Post Session: Quick Review

The local equity markets continued their southward journey for fifth consecutive day and ended with cut of over a percent. After making cautious start, markets entered into red and added more losses in second half of the session as traders preferred to play safe amid global uncertainty. 

Some of the important factors for the markets:

Uncertainty about Trump’s tariff hike: Sentiments remained downbeat after the US President Donald Trump signed an order on Monday imposing 25 per cent tariffs on steel and aluminium imports to the US. Besides, Trump's top economic adviser Kevin Hassett reportedly said that India has high tariffs that lock out imports.

Unabated foreign fund outflows: Traders remained cautious amid unabated foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,463.72 crore on Monday, according to exchange data.

Retail inflation likely to ease in January: India’s Consumer price index (CPI) data going to be out on February 12. Traders were hoping that retail inflation is likely to ease in January. 

Global front: European markets were trading mostly in red with U.S. President Donald Trump's tariff announcement on metals and an upcoming semi-annual monetary policy testimony from Federal Reserve Chair Jerome Powell in focus. Asian markets settled mostly down in thin trade on Tuesday amidst China’s retaliatory tariffs on US goods and increased scrutiny on US tech giants like Nvidia, Apple, and Google, using antitrust investigations and regulatory delays.

The BSE Sensex ended at 76,293.60, down by 1018.20 points or 1.32% after trading in a range of 76,030.59 and 77,387.28. There were 1 stocks advancing against 29 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 2.88%, while Small cap index was down by 3.40%. (Provisional)

The top losing sectoral indices on the BSE were Realty down by 3.14%, Industrials down by 2.87%, Healthcare down by 2.78%, Consumer discretionary down by 2.73%, Capital Goods down by 2.59%, while there were no gaining sectoral indices on the BSE. (Provisional)

The only gainer on the Sensex was Bharti Airtel up by 0.19%. On the flip side, Zomato down by 5.24%, Tata Steel down by 2.91%, Tata Motors down by 2.70%, Bajaj Finserv down by 2.70% and Power Grid down by 2.68% 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 ended at 23,071.80, down by 309.80 points or 1.32% after trading in a range of 22,986.65 and 23,390.05. There were 4 stocks advancing against 46 stocks declining on the index.

The few gainers on Nifty were Adani Enterprises up by 1.35%, Grasim Industries up by 0.74%, Trent up by 0.61% and Bharti Airtel up by 0.22%. On the flip side, Eicher Motors down by 6.80%, Apollo Hospital down by 6.57%, Shriram Finance down by 3.97%, Coal India down by 3.10% and Bharat Electronics down by 3.07% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 3.49 points or 0.04% to 8,764.31 and France’s CAC was down by 1.45 points or 0.02% to 8,004.77. On the flip side, Germany’s DAX was up by 16.94 points or 0.08% to 21,928.68.

Asian markets settled mostly down in thin trade on Tuesday as both Japanese and Malaysian markets were closed for holiday, while investors were cautiously awaiting a testimony from Federal Reserve Chair Jerome Powell and a reading on US inflation for cues on the US interest-rate outlook. Chinese and Hong Kong shares declined due to US trade policy shifts and deflation concerns as retaliatory Chinese duties on US energy and some goods came into effect on Monday.