Sensex, Nifty trade under pressure in early deals amid FII outflows

Indian equity benchmarks made flat-to-positive start on Tuesday but soon slipped below neutral lines as investors assessed the tariffs imposed by US President Donald Trump. The US President Donald Trump signed an order on Monday imposing 25 per cent tariffs on steel and aluminium imports to the US. Sensex and Nifty are trading under pressure in early deals led by selling in Realty, Industrials and PSU counters. Broader indices -- BSE Mid & Small cap – are under performing larger peers with losses of around 2 per cent each. The continued selling by foreign institutional investors (FIIs) dampened sentiments in domestic markets. FIIs net sold Indian equities worth Rs 2,463.72 crore on February 10.

On the global front, Asian markets are trading mixed as traders remain cautious amid raising fears of a brewing global trade war and its potential impact on the global economy. Also, China's retaliatory tariffs on U.S. goods are set to take effect later in the day. Besides, the Japanese stock market is closed on account of National Foundation Day and Malaysia is closed on account of Thaipusam. 

The BSE Sensex is currently trading at 77057.94, down by 253.86 points or 0.33% after trading in a range of 77042.68 and 77387.28. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.52%, while Small cap index was down by 2.40%.

The only gaining sectoral indices on the BSE were TECK up by 0.19% and IT up by 0.18%, while Realty down by 2.74%, Industrials down by 1.73%, PSU down by 1.60%, Healthcare down by 1.56%, Capital Goods down by 1.37% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.19%, HCL Technologies up by 0.87%, Maruti Suzuki up by 0.69%, Adani Ports & SEZ up by 0.49% and Hindustan Unilever up by 0.27%. On the flip side, Zomato down by 3.06%, Power Grid down by 1.71%, Kotak Mahindra Bank down by 1.37%, Tata Motors down by 1.21% and Bajaj Finserv down by 1.09% were the top losers.

Meanwhile, a survey of the Federation of Indian Chambers of Commerce and Industry (FICCI) has said that the growth momentum of India’s manufacturing sector continues with 83 per cent of manufacturers reporting either higher or stable production levels, making this the second-highest index recorded in recent years. The survey, which assessed manufacturing performance for Q3 FY 2024-25 (October-December 2024), indicates sustained production levels, stable investment plans, and promising export growth. This is a significant improvement from 73 per cent in Q3 FY24, signalling continued momentum in industrial activity.

The investment outlook also remains positive, with 42 per cent of respondents planning to expand their manufacturing capacities in the next six months, a figure consistent with the previous quarter’s assessment. Manufacturers are witnessing strong domestic demand, with 83 per cent expecting an increase in order volumes compared to the previous quarter. However, some concerns remain about a potential slowdown in demand in the near future.

The survey covered eight major manufacturing sectors, including automotive, capital goods, electronics, chemicals, metals, and textiles, representing a combined annual turnover of Rs 4.7 lakh crore. The overall capacity utilization in the sector remains steady at 75 per cent, indicating stable economic activity.

The CNX Nifty is currently trading at 23300.70, down by 80.90 points or 0.35% after trading in a range of 23292.85 and 23390.05. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.02%, Grasim Industries up by 1.92%, Infosys up by 1.14%, HCL Technologies up by 0.76% and Trent up by 0.74%. On the flip side, Eicher Motors down by 5.17%, Apollo Hospital down by 3.47%, Coal India down by 1.98%, Power Grid down by 1.77% and Kotak Mahindra Bank down by 1.56% were the top losers.

Asian markets are trading mostly in red; Hang Seng slipped 126.25 points or 0.59% to 21,395.73, Jakarta Composite declined 105.29 points or 1.58% to 6,542.85, Straits Times fell 16.27 points or 0.42% to 3,858.86 and Shanghai Composite weakened 5.34 points or 0.16% to 3,316.83. On the other hand, Taiwan Weighted rose 96.82 points or 0.42% to 23,348.96 and KOSPI was up by 21.73 points or 0.86% to 2,543.00.