Domestic equity benchmarks closed with slight losses on Thursday. The Nifty fell below 22,400 after reaching an intraday high of 22,558.05. Volatility was elevated due to weekly index option expiry on the NSE. Despite positive global cues initially pushing markets higher, selling pressure in heavyweight stocks across sectors dragged the Nifty down. All major indices, except banking, finished lower, with realty, auto, and metal sectors experiencing the steepest declines. Broader indices also retreated, each losing nearly 1%.
The S&P BSE Sensex declined 200.85 points, or 0.27%, to 73,828.91. The Nifty 50 index lost 73.30 points, or 0.33%, to 22,397.20.
Tata Motors (down 1.95%), Bajaj Finance (down 0.94%) and Reliance Industries (down 0.73%) were major drags.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 0.77%, and the S&P BSE Small-Cap index declined 0.62%.
The market breadth was weak. On the BSE, 1,518 shares rose and 2,457 shares fell. A total of 130 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.01% to 13.28.
The stock market will remain closed tomorrow, 14th March 2025, on account of Holi.
Economy:
India's retail inflation eased to a seven-month low of 3.61% in February 2025, down from 4.31% in January, as food price pressures softened, according to government data released on Wednesday. This brings inflation below the Reserve Bank of India's (RBI) medium-term target of 4% for the first time since August 2024.
A sharp decline of 222 basis points is observed in food inflation in February 2025 in comparison to January 2025. The food inflation in February 2025 is the lowest after May 2023, the data released by the National Statistics Office (NSO) showed.
The NSO added that the significant decline in headline inflation and food inflation during February is mainly attributed to the decline in inflation of vegetables, egg, meat and fish, pulses and products, and milk and products.
Meanwhile, India's industrial output growth picked up to 5% year-on-year in January 2025, compared to 3.2% in December 2024, signalling resilient manufacturing activity despite global headwinds.
Manufacturing output, which constitutes a major portion of the IIP, grew 5.5% in January, compared to 3.4% in the previous month. Mining activity also accelerated, rising 4.4% against 2.7% in December. However, the electricity sector saw a notable slowdown, growing at 2.4%, down from 6.2% month-on-month (MoM).
Among key industrial categories, primary goods expanded 5.5%, up from 3.8% MoM, while capital goods growth moderated to 7.8% from 10.4% in December. Infrastructure goods posted 7% growth, slightly lower than 7.4% MoM.
Consumer durables output stood at 7.2%, down from 8.3% in the previous month, indicating moderate demand in discretionary spending. Meanwhile, consumer non-durables contracted 0.2%, though it was a significant improvement from December's steep 7.5% decline.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was up 1.81% to 6.804 as compared with previous close 6.791.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.0100, compared with its close of 87.2250 during the previous trading session.
MCX Gold futures for the 4 April 2025 settlement shed 0.15% to Rs 86,025.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.15% to 103.55.
The United States 10-year bond yield fell 0.19% to 4.280.
In the commodities market, Brent crude for May 2025 settlement gained 44 cents, or 0.63%, to $70 a barrel.
Global Markets:
Most European stocks declined on Thursday, as investors will be keeping an eye on earnings from Hannover Re and Deliveroo, with no major data releases due today.
Most Asian shares ended lower following an overnight rebound in U.S. tech stocks. However, persistent concerns over trade tensions and global economic uncertainties suggest that market volatility is not going away anytime soon.
On Wednesday, major U.S. stock indices closed higher after a cooler-than-expected US CPI inflation report, but gains were tempered by renewed tariff threats from President Donald Trump. The S&P 500 climbed 0.5%, while the tech-heavy NASDAQ Composite surged 1.2%. The Dow Jones Industrial Average, however, edged 0.2% lower.
Inflation data showed a slight cooling, with the U.S. consumer price index (CPI) rising 2.8% year-over-year in February, down from January's 3% increase. The core CPI, which excludes volatile food and energy prices, recorded a 3.1% uptick'its slowest pace since 2021.
Despite easing inflation, investors remain wary. Trump's decision to impose 25% tariffs on all steel and aluminum imports has reignited fears of higher prices, potentially offsetting any economic relief from cooling inflation.
The European Union quickly responded, announcing counter-tariffs on $28 billion worth of U.S. goods, set to take effect in April. Canada followed suit, slapping retaliatory tariffs on $21 billion worth of American imports, including steel and aluminum. As tensions mount, concerns of a global trade war are intensifying, raising the risk of rising consumer prices and potential job losses across key industries.
Stocks in Spotlight:
Larsen & Toubro (L&T) shed 0.17%. The company announced that its joint venture secured a 'large' order to build a desalination plant in Saudi Arabia.
JSW Energy slipped 0.29%. The company said that it has signed a power purchase agreement (PPA) with West Bengal State Electricity Distribution Company (WBSEDCL) for a Greenfield 1,600 MW (2 x 800 MW) supercritical thermal power plant.
Meanwhile, the company announced that its wholly-owned subsidiary, JSW Neo Energy has entered into a share purchase agreement and acquired 100% shares of Virya Infrapower.
Zydus Lifesciences declined 0.67%. The company's venture capital arm, Zynext Ventures USA LLC announced its investment in Illexcor Therapeutics (Illexcor), a pioneering biopharmaceutical company developing next-generation oral therapies for sickle cell disease (SCD).
Yatra Online surged 6.23% after the company informed that Rohan Purshottamdas Mittal, chief financial officer (CFO) and key managerial personnel (KMP) of the company, has resigned to pursue new opportunities.
Bharat Electronics (BEL) rose 1.21% after the company announced that it has received a contract worth Rs 2,463 crore from the Ministry of Defence for the supply and services of Ashwini Radars to the Indian Air Force.
Nazara Technologies lost 0.61%. The company announced that Sudhir Kamath has tendered his resignation from the position of chief operating officer (COO) of the company, effective from 1 April 2025.
VA Tech Wabag added 0.37%. The company announced that it has secured orders worth Rs 360 crore from GAIL (India) and Indian Oil Corporation (IOCL).
HPL Electric & Power rallied 4.79% after the company announced that it has received smart meter orders worth Rs 369.90 crore from its regular leading customers for the supply of smart meters.
GP Eco Solutions India hit an upper circuit of 2% after the company announced that it has secured an EPC turnkey contract for a 128 MWp ground-mounted solar power project valued at over Rs 300 crore.
Polycab India shed 0.14%. The company said that it has executed an agreement with Bharat Sanchar Nigam (BSNL) as project implementation agency (PIA) for Amended BharatNet Program.
BEML advanced 2.81% after the company announced it has signed two memorandums of understanding (MoUs) to expand its presence in the rail and dredging sectors.
NTPC Green Energy declined 1.29%. The company announced that its subsidiary, NTPC Renewable Energy, has declared the second and final phase of its 105 MW Shajapur Solar Project in Madhya Pradesh fully operational.
Premier Explosives fell 0.25%. The company announced that it has received an export order for Rs 21.45 crore from international clients.
Gensol Engineering hit a lower circuit of 5% to Rs 261.70. The company's board approved 10-for-1 stock split. The board also approved fund-raising initiatives amounting to Rs. 600 crore aimed at significantly enhancing its financial standing. This initiative, combined with the company's ongoing divestments, including the sale of vehicles and the sale of a subsidiary, is expected to significantly improve Gensol's debt-equity ratio, positioning it for long-term financial strength and resilience.
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0 mins read . Dec 18, 2024
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