Key gauges end flat on Tuesday

Indian equity benchmarks erased all of their initial gains and ended flat on Tuesday, as investors continued to stay risk averse as global uncertainty coupled with strong FII selling kept the mood sluggish. Covering of short positions due to the expiry of the futures contract, too, weighed on the markets.  

Some of the important factors in today’s trade:

Foreign fund outflows: On the institutional front, foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 6,286.70 crore on February 24. 

Rupee plunge to a new low: The rupee fell sharply by 46 paise to trade at 87.19 (provisional) against the US dollar due to month-end dollar demand by importers amid uncertainty over US trade tariffs.

U.S. treasury yields fall: U.S. Treasury yields ticked lower as investors looked to a busy week ahead, with a flurry of economic data due including a key inflation reading and insights on housing.

Sales of listed private non-financial companies rise 8% during Q3:2024-25: The RBI’s data has showed that the listed private non-financial companies logged 8.0 per cent (y-o-y) sales growth during Q3:2024-25 as compared with 5.4 per cent in the previous quarter and 5.5 per cent in the corresponding quarter a year ago. 

Railways stocks remain in limelight: Union minister Ashwini Vaishnaw said railways will achieve 100 per cent electrification in the next fiscal year and is making rapid progress in the usage of renewable energy as well.

Global front: Asian markets finished down as fresh U.S. trade measures against China and President Donald Trump's comments that tariffs on Canada and Mexico 'will go forward' rekindled fears of a global trade war. European markets were trading mostly in green even as official data showed the German economy contracted in the fourth quarter, in line with estimates. 

Finally, the BSE Sensex rose 147.71 points or 0.20% to 74,602.12, and the CNX Nifty was down by 5.80 points or 0.03% to 22,547.55.         

The BSE Sensex touched high and low of 74,785.08 and 74,400.37 respectively. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.57%, while Small cap index was down by 0.45%.

The top gaining sectoral indices on the BSE were Telecom up by 0.66%, Auto up by 0.43%, Consumer Durables up by 0.37%, FMCG up by 0.26% and Consumer Discretionary up by 0.04%, while Metal down by 1.69%, Oil & Gas down by 1.34%, Realty down by 1.27%, Energy down by 1.10% and PSU down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.61%, Bharti Airtel up by 2.55%, Bajaj Finance up by 1.65%, Zomato up by 1.37% and Nestle up by 1.34%. On the flip side, Sun Pharma down by 1.58%, Power Grid Corporation down by 1.25%, TCS down by 1.19%, Tech Mahindra down by 1.15% and Asian Paints down by 1.04% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India and the UK resumed their negotiations for the proposed free trade agreement (FTA), which is expected to double or even triple bilateral trade from the current $20 billion in the next 10 years. Goyal made a case for faster and liberal issuance of visas for smooth movement of businessmen and professionals, besides a social security agreement to avoid double contribution to social security funds by Indian professionals working for limited period in Britain.

The 14th round of negotiations for the FTA, which began on January 10 last year, was underway till May 2024 when the process was paused by the UK side due to their elections. The resumption of talks would aim to addressing issues which are yet not ironed out. The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services, including banking and insurance. According to Goyal, both sides have the flexibility to significantly reduce tariffs to make their businesses more competitive. The negotiations have started after a gap of over eight months due to elections. The talks are happening after the UK general elections that resulted into the Labour Party coming to power. The negotiations were launched on January 13, 2022.

Goyal said it’s never ‘too early’ or ‘too late’ to conclude a good agreement as these pacts are for a long-term future. He added ‘One has to crystal gaze may be 20-30-50 years into the future and make a robust agreement which is a win-win for both sides and therefore neither should we rush into things, but it’s always good to conclude fast. So we will have speed, but not haste’.

The CNX Nifty traded in a range of 22,625.30 and 22,513.90. There were 19 stocks advancing against 31 stocks declining on the index. 

The top gainers on Nifty were Bharti Airtel up by 2.32%, Mahindra & Mahindra up by 2.13%, Bajaj Finance up by 1.40%, Nestle up by 1.36% and Titan company up by 0.87%. On the flip side, Dr. Reddy's Lab down by 3.10%, Hindalco down by 3.01%, Trent down by 2.41%, Hero MotoCorp down by 1.72% and Sun Pharma down by 1.70% were the top losers.

European markets were trading mostly in green; Germany’s DAX gained 22.66 points or 0.1% to 22,448.59 and UK’s FTSE 100 increased 23.28 points or 0.27% to 8,682.26, while France’s CAC fell 3.78 points or 0.05% to 8,087.21.

Asian markets finished down on Tuesday tracking weak performance on Wall Street overnight after US President Donald Trump's comments that tariffs on Canada and Mexico will proceed as planned once the month-long delay ends next week. Chinese and Hong Kong shares declined as investors were rattled by an order from US President Donald Trump to restrict Chinese investments in strategic areas such as chips, AI and aerospace. Seoul shares fell as the Bank of Korea cut interest rates by 25 basis points to 2.75% and also lowered its GDP forecast for this year to 1.5%, down from 1.9% in the November forecast amid ongoing political uncertainty surrounding President Yoon Suk Yeol's impeachment trial. Japanese shares dropped, even as shares in Japan's five largest trading houses surged after Warren Buffett said Berkshire Hathaway's stakes in them would likely increase somewhat over time.