Post Session: Quick Review

Indian equity markets sank on Friday, with Nifty dropping below the 22,150 mark, as investors were nervous ahead of the release of India’s GDP data later in the day. In afternoon session, indices faced intensified selling pressure and traded near day’s low point, as investors shunned risky bets with President Donald Trump ratcheting up tariffs. Finally, markets ended deep in the red, with most sectors, including IT and Auto, witnessing losses.

Some of the important factors in today’s trade:

FIIs selling fuels market weakness: Sentiments got hit as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 556.56 crore in the capital markets on net basis on Thursday.

Trump's 25% tariffs on Mexico, Canada: Traders were cautious after U.S. President Donald Trump said his proposed 25 percent tariffs on Mexican and Canadian goods will take effect on March 4 along with an extra 10 percent duty on Chinese imports over the fentanyl opioid crisis, deepening the fear of a global trade war. 

GST collections show strong growth in January: The street overlooked the NCAER monthly review showed that GST collections, gross and net, achieved robust double-digit growth of 12.3 per cent and 10.9 per cent respectively in January 2025, as compared to subdued growth of 7.3 per cent and 3.3 per cent in December 2024.

Global front: European markets were trading in red amid concerns about the outlook for global economic growth due to tariff threats by U.S. President Donald Trump. Investors are also digesting the latest batch of earnings updates, and economic data including a report showing an increase in retail sales. Asian markets ended in red after industrial output in Japan dropped a seasonally adjusted 1.1 percent on month in January. That was shy of expectations for a decline of 1.0 percent following the 0.2 percent loss in December. On a yearly basis, industrial production was up 2.6 percent.

The BSE Sensex ended at 73198.10, down by 1414.33 points or 1.90% after trading in a range of 73141.27 and 74282.43. There was 1 stock advancing against 29 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 2.16%, while Small cap index down by 2.33%. (Provisional)

The top losing sectoral indices on the BSE were TECK down by 4.20%, IT down by 4.13%, Telecom down by 4.09%, Auto down by 3.84% and Consumer Discretionary down by 2.74%, while there was no gaining sectoral index. (Provisional)

The only gainer on the Sensex was HDFC Bank up by 1.79%. On the flip side, Indusind Bank down by 7.02%, Tech Mahindra down by 6.38%, Bharti Airtel down by 5.07%, Mahindra & Mahindra down by 4.74% and Tata Motors down by 4.18% were the top losers. (Provisional)

Meanwhile, credit ratings agency ICRA in its latest report has said that passenger vehicle (PV) sales volume in India is expected to grow at a moderate pace of 4-7 per cent in FY26 with most demand drivers remaining neutral or favourable. As for two-wheelers (2W), it estimates the industry volumes to grow at a healthy pace of 6-9 per cent in FY26, following an estimated 11-14 per cent growth in FY25.

According to the report, PV industry volumes reached an all-time high of 4.2 million units in FY24. In year-to-date (YTD) FY25, wholesale volumes remained stable led by steady production by automobile manufacturers but the industry volume growth has been modest at about 2 per cent against the backdrop of waning replacement demand and high inventory levels. Healthy retails have helped moderate dealer inventory holding in the past few months. Nonetheless the inventory continues to be moderately high.

The report said the industry's growth in FY25 is expected at 0-2 per cent. Most of the demand drivers for the industry -- disposable incomes, new model launches, cost of ownership etc -- remain neutral or favourable. Accordingly, even as the base for the industry continues to remain high, ICRA estimates the PV industry volumes to grow at a moderate pace of 4-7 per cent in FY2026. In the two-wheeler (2W) industry, it said volumes witnessed strong growth in the current fiscal at about 10 per cent YoY growth in YTD FY2025, with the industry continuing to recover from lower levels during FY2020-FY2022.

The CNX Nifty ended at 22124.70, down by 420.35 points or 1.86% after trading in a range of 22104.85 and 22450.35. There were 5 stocks advancing against 45 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Bank up by 1.86%, Shriram Finance up by 1.73%, Coal India up by 1.51%, Trent up by 0.96% and Hindalco up by 0.38%. On the flip side, Tech Mahindra down by 6.32%, Wipro down by 5.72%, Indusind Bank down by 5.41%, Mahindra & Mahindra down by 5.19% and Bharti Airtel down by 4.86% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 29.2 points or 0.36% to 8,073.32, UK’s FTSE 100 decreased 4.34 points or 0.05% to 8,751.87 and Germany’s DAX lost 89.42 points or 0.4% to 22,461.47.

Asian markets settled down on Friday ahead of the release of the Federal Reserve's preferred inflation gauge, the PCE price index, later in the day for additional clues on the US Fed's interest rate trajectory in 2025. Chinese and Hong Kong shares declined as concerns over a potential global trade war heightened. China vowed to take all necessary countermeasures and defend its legitimate rights and interests after US President Donald Trump said he would impose an additional 10% tariff on Chinese imports, intensifying a brewing trade war between the world's two largest economies. Japanese shares plunged amid much uncertainty over how earnings of companies operating overseas would be affected by the US tariff policies. Moreover, sharp declines in chip-related stocks following Nvidia's slump has also dampened market sentiments. Stock market of Taiwan is closed for Peace Memorial Day.