement rose 0.50% to Rs 84,637.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.33% to 107.26.
The United States 10-year bond yield rose 0.21% to 4.238.
In the commodities market, Brent crude for May 2025 settlement rose 49 cents, or 0.36% to $73.17 a barrel.
Global Markets:
Asian stocks traded higher on Monday as investor's awaited clarity on U.S. President Donald Trump's plans to impose tariffs this week on key trading partners.
U.S. President Donald Trump announced via social media that five digital assets'Bitcoin, Ether, XRP, Solana, and Cardano'are set to be part of this reserve, fueling a surge in crypto prices.
Australia's S&P Global Manufacturing purchasing manager's index reading for February came in at 50.4, similar to the previous month's 50.6 reading.
Meanwhile, China's Caixin Manufacturing PMI climbed to 50.8 in February, beating expectations of 50.4 and rising from January's 50.1. This marks the index's largest jump since November and its fifth consecutive month of expansion, signaling steady economic momentum.
Geopolitical tensions remained in focus as European leaders drafted a Ukraine peace plan for the U.S., following a tense Oval Office exchange between Trump and Ukrainian President Volodymyr Zelenskyy.
Concerns about the U.S. economy deepened with a string of weak data points, pushing the Atlanta Fed's GDPNow tracker to an annualized -1.5% from +2.3%, fueling recession fears.
Adding to market jitters, U.S. Commerce Secretary Howard Lutnick confirmed that tariffs on imports from Mexico and Canada will take effect Tuesday, March 4, 2025. While an initial 25% tariff was proposed, Lutnick indicated that Trump will finalize the exact rates on Tuesday'alongside a fresh 10% tariff on Chinese imports.
With the January U.S. payrolls report set for release Friday, investors are watching closely. A weaker-than-expected job number could boost expectations that the Federal Reserve will slash interest rates three times this year.
Despite a brief stumble, Wall Street ended Friday on a high note. The S&P 500 jumped 1.59%, the Nasdaq surged 1.63%, and the Dow Jones gained 1.4%, as traders brushed off geopolitical anxieties following the fiery Trump-Zelenskyy meeting.
In individual stocks, Dell tumbled over 4% after warning of a decline in adjusted gross margin for its 2026 fiscal year.
On the economic front, the PCE price index'the Fed's preferred inflation gauge'rose 0.3% in January, matching December's pace. Year-over-year, inflation eased slightly to 2.5% from 2.6%. Core inflation (excluding food and energy) also increased 0.3% month-over-month, with a year-on-year dip to 2.6% from December's 2.9%.
However, despite this moderation in inflation, consumer sentiment declined by 0.2% in January'its first drop in nearly two years, raising concerns about spending trends ahead.
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