The key equity benchmarks closed lower on Wednesday, weighed down by weakness in heavyweight stocks as the US-China trade war escalated. Investors are also focused on the Reserve Bank of India's (RBI) monetary policy meeting, which began today under the new central bank governor. The market widely expects a rate cut when the meeting concludes on Friday.
The Nifty settled below the 23,700 level. While metal and PSU bank shares saw demand, realty, FMCG, and consumer durable shares declined.
Investors are currently assessing the positive domestic outlook, driven by a favorable budget, against ongoing global uncertainties stemming from the trade war. Declining US bond yields and lower crude oil prices have provided some support to market sentiment. However, the rupee's depreciation could potentially offset these gains.
The S&P BSE Sensex tumbled 312.53 points or 0.40% to 78,271.28. The Nifty 50 index fell 42.95 points or 0.18% to 23,696.30.
Titan Company (down 3.02%), Larsen & Toubro (down 1.72%) and ITC (down 1.6%) were major drags.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.69% and the S&P BSE Small-Cap index added 1.42%.
The market breadth was strong. On the BSE, 2,548 shares rose and 1,417 shares fell. A total of 141 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.46% to 14.08.
The Indian rupee hit a record low against the US dollar on Wednesday. The currency opened at 87.13 and slipped further to 87.4975 against the greenback in early trades. It was currently trading at 87.435.
Economy:
In January, the seasonally adjusted HSBC India Services PMI Business Activity Index stood at 56.5, indicating a sharp rate of expansion in business activity compared to the previous month. However, the headline figure declined from 59.3 in December to its lowest level since November 2022. This drop suggests a slowdown in the pace of growth within the sector.
The HSBC India Composite Output Index dropped from 59.2 in December to a 14-month low of 57.7. Despite the decline, the latest figure remained above the long-run series average, indicating that the economy is still experiencing a robust upturn.
Numbers to Track:
The yield on India's 10-year benchmark federal paper grew 1.57% to 6.777 as compared with the previous close of 6.780.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.4400 compared with its close of 87.0750 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement added 1.08% to Rs 84,710.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.53% to 107.43.
The United States 10-year bond yield fell 0.93% to 4.471.
In the commodities market, Brent crude for April 2025 settlement declined 61 cents or 0.80% to $75.59 a barrel.
Global Markets:
The European market traded mixed on Wednesday as investors awaited earnings reports from several key companies, including Handelsbanken, TotalEnergies, Akzo Nobel, Credit Agricole, Novo Nordisk, GSK, Vestas Wind, and Banco Santander, among others. On the data front, the latest purchasing managers' index data from the euro zone will be released on Wednesday
Markets in Asia ended mixed after Wall Street rose overnight, shrugging off Trump tariffs and China's retaliatory measures.
US President Donald Trump extended the proposed 25% import duties on Canada and Mexico by 30 days but remained firm on China, allowing his 10% tariffs on Chinese goods to take effect on Tuesday.
In response, Beijing hit back with a 15% tariff on US coal and liquefied natural gas imports, along with an additional 10% duty on crude oil, agricultural equipment, and automobiles, effective February 10.
China's commerce ministry also imposed export controls on rare earths and exotic materials, where the country dominates global supply. The restricted materials include tungsten, tellurium, ruthenium, and molybdenum.
The Caixin/S&P Global Services purchasing managers' index (PMI) slipped to 51.0 from 52.2 in December but remained above the 50-mark that separates expansion from contraction on a monthly basis.
Despite trade tensions, US markets rebounded on Tuesday, recovering from steep losses on Monday. The S&P 500 climbed 0.7%, the NASDAQ Composite jumped 1.4%, and the Dow Jones Industrial Average edged up 0.3%.
However, Alphabet's Class A shares tumbled 7.4% in aftermarket trading after the company's fourth-quarter revenue fell short of expectations, particularly due to weak earnings from its cloud division, which is closely linked to AI.
Stocks in Spotlight:
Titan Company slipped 3.02% after the company reported a 4.80% decline in standalone net profit to Rs 990 crore in Q3 FY25 as against Rs 1,040 crore posted in Q3 FY24. However, revenue from operations jumped 24.32% year on year (YoY) to Rs 16,053 crore in the quarter ended 31 December 2024.
Tata Power Company added 1.12% after the company's consolidated net profit rose 8.2% YoY to Rs 1,030.70 crore in the quarter ended 31st December 2024. Net sales increased 5.1% to Rs 15,391.06 crore in Q3 FY25 as compared with Rs 14,651 crore in Q3 FY24.
Info Edge (India) advanced 3.10% after the company announced that its board has approved a 5-for-1 stock split.
Tega Industries surged 7.39% after the company's consolidated net profit jumped 52.31% to Rs 54.24 crore in Q3 FY25 as against Rs 35.61 crore posted in Q3 FY24. Revenue from operations grew 20.29% to Rs 409.26 crore in the quarter ended 31 December 2024.
Metropolis Healthcare rallied 4.71% after the company reported 15.4% increase in consolidated net profit to Rs 31.36 crore in Q3 FY25 as against Rs 27.16 crore posted in Q3 FY24. Revenue from operations grew 10.9% YoY to Rs 322.77 crore in the quarter ended 31 December 2024.
PC Jeweller rallied 4.94% after the company reported consolidated net profit of Rs 147.96 crore in Q3 FY25 compared with net loss of Rs 197.98 crore in Q3 FY24. Revenue from operations surged to Rs 639.45 crore in Q3 FY25 as compared with Rs 40.06 crore in Q3 FY24.
Angel One rallied 6.27% after the stockbroker's client base jumped 47.5% to 30.13 million in January 2025 as compared with 20.43 million in January 2024.
Force Motors jumped 6.02% after the company's total sales jumped 20.34% to 3,597 units in January 2025 compared with 2,989 units sold in January 2024.
Abbott India jumped 6.28% after the company's net profit increased 16.01% to Rs 360.78 crore in Q3 FY25 as against Rs 310.98 crore posted in Q3 FY24. Revenue from operations grew by 12.32% to Rs 1,614.28 crore in the quarter ended 31 December 2024.
Zydus Lifesciences rose 0.49%. The company reported a 29.62% jump in consolidated net profit of Rs 1,023.5 crore inQ3 FY25 compared with Rs 789.6 crore in Q3 FY24. Revenue from operations increased 16.96% YoY to Rs 5,269.1 crore during the quarter.
V-Mart Retail fell 0.22%. The company reported a net profit of Rs 72 crore in Q3 FY25, zoomed 154% as against Rs 28 crore posted in Q3 FY24. Revenue from operations jumped 15% year on year (YoY) to Rs 1,027 crore in the quarter ended 31 December 2024.
Symphony dropped 8.42% after the company reported consolidated net loss of Rs 10 crore in Q3 FY25 as against net profit of Rs 41 crore posted in corresponding quarter last year. Revenue from operations declined 2.02% year on year (YoY) to Rs 242 crore in the December 2024 quarter.
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