The domestic equity benchmarks traded with modest losses in early trade, following the announcement by US President Donald Trump of tariffs on goods from Canada, Mexico, and China. This move raised concerns about potential retaliatory measures from these countries against US imports. The Nifty traded below the 23,350 mark. Barring the Consumer Durables index, all the other sectoral indices on the NSE were traded in red.
At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 438.80 points or 0.57% to 77,072.62. The Nifty 50 index lost 154.55 points or 0.66% to 23,327.60.
In the broader market, the S&P BSE Mid-Cap index shed 0.61% and the S&P BSE Small-Cap index lost 0.51%.
The market breadth was weak. On the BSE, 853 shares rose and 1,976 shares fell. A total of 151 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs -1,327.09 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 824.38 crore in the Indian equity market on 1 February 2025, provisional data showed.
Economy:
India's forex reserves increased $5.574 billion to $629.557 billion in the week ended January 24, the Reserve Bank of India said on Friday (January 31). In the previous reporting week, the overall kitty had dropped $1.888 billion to $623.983 billion.
For the week ended January 24, foreign currency assets, a major component of the reserves, increased from $4.758 billion to $537.891 billion, as per the RBI data.
Gold reserves increased $704 million to $69.651 billion during the week. The Special Drawing Rights (SDRs) were up $79 million to $17.861 billion, the apex bank said.
India's reserve position with the IMF was up $33 million to $4.154 billion in the reporting week, the apex bank data showed.
Stocks in Spotlight:
Aarti Industries tumbled 3.62% after the company's consolidated net profit declined 62.9% to Rs 46 crore in Q3 FY25 as compared with Rs 124 crore in Q3 FY24. Revenue from operations increased 6.2% YoY to Rs 1,940 crore in Q3 FY25.
Ganesha Ecoshpere added 3.07% after the company's consolidated net profit surged to Rs 29.71 crore during the quarter as compared with Rs 12.73 crore in Q3 FY24. Revenue from operations jumped 23.7% YoY to Rs 397.80 crore during the quarter.
Neogen Chemicals jumped 3.59% after its consolidated net profit soared to Rs 10.01 crore during the quarter as compared with Rs 1.06 crore posted in corresponding quarter last year. Net sales jumped 22.5% YoY to Rs 201.43 crore during the quarter.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.69% to 6.807 as compared with previous close 6.990.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.1750, compared with its close of 86.6200 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement shed 0.21% to Rs 81,799.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.1.31% to 109.79.
The United States 10-year bond yield declined 1.31% to 4.507.
In the commodities market, Brent crude for April 2025 settlement rose 53 cents or 0.70% to $76.20 a barrel.
Global Markets:
The US Dow Jones index futures were currently down by 647 points, signaling a weak opening for US stocks on the next trading day.
Asian stocks slumped on Monday and US equity futures pointed sharply lower after US President Donald Trump's tariffs on Canada, Mexico and China triggered fears of a broad trade war and hit to global growth.
Meanwhile, China's Caixin manufacturing PMI grew 50.1 in January, below prior month's reading of 50.5.
The Trump administration announced new tariffs on imports from Mexico, Canada, and China, starting Saturday. These tariffs are partly in response to illegal fentanyl distribution. Potential tariffs include 25% on Mexican and Canadian imports, 10% on Chinese goods, and future tariffs on chips, oil, gas (possibly by February 18th), steel, aluminum, and copper. Trump insists these tariffs are unavoidable and will generate substantial revenue, even hinting at possible European tariffs. He contrasted the US's historical reliance on tariffs with its current dependence on income tax. All three countries decried the tariffs and vowed retaliation.
The news caused US stock market declines on Friday. At the close in NYSE, the Dow Jones Industrial Average fell 0.75%, while the S&P 500 index declined 0.5%, and the NASDAQ Composite index declined 0.28%.
Apple shares closed lower as the broader market selloff erased earlier gains. The company expects sales growth in the low- to mid-single digits for its fiscal second quarter, easing concerns about flagship handset sales, which slightly missed estimates in the holiday season. CEO Tim Cook remains optimistic, citing Apple Intelligence (AI features) as a driver of future sales.
Exxon Mobil stock fell 2.5%, despite exceeding fourth-quarter profit expectations. Higher oil and gas production helped offset lower crude prices and weaker refining margins.
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