Market Commentary - Mid-Session
The key domestic indices traded near the flat line with some negative points in the afternoon trade, weighed down by several factors contributing to the market downturn, including foreign investor selling, global economic concerns, and a correction in small-cap and mid-cap stocks. The Nifty traded below the 22,150 mark.
IT, realty, and metal shares advanced while media, oil & gas, and PSU bank shares declined.
At 13:30 IST, the barometer index, the S&P BSE Sensex, declined 85.82 points, or 0.12%, to 73,111.65. The Nifty 50 index fell 5.60 points, or 0.03%, to 22,119.10.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.12% and the S&P BSE Small-Cap index tanked 1.31%.
The market breadth was weak. On the BSE, 991 shares rose and 3,012 shares fell. A total of 154 shares were unchanged.
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.
Meanwhile, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) registered 56.3 in February, down from 57.7 in January but still indicative of a further robust improvement in the health of the sector. Business conditions improved across all three monitored sub-sectors: consumer, intermediate, and investment goods.
The Indian manufacturing sector's strong start to 2025 continued in February. Despite slowing to the weakest since December 2023, rates of expansion in output and sales remained elevated in the context of the survey's 20-year history.
Gainers & Losers:
Bharat Electronics (up 3.96%), UltraTech Cement (up 2.89%), Eicher Motors (up 2.95%), Wipro (up 2.85%), and JSW Steel (up 2.60%) were the major Nifty gainers.
Coal India (down 2.83%), Reliance Industries (down 2.79%), Bajaj Finserv (down 1.63%), Indusind Bank (down 1.18%), and Bajaj Auto (down 1.43%) were the major Nifty losers.
Eicher Motors rose 2.95% after the company's unlisted subsidiary, VE Commercial Vehicles (VECV) reported a 9% year on year growth in commercial vehicles (CV) sales to 8,092 units in February 2025.
Bajaj Auto fell 1.43%. The company reported 2% increase in total auto sales to 3,52,071 units in February 2025 as against 3,46,662 units in February 2024.
Stocks in Spotlight:
Tata Motors rose 0.61%. The company's total sales tumbled 8.17% to 79,344 units in February 2025 as compared with 86,406 units in February 2024.
Larsen & Toubro (L&T) added 1.44% after the company's power transmission & distribution (PT&D) vertical has secured 'large' orders in India and abroad. The value of the contract, according to L&T's internal classification, ranges between Rs 2,500 crore and Rs 5,000 crore.
Adani Ports and Special Economic Zone (APSEZ) fell 1.33%. The company delivered a monthly cargo volume of 35.6 MMT in February 2025, marking a 3% increase on a year-on-year (YoY) basis.
One 97 Communications (Paytm) advanced 2.05%. The company said that it has received show cause notice (SCN) from the Enforcement Directorate (ED), Government of India for violating provisions of Foreign Exchange Management Act, 1999 (FEMA).
The Enforcement Directorate (ED) alleged that the company contravened certain provisions of FEMA between 2015 to 2019 in relation to its acquisition of two subsidiaries, Little Internet Private (LIPL) and Nearbuy India Private (NIPL) erstwhile Groupon, along with certain Directors & Officers.
Global Markets:
European stocks traded higher after investors awaited for earnings reports from Euroapi and Bunzl, and key data releases in focus included preliminary euro zone inflation data for February, with the latest consumer price index is set to release ahead of the European Central Bank interest rate decision on Thursday.
Most Asian stocks traded higher on Monday as investors 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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