Market Commentary - Mid-Session
The domestic equity indices traded with significant gains in morning trade, supported by positive performance in Asian markets, following Nifty's longest losing streak in three decades on Tuesday. The decline was largely attributed to heightened global trade tensions stemming from the imposition of tariffs by U.S. President Donald Trump on key trading partners. The Nifty traded near the 22,250 mark. Auto shares advanced after declining for the previous trading session.
At 10:30 ST, the barometer index, the S&P BSE Sensex, rallied 489.70 points or 0.66% to 73,468.72. The Nifty 50 index added 167.50 points or 0.76% to 22,250.15.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 1.65% and the S&P BSE Small-Cap index jumped 1.63%.
The market breadth was strong. On the BSE, 2,913 shares rose and 699 shares fell. A total of 121 shares were unchanged.
Economy:
The HSBC India Services PMI was revised to 59.0 in February 2025 from 61.6 (flash), up from January's 26-month low of 56.5, marking 43 straight months of expansion.
New business inflows remained strong, driving one of the sharpest job growth rates since records began in 2005.
Backlogs of work rose, with outstanding business increasing at the fastest pace since May 2024.
Input cost inflation eased to a four-month low, while output price inflation stayed above the long-term average as firms passed costs onto customers. However, business confidence slipped to a six-month low.
The HSBC India Composite PMI eased to 58.8 in February 2025 from 60.6 (flash) but stayed above January's 57.7, marking 43 consecutive months of expansion. Services activity accelerated, while manufacturing hit a 14-month low.
New orders rose strongly, led by services, and employment growth stayed near record levels.
Cost pressures were the softest since last October, with lower inflation in manufacturing than services. However, selling prices for goods and services saw the sharpest rise in three months.
Buzzing Index:
The Nifty Auto index rose 1.96% to 20,666.35. The index declined 1.31% in previous trading sessions.
Samvardhana Motherson International (up 3.36%), Exide Industries (up 2.86%), Mahindra & Mahindra (up 2.67%), Eicher Motors (up 2.33%), Balkrishna Industries (up 2.19%) were the top gainers. Among the other gainers were TVS Motor Company (up 2.03%), Tata Motors (up 1.64%), Apollo Tyres (up 1.39%), Bharat Forge (up 1.37%) and Bosch (up 1.15%) added.
Stocks in Spotlight:
Rail Vikas Nigam (RVNL) jumped 7.60% after the company announced that it has received letter of acceptance (LoA) for a project worth Rs 729.82 crore from Himachal Pradesh State Electricity Board (HPSEBL).
Adani Wilmar rallied 5.09% after the company signed a definitive agreement to acquire GD Foods Manufacturing (India), the owner of the 'Tops' brand. The acquisition will be executed in multiple tranches, with 80% of the shares to be acquired in the first tranche and the remaining 20% to be acquired over the next three years.
GE Vernova T&D India added 3.25% after the company received three orders worth Rs 500 crore from Power Grid Corporation of India for the supply and installation of transformers and reactors under bulk procurement.
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