Market Commentary - Mid-Session
The headline equity benchmarks continued to trade with small losses in mid-morning trade as market sentiment was weighed down by US President Donald Trump's decision to implement tariffs on Canada and Mexico starting today, along with Canada's retaliatory tariffs on US goods. The Nifty tanked below the 22,100 level. FMCG shares declined after advancing for the previous trading session.
At 11:30 IST, the barometer index, the S&P BSE Sensex, fell 140.84 points or 0.20% to 72,945.88. The Nifty 50 index shed 50.25 points or 0.23% to 22,068.90.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.33%, and the S&P BSE Small-Cap index added 1.49%.
The market breadth was positive. On the BSE, 2,370 shares rose and 1,325 shares fell. A total of 169 shares were unchanged.
Buzzing Index:
The Nifty FMCG index lost 0.90% to 50,331.10. The index rose 0.19% in the previous trading session.
Nestle India (down 2.57%), Colgate-Palmolive (India) (down 2.53%), Marico (down 2.39%), Dabur India (down 1.77%), United Spirits (down 1.49%), Hindustan Unilever (down 1.14%), Britannia Industries (down 1.13%), Godrej Consumer Products (down 0.92%), ITC (down 0.88%), and Tata Consumer Products (down 0.46%) declined.
On the other hand, Varun Beverages (up 2.37%), Balrampur Chini Mills (up 0.27%), and Procter & Gamble Hygiene and Health Care (up 0.2%) added.
Stocks in Spotlight:
Solar Industries India rose 0.58%. The company announced that its wholly owned subsidiary, Solar Defence and Aerospace, has signed a contract worth Rs 239 crore with the Ministry of Defence, Government of India, for the supply of multi-mode handgrenade.
Sunteck Realty rallied 4.44% after the company announced that it has incorporated a wholly owned subsidiary named Eximius Buildcon (EBPL) on 3rd March 2025.
Suzlon Energy added 2.79% after the company announced that it has secured a third order of 204.75 MW from Jindal Green Wind 1, a subsidiary of Jindal Renewables.
B.R. Goyal Infrastructure shed 1.97%. The company has received a Rs 30.71 crore work order from Bhavnagar Municipal Corporation for the construction of a White Topping Road and other works from Mahila College Circle to Bhavnagar Airport, Gujarat.
Global Markets:
Most Asian stocks tumbled on Tuesday after China announced that it would impose additional tariffs of up to 15% on some U.S. goods starting March 10 and restrict exports to 15 U.S. companies. These retaliatory measures, from China's Ministry of Finance and Ministry of Commerce, came just as new U.S. tariffs took effect on Chinese goods.
Japanese stocks fell nearly 2% to lead declines in Asia-Pacific markets after U.S. President Donald Trump made it clear that tariffs on Mexico and Canada would go into effect as planned.
Japan's unemployment rate for January edged up to 2.5%, compared to 2.4% in the previous month, according to government data released on Tuesday.
South Korea's retail sales in January declined by 0.6% compared to the previous month. Revised estimates show a 0.2% increase in December. The S&P Global purchasing managers' index for South Korea fell to 49.9 in February from 50.3 the month before. This marks the fourth time in the last six months that the index has fallen below 50, which separates expansion from contraction.
Investors will be keeping a watch on Chinese stocks ahead of the country's annual parliamentary gathering, known as the 'Two Sessions,' which will kick off later in the day.
Australia's retail sales for January rose 0.3%, in line with expectations, after a 0.1% decline in December.
Overnight in the U.S., all three major indexes fell as Trump reiterated that 25% levies on imports from Mexico and Canada would go into effect Tuesday stateside.
The S&P 500 fell 1.76% to end the day at 5,849.72, marking this the benchmark's worst day since December. The Dow Jones Industrial Average dropped 649.67 points, or 1.48%, to finish at 43,191.24. The Nasdaq Composite slid 2.64% to close at 18,350.19, weighed down by Nvidia's decline of more than 8%.
On the economic front, New York Federal Reserve President John Williams is slated to speak Tuesday afternoon in New York.
Markets in Europe closed higher on Monday amid a charge in defense shares after regional leaders held security talks that touched on bolstered military spending.
The regional Stoxx 600 index moved between losses and gains in early deals before closing 1.1% higher. The Stoxx Europe aerospace and defense index rose by 8%, marking its best session in five years. EU Commission President Ursula von der Leyen told reporters in Brussels on Monday that the bloc's 27 member states would be given details about the so-called rearm Europe plan on Tuesday.
Her comments came after British Prime Minister Keir Starmer hosted a Ukraine peace summit over the weekend. During the talks, the U.K. leader said Kyiv's allies must step up and continue their support.
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