Key gauges end lower amid tariff fears

Indian equity benchmarks ended over half percent lower on Friday, weighed down by sustained foreign fund outflows. Weak US markets and tariff threats also dented investors sentiment. Barring metals, the slump in domestic markets was led by weakness in Auto, Healthcare, Consumer Discretionary and Oil & Gas shares. 

Some of the important factors in today’s trade:  

India's GDP growth to slow to 6.4% in 2025: 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.

FII outflows remained high: Foreign institutional investors (FIIs) offloaded equities worth Rs 3,311.55 crore on net basis on Thursday, according to exchange data. 

Treasury yields edged lower: U.S. Treasury yields were slightly lower as investors awaited more economic data, and assessed the latest comments from Federal Reserve officials on stubborn inflation and the potential impact of tariffs. 

India’s private sector activity at 6-month high: The HSBC Flash India PMI report said private sector activity grew at the highest pace in six months in February. The Purchasing Managers' Index (PMI) output rose to 60.6 in February. 

Global front: Asian markets settled higher on Friday as investors waited for clarity on U.S. President Donald Trump's trade policies and eagerly awaited the outcome of Ukraine peace talks. European markets were trading higher even as the data from the HCOB's latest Purchasing Managers Index (PMI) Survey showed the Eurozone manufacturing sector improved but remained in contraction while the services sector activity eased in February. 

Finally, the BSE Sensex fell 424.90 points or 0.56% to 75,311.06, and the CNX Nifty was down by 117.25 points or 0.51% to 22,795.90.        

The BSE Sensex touched high and low of 75,748.72 and 75,112.41 respectively. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 1.18%, while Small cap index was down by 0.43%.

The lone gaining sectoral index on the BSE was Metal up by 1.23%, while Auto down by 2.60%, Healthcare down by 1.60%, Consumer Discretionary down by 1.49%, Oil & Gas down by 1.42% and Realty down by 1.33% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.88%, Larsen & Toubro up by 1.10%, HCL Technologies up by 0.75%, Asian Paints up by 0.35% and HDFC Bank up by 0.31%. On the flip side, Mahindra & Mahindra down by 6.07%, Adani Ports & SEZ down by 2.57%, Tata Motors down by 2.46%, Sun Pharma down by 1.60% and Power Grid Corporation down by 1.52% were the top losers.

Meanwhile, Union Commerce Minister Piyush Goyal said that the Indian rupee has performed well compared to other global currencies due to the country's strong foreign currency reserves. He also said that a skill development centre and a startup incubation centre will come up at AURIC (the industrial node of Shendra and Bidkin) in the near term. Talking about the downfall of the Indian rupee he said, the Indian rupee has strengthened in comparison to the emerging economies of the country. After US elections almost all the currencies across the globe have come down. But India had good reserves of foreign exchange so the Indian rupee performed better than that of other currencies.

The minister further said the government has decided to start a skill development centre in AURIC which spread over 20 thousand square feet along with a startup incubation hub of 10 thousand square feet, which will help to boost employment and research. Further, the government has decided to start 100 plus industrial hubs in different parts of the country with plug-and-play infrastructure, which will be a hotspot of industrial growth.

Talking about the undeveloped industrial plots, he said the proposals come when someone demands lands for industrial purposes. The government has given instruction to study these proposals and see why the units are not established even after a long period of buying the plot. About the lack of land at AURIC as the land in possession of Maharashtra Industrial Township (MITL) he said, he has spoken to CEO, MIDC (Maharashtra Industrial Development Corporation) over it and will talk to CM Devendra Fadnavis for the same.

The CNX Nifty traded in a range of 22,921.00 and 22,720.30. There were 13 stocks advancing against 37 stocks declining on the index. 

The top gainers on Nifty were Hindalco up by 2.09%, Tata Steel up by 1.85%, Eicher Motors up by 1.63%, Larsen & Toubro up by 1.21% and SBI Life Insurance up by 0.73%. On the flip side, Mahindra & Mahindra down by 6.20%, Adani Ports & SEZ down by 2.67%, BPCL down by 2.67%, Tata Motors down by 2.52% and Adani Enterprises down by 2.48% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 12.68 points or 0.15% to 8,675.65, France’s CAC rose 40.18 points or 0.49% to 8,162.76 and Germany’s DAX gained 38.88 points or 0.17% to 22,353.53.

Asian markets settled higher on Friday due to optimism over China's artificial intelligence potential, and after US President Donald Trump's comments raised expectations of a de-escalation in the trade war between the world's two largest economies, the United States and China. Hong Kong shares surged, led by Alibaba stock, as euphoria continued over DeepSeek’s potential in the artificial intelligence sector. Japanese shares gained as the yen retreated, even after Japan's core consumer inflation hit 3.2% in January for its fastest pace in 19 months reinforced expectations that the central bank will keep raising interest rates from levels still seen as low.