Markets extend opening losses amid tariff concerns, FII selling

Indian equity benchmarks made a negative start on Friday, despite positive cues from Wall Street overnight as well as Asian counterparts, as traders seemed cautious and awaited clarity on US President Donald Trump's trade policies and the outcome of Ukraine peace talks. Trump's harsh criticism of Ukrainian President Zelenskyy heightened tensions in the ongoing conflict. Sensex and Nifty soon extended their losses and were trading lower with cut of around 0.40% each in early deals. Sustained foreign fund outflows dented sentiments. Foreign Institutional Investors (FIIs) sold India stocks worth Rs 3,311.55 crore on Thursday, February 20, 2025. Traders were concerned as Moody's Analytics said India's growth will slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports.

On the sectoral front, automotive component industry stocks were in focus as credit rating agency ICRA said the Indian automotive component industry is expected to maintain a steady growth trajectory and expand by 8-10 per cent in FY26 amid speculation about a possible 25 per cent tariff imposition on imports by the US. 

The BSE Sensex is currently trading at 75473.06, down by 262.90 points or 0.35% after trading in a range of 75456.40 and 75748.72. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.06%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Metal up by 0.99%, Utilities up by 0.70%, Industrials up by 0.48%, Power up by 0.31% and PSU up by 0.20%, while Auto down by 1.28%, Healthcare down by 0.67%, Bankex down by 0.66%, FMCG down by 0.55% and IT down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 1.28%, NTPC up by 1.09%, Tata Steel up by 1.01%, Larsen & Toubro up by 0.83% and TCS up by 0.58%. On the flip side, Mahindra & Mahindra down by 3.33%, Ultratech Cement down by 1.70%, Kotak Mahindra Bank down by 1.39%, ICICI Bank down by 1.25% and Tata Motors down by 1.07% were the top losers.

Meanwhile, Moody's Analytics in its report titled 'Asia-Pacific Outlook: Chaos Ahead' has said that economic growth in India is likely to slow to 6.4 per cent in 2025, from 6.6 per cent in 2024, as new US tariffs and softening global demand weigh on exports. The agency expects global growth to ease to 3.7 per cent in 2025 and 3.5 per cent in 2026 from an estimated 3.9 per cent in 2024.

It added that growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region's fortunes. It added that high-income economies, Japan and Australia, will see modest improvements in 2025 as inflation recedes.

It projected Chinese GDP growth slowing to 4.2 per cent in 2025 and 3.9 per cent in 2026 from 5 per cent in 2024. Currently, GDP in China, APAC’s largest economy, is about 1.2% of its pre-pandemic trend but roughly in line with the global average.

The CNX Nifty is currently trading at 22812.60, down by 100.55 points or 0.44% after trading in a range of 22810.10 and 22921.00. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.70%, Eicher Motors up by 1.20%, NTPC up by 0.83%, Tata Steel up by 0.70% and TCS up by 0.65%. On the flip side, Mahindra & Mahindra down by 3.57%, Ultratech Cement down by 1.79%, Dr. Reddy's Lab down by 1.77%, Grasim Industries down by 1.77% and Kotak Mahindra Bank down by 1.51% were the top losers.

Asian markets are trading mostly in green; Hang Seng jumped 661.44 points or 2.93% to 23,238.42, Taiwan Weighted surged 220.24 points or 0.94% to 23,707.70, Shanghai Composite strengthened 25.94 points or 0.77% to 3,376.72, Jakarta Composite gained 22.45 points or 0.33% to 6,810.49 and Straits Times rose 0.42 points or 0.01% to 3,927.93. On the other hand, Nikkei 225 fell 14.18 points or 0.04% to 38,663.86 and KOSPI was down by 4.63 points or 0.17% to 2,649.43.