Market Commentary - Mid-Session
The key domestic indices continued to trade with robust gains in the afternoon trade, supported by positive sentiment in global markets. The Nifty traded above the 22,350 mark.
All the sectoral indices were traded in green with metal, media, and auto gaining the most.
At 13:30 IST, the barometer index, the S&P BSE Sensex, jumped 748.90 points or 1.02% to 73,745.72. The Nifty 50 index added 273.25 points or 1.24% to 22,355.90.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 2.38% and the S&P BSE Small-Cap index jumped 2.39%.
The market breadth was strong. On the BSE, 3,183 shares rose and 722 shares fell. A total of 107 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.
Gainers & Losers:
Adani Ports and Special Economic Zone (up 4.82%), Power Grid Corporation of India (up 4.61%), Mahindra and Mahindra (up 4.35%), NTPC (up 4.10%), and Adani Enterprises (up 3.93%) were the major Nifty gainers.
Bajaj Finance (down 2.81%), Indusind Bank (down 0.74%), HDFC Bank (down 0.74%) and Grasim Industries (down 0.36%) were the major Nifty losers.
Stocks in Spotlight:
Larsen & Toubro (L&T) rose 0.45%. The company has announced that its Building & Factories (B&F) vertical has secured significant orders from a reputed developer for the construction of residential towers in Mumbai, Bangalore, and Chennai.
Force Motors gained 4.28% after the company reported 46.28% increase in auto sales to 3,600 units in February 2025 as compared with 2,461 units sold in February 2024.
Refex Industries was locked in 5% upper circuit after the company said that Refex eVeelz would expands its EV Fleet with 1,000 electric cars as part of a strategic partnership with leading ride-hailing platform.
Z-Tech (India) was locked in upper circuit of 5% at Rs 525.15 after the company announced that it received orders totaling Rs 9.43 crore from two separate 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.
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).
Solex Energy jumped 4.98% after the company successfully commenced full-scale commercial production of solar photovoltaic modules with an 800 MW capacity in Surat, Gujarat.
Global Markets:
European stocks advanced on Wednesday amid optimism that U.S. President Donald Trump's 25% duties on Canada and Mexico could be relaxed, with investors also paying close attention to the potential reform of Germany's contentious debt brake system.
Most Asian stocks traded higher on Wednesday as investor's assessed China growth and inflation targets amid U.S. tariffs and escalating global trade tensions weighing down sentiment.
Trump imposed 25% tariffs on Mexico and Canada, along with 20% levies on China. In response, Canada announced immediate retaliatory measures, while Mexico also signaled its intention to respond. China's finance ministry has said it would impose 15% tariffs on several agricultural products, along with a 10% tariff on dairy.
Investors are also focused on China's 'Two Sessions,' an annual parliamentary gathering, with the meeting of its top legislature, the National People's Congress, kickstarting Wednesday.
China on Wednesday set its GDP growth target for 2025 at around 5%. The country has also lowered its inflation expectations to 'around 2%.'
Trump's 25% tariffs on goods from Mexico and Canada took effect Tuesday. The president also imposed an additional 10% duty on Chinese goods, bringing the total new tariffs on China to 20%.
China's Caixin services PMI came in at 51.4 in February, above expectations for a 50.8 print. The reading was higher than the 51.0 seen in January.
Australia's gross domestic product rose 0.6% quarter-on-quarter, data from the Australian Bureau of Statistics showed on Wednesday. The print picked up from the 0.3% seen in the prior quarter. GDP grew 1.3% year-on-year, above expectations of 1.2% and higher than the 0.8% seen in the prior quarter.
United States equities fell on Tuesday, as losses in the Dow Jones Telecommunications, Dow Jones Financials and Dow Jones Consumer Goods sectors led shares lower. The Dow Jones Industrial Average fell 1.55% to hit a new 1-month low, while the S&P 500 index declined 1.22%, and the NASDAQ Composite index declined 0.35%.
Among financials, Morgan Stanley led losses with a 5.7% decline, while JPMorgan Chase & Co and Goldman Sachs fell nearly 4%, each. In automakers, Ford Motor Company slipped 2.9%, while Stellantis NV declined 4.4%, and General Motors Company lost 4.6%. NVIDIA's stock rose 1.6%, after entering a bear market territory in the last session with an over 8% fall.
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