Market Commentary - Mid-Session
The domestic equity benchmarks traded with robust gains in early-afternoon trade, bolstered by gains in Asian markets. This positive momentum came after the Nifty index experienced its longest losing streak in three decades on Tuesday, triggered by escalating global trade tensions following U.S. President Donald Trump's tariff imposition on key trading partners. The Nifty traded above the 22,350 mark. IT shares advanced after declining in the past trading session.
At 12:30 IST, the barometer index, the S&P BSE Sensex, soared 862.19 points or 1.18% to 73,852.89. The Nifty 50 index advanced 285.20 points or 1.29% to 22,367.85.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index surged 2.35% and the S&P BSE Small-Cap index jumped 2.25%.
The market breadth was strong. On the BSE, 3,158 shares rose and 688 shares fell. A total of 109 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.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 1.22% to 13.66. The Nifty 27 March 2025 futures were trading at 22,467, at a premium of 99.15 points as compared with the spot at 22,367.85.
The Nifty option chain for the 27 March 2025 expiry showed a maximum call OI of 54.8 lakh contracts at the 23,000 strike price. Maximum put OI of 63.1 lakh contracts was seen at 22,000 strike price.
Buzzing Index:
The Nifty IT index jumped 2.61% to 38,248.55. The index decreased 0.90% in the past trading session.
Coforge (up 10.23%), Persistent Systems (up 5.73%), L&T Technology Services (up 3.65%), Mphasis (up 2.89%), Tech Mahindra (up 2.62%), LTIMindtree (up 2.28%), HCL Technologies (up 2.17%), Infosys (up 1.94%), Wipro (up 1.88%) and Tata Consultancy Services (up 1.23%) advanced.
Stocks in Spotlight:
Z-Tech (India) was locked in upper circuit of 5% after the company announced that it has received a multiple orders worth Rs 9.5 crore form different entities.
Bondada Engineering hit an upper circuit of 5% after the company announced that its subsidiary, Bondada Green Engineering has successfully completed its first export order.
Mahindra & Mahindra Financial Services rallied 3.62% after the company's board appointed Pradeep Kumar Agrawal as chief financial officer (CFO) and key managerial personnel (KMP), effective from 5 March 2025.
Walchandnagar Industries hit an upper circuit of 5% after the company entered into share subscription and shareholders' agreement to acquire 60.3% stake in Aicitta Intelligent Technology Private (Aicitta).
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