Key gauges end flat on monthly F&O expiry

Indian equity benchmarks exhibited a subdued performance and ended flat on Thursday as investors braced for heightened volatility ahead of the monthly derivatives expiry. After an initial uptick, the markets quickly flattened, trading within a narrow range throughout the session amid unabated foreign fund outflows and weak global market cues.

Some of the important factors in today’s trade: 

FII's selling continues: Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,529.10 crore in the capital markets on net basis on Tuesday, according to exchange data. 

India has lower exposure to US tariffs than peers in APAC region: Moody's Ratings has said India has a lower overall exposure to the US relative to others in the APAC region, although certain sectors such as food, textiles and pharmaceutical products face risks. Moody's said most companies in its rated portfolio are domestic-focused with limited exposure to the US market.

US Treasury yields rise: U.S. Treasury yields were higher as investors anticipated further economic data and digested U.S. President Donald Trump’s latest tariff threats.

Crude oil prices fall: Crude oil prices fell as hopes for a potential peace deal between Russia and Ukraine continued to pressure the market. Additionally, concerns over U.S. trade policies, including tariffs imposed by Donald Trump, raised fears of economic slowdown, further weighing on oil demand.

Global markets remain weak: European markets were trading mostly in red following U.S. President Donald Trump's ambiguous tariff threats against Europe and amid confusion over the timing of planned duties on Canada and Mexico. Asian markets ended mostly down as U.S. President Donald Trump floated a 25 percent ‘reciprocal’ tariff on European cars and other goods and signaled another month-long extension for looming levies on Canada and Mexico.

Finally, the BSE Sensex rose 10.31 points or 0.01% to 74,612.43, and the CNX Nifty was down by 2.50 points or 0.01% to 22,545.05.          

The BSE Sensex touched high and low of 74,834.09 and 74,520.78 respectively. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.97%, while Small cap index was down by 2.09%.

The few gaining sectoral indices on the BSE were Metal up by 0.70% and Telecom up by 0.11%, while Industrials down by 2.47%, Realty down by 2.06%, Power down by 1.80%, Capital Goods down by 1.58% and Auto down by 1.57% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.59%, Bajaj Finance up by 2.39%, Sun Pharma up by 1.63%, Zomato up by 1.53% and Tata Steel up by 1.17%. On the flip side, Ultratech Cement down by 4.99%, Tata Motors down by 2.05%, Mahindra & Mahindra down by 1.95%, Kotak Mahindra Bank down by 1.43% and Tech Mahindra down by 1.28% were the top losers.

Meanwhile, the Retailers Association of India (RAI) in its 58th Retail Business Survey has stated that Indian retail sector witnessed a 5 per cent sales growth in the retail sector in January 2025 compared to the same time period last year. The survey highlights key trends shaping various retail segments across different regions of the country and revealed that the highest sales growth witnessed in West India with sales growth of 7 percent, followed by North and South India with sales growth of 5 percent each, while East India experienced sales growth of 4 percent.

RAI CEO Kumar Rajagopalan has said that the 5 percent year on year retail growth recorded in January is led by food and grocery growth at 13 per cent, followed by consumer durables and quick-service restaurant with sales growth at 6 percent each, indicating a rise in consumer spending in these categories. He said the tax exemption limit of Rs 12 lakh provided by the Union Budget 2025 will provide relief to retailers after last year’s slowdown. He further added that the consumer choices are very diverse and retailers must adapt to these shifts, understand evolving preferences, and build the right operating model to stay competitive.

In December 2024, the retail sector registered a year-on-year sales growth of 5 percent. During the same period, highest sales growth of 6 percent was seen in South India followed by West and North India each recorded a 5 percent sales growth, while in East India sales grew at 4 percent. The survey’s findings suggest that consumers are willing to spend where they perceive value and retailers have to adopt with the changing trends and build their strategies accordingly for upcoming seasons.

The CNX Nifty traded in a range of 22,613.30 and 22,508.40. There were 19 stocks advancing against 31 stocks declining on the index. 

The top gainers on Nifty were Shriram Finance up by 5.18%, Bajaj Finserv up by 2.40%, Bajaj Finance up by 2.03%, Hindalco up by 1.78% and Sun Pharma up by 1.76%. On the flip side, Ultratech Cement down by 4.69%, Trent down by 3.63%, Bajaj Auto down by 2.65%, Tata Motors down by 2.09% and Mahindra & Mahindra down by 2.08% were the top losers.

European markets were trading mostly in red; France’s CAC fell 18.78 points or 0.23% to 8,125.14 and Germany’s DAX lost 216.62 points or 0.95% to 22,577.49, while UK’s FTSE 100 increased 16.54 points or 0.19% to 8,748.00.

Asian markets ended mostly down on Thursday tracking mixed cues from Wall Street overnight after US President Donald Trump floated a 25% reciprocal tariff on European cars and other goods and signaled another month-long extension for looming levies on Canada and Mexico. Hong Kong shares declined as a tech-driven rally took a breather following Nvidia's upbeat earnings forecast and amid concerns over US tariffs on semiconductor chips and key exports. However, Japanese shares rose as a weaker yen helped lift export-related shares. Chinese shares gained ahead of the National People's Congress next week.