Market Commentary - Mid-Session
The key equity benchmarks traded sideways in mid-morning 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. PSU Bank shares extended losses for the six consecutive trading sessions.
At 14:30 IST, the barometer index, the S&P BSE Sensex, shed 3.22 points, or 0.01%, to 73,187.40. The Nifty 50 index rose 23.85 points, or 0.11%, to 22,148.10.
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, 1,074 shares rose and 2,952 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.
Buzzing Index:
The Nifty PSU Bank index shed 0.63% to 5,616.35. The index tumbled 7.19% in the past six consecutive trading sessions.
Punjab & Sind Bank (down 4.37%), Central Bank of India (down 4.09%), Indian Overseas Bank (down 3.97%), UCO Bank (down 3.96%), Bank of Maharashtra (down 3.66%), Indian Bank (down 2.37%), Union Bank of India (down 2.3%), Bank of Baroda (down 0.85%), Bank of India (down 0.46%) and Canara Bank (down 0.04%) declined.
On the other hand, State Bank of India (up 0.36%), Punjab National Bank (up 0.03%) added.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.87% to 6.849 as compared with previous close 6.723.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.3850, compared with its close of 87.3700 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement rose 0.58% to Rs 84,711.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 107.36.
The United States 10-year bond yield rose 0.26% to 4.240.
In the commodities market, Brent crude for May 2025 settlement shed 5 cents, or 0.07% to $72.76 a barrel.
Stocks in Spotlight:
Glenmark Pharmaceuticals added 1.90% after the US-based subsidiary, Glenmark Pharmaceuticals Inc., USA, announced the acquisition and launch of Acetylcysteine Injection, single-dose vials.
Solarium Green Energy surged 9.13% after the company announced that it had received a work order worth Rs 3.09 crore from the Border Security Force (BSF) Jammu, dated 28 February 2025.
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