Market Commentary - Quick Review
The key equity indices ended with minor losses on Monday as investors remained cautious due to FII selling and mixed global cues. The Nifty closed below the 22,150 mark. Realty, metal, and IT shares advanced while media, oil & gas, and bank shares declined.
As per provisional closing, the barometer index, the S&P BSE Sensex, fell 112.16 points, or 0.15%, to 73,085.94. The Nifty 50 index shed 5.40 points, or 0.02%, to 22,119.30.
In the broader market, the S&P BSE Mid-Cap index rose 0.25% and the S&P BSE Small-Cap index fell 0.70%.
The market breadth was weak. On the BSE, 1,074 shares rose and 2,952 shares fell. A total of 154 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 1.06% to 13.76.
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 Media index fell 1.10% to 1,371.55. The index tumbled 8.87% in the past three consecutive trading sessions.
Zee Entertainment Enterprises (down 3.32%), Dish TV India (down 2.81%), Tips Music (down 2.01%), Den Networks (down 1.93%), Hathway Cable & Datacom (down 1.66%), Network 18 Media & Investments (down 1.38%), PVR Inox (down 1.02%), and Sun TV Network (down 0.14%) declined.
On the other hand, Nazara Technologies (up 0.98%) Saregama India (up 0.5%) added.
Auto Sales Impact:
Bajaj Auto fell 2.44%. 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.
Ashok Leyland declined 1.86%. The company reported 2% rise in total commercial vehicle sales to 17,903 units in February 2025 from 17,632 units sold in February 2024.
Steel Strips Wheels (SSWL) fell 2.84%. The company reported a net turnover of Rs 407.74 crore for February 2025, registering 18.88% YoY growth compared to Rs 342.98 crore posted in February 2024.
SML Isuzu jumped 6.93% after the vehicle manufacturer said that it has sold 1,288 units in February 2025, registering a growth of 27.5% from 1,010 units sold in the same period last year.
Eicher Motors rose 2.94% after the company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 9% year-on-year growth in commercial vehicle (CV) sales to 8,092 units in February 2025.
Mahindra & Mahindra added 1.04% 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.
Tata Motors rose 0.12%. The company's total sales tumbled 8.17% to 79,344 units in February 2025 as compared with 86,406 units in February 2024.
Maruti Suzuki India fell 1.09%. The car manufacturer announced that its total production increased 0.98% to 199,400 units in February 2025 as against 197,471 units recorded in February 2024.
Hyundai Motor India (HMIL) tumbled 3.74%. The company said that it has recorded total monthly sales of 58,727 units in February 2025, comprising domestic sales of 47,727 units and export sales of 11,000 units.
TVS Motor Company rallied 4.74% after the company's total sales jumped 10% to 403,976 units in February 2025 as against 368,424 units in February 2024.
VST Tillers Tractors dropped 5.45% after the company's total sales fell by 21.82% to 3,260 units in February 2025 from 4,170 units sold in February 2024.
Stocks in Spotlight:
Glenmark Pharmaceuticals added 3% after the US-based subsidiary, Glenmark Pharmaceuticals Inc., USA announced the acquisition and launch of Acetylcysteine Injection, single-dose vials.
Larsen & Toubro (L&T) rose 1.09% after the firm said that 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 1.53%. 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 2.02%. The company said that it has received show cause notice (SCN) from the Enforcement Directorate (ED), Government of India, for violating provisions of the 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), while Groupon, along with certain directors & officers.
Global Markets:
European stocks traded higher on Monday as Eurozone inflation eased to 2.4% in February as against 2.5% reading of January, according to flash data from statistics agency Eurostat.
Eurozone inflation re-accelerated in the fourth quarter, but European Central Bank policymakers remain optimistic about its trajectory. Accounts from the central bank's January meeting last week showed that policymakers believed inflation was on its way to meeting the 2% target, despite some lingering concerns.
Investors awaited earnings reports from Euroapi and Bunzl, the latest consumer price index is set to release ahead of the European Central Bank interest rate decision on Thursday.
Asian stocks ended mixed 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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