Weak trade persist; Nifty below 22,600 mark

Indian equity benchmarks continued their weak trade in morning session on account of selling in frontline blue-chip counters. Investors took cautious approach with exchange data showed foreign institutional investors (FIIs) offloaded equities worth Rs 3,449.15 crore on a net basis on Friday. Some concern also came as Reserve Bank of India’s (RBI) data showed that bank credit as well as deposits witnessed deceleration during the October-December quarter (Q3FY25) sequentially. Bank credit growth (y-o-y) decelerated to 11.8 per cent in December 2024 from 12.6 per cent in September 2024, while aggregate deposits increased at a marginally lower pace at 11 per cent as compared to 11.7 per cent growth in July-September period. On the global front, Asian markets are trading mostly in red, as traders reacted to a report showing U.S. consumer sentiment dropped more than expected in February to a 15-month low and inflation expectations rocketed as households worried that President Donald Trump's plans for steep and broad-based tariffs would eat into their purchasing power.

The BSE Sensex is currently trading at 74581.30, down by 729.76 points or 0.97% after trading in a range of 74541.63 and 74907.04. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.05%, while Small cap index was down by 1.18%.

The top losing sectoral indices on the BSE were IT down by 2.30%, TECK down by 2.13%, Telecom down by 1.88%, Metal down by 1.16% and Power down by 1.11%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Sun Pharma up by 0.92%, Maruti Suzuki up by 0.65%, Mahindra & Mahindra up by 0.64%, Tata Motors up by 0.42% and Nestle up by 0.30%. On the flip side, HCL Technologies down by 3.12%, Tech Mahindra down by 2.14%, Infosys down by 2.05%, TCS down by 1.79% and ICICI Bank down by 1.55% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that ‘Efforts are being made to balance trade between India and Japan, with a focus on increasing Indian exports to ensure reciprocal benefits’. India's exports to Japan during April-January this fiscal rose by 21.12 per cent to $5.1 billion, while imports grew by 9.1 per cent to $15.92 billion, leaving a trade deficit of $10.82 billion in favour of Japan. In 2023-2024, the country’s export to Japan was $5.15 billion and imports were $17.7 billion, leaving trade gap of $12.55 billion. Both countries have inked Comprehensive Economic Partnership Agreement (CEPA) in 2011. 

The minister also invited Japanese firms to increase collaboration in areas such as green energy, renewable energy, high-tech manufacturing of semiconductors, electronic goods, and artificial intelligence. He pointed out that major infrastructure projects such as the Mumbai-Ahmedabad High-Speed Rail and metro systems in Delhi, Ahmedabad, Bengaluru, and Chennai reflect Japan's active participation in India's development. He expressed optimism about the commencement of the Shinkansen bullet train service between Mumbai and Ahmedabad in the near future. 

India has received over $43 billion foreign direct investment (FDI) from Japan between 2000 and 2024, making it India's fifth-largest source of foreign investment. The minister further said the two countries are collaborating to build globally competitive brands, citing the example of Maruti exporting vehicles to various countries, including Japan. He reiterated the objective of increasing the share of manufacturing in India's GDP to 25 per cent (from the current about 16-17 per cent), with Japan playing a crucial role in achieving this target.

The CNX Nifty is currently trading at 22567.35, down by 228.55 points or 1.00% after trading in a range of 22548.35 and 22668.05. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.23%, Mahindra & Mahindra up by 1.03%, Eicher Motors up by 1.00%, Maruti Suzuki up by 0.72% and Cipla up by 0.43%. On the flip side, HCL Technologies down by 3.49%, Wipro down by 3.17%, Tech Mahindra down by 2.23%, Infosys down by 2.20% and TCS down by 2.06% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 136.99 points or 0.58% to 23,593.26, Hang Seng declined 129.1 points or 0.55% to 23,348.82, KOSPI dropped 15.99 points or 0.61% to 2,638.59, Jakarta Composite plunged 49.68 points or 0.74% to 6,753.32 and Shanghai Composite weakened 3.82 points or 0.11% to 3,375.29.

On the flip side, Straits Times rose 12.25 points or 0.31% to 3,942.19.