Post Session: Quick Review

Indian equity markets continued their downward trend, while Nifty ended below 22,100 points, pressured by losses in heavyweight and IT stocks. Indices made a negative start, amid persistent FII selling, continuing uncertainty around tariffs and ongoing geopolitical tensions between Russia and Ukraine. In afternoon session, indices came off from day’s low point as investors preferred to buy stocks at reduced levels, but remained lower till end of the day.

Some of the important factors in today’s trade:

FIIs continue to sell Indian stocks: Traders were worried with the exchange data showing that Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,788.29 crore on Monday. 

Trump confirms tariffs on Canada, Mexico, China: U.S. President Donald Trump confirmed the 25% tariffs on Canada and Mexico as well as the additional 10 percent tariff on China. The reciprocal tariffs on other U.S. trade partners will be imposed on April 2. 

FDI in India drops 5.6% in Q3 amid global uncertainties: Traders were concerned as Department for Promotion of Industry and Internal Trade (DPIIT) data showed that the foreign direct investment in India dipped by 5.6 per cent year-on-year to $10.9 billion in October-December quarter of this fiscal due to global economic uncertainties. 

Global front: European markets were trading in red, after U.S. President Donald Trump paused all military aid for Ukraine to ensure that it will contribute to a solution. Trump also confirmed tariffs on Mexico, Canada and China, stirring concerns about inflation and a possible global recession. Most of the Asian markets ended in red, as Japan's consumer sentiment decreased unexpectedly in February to the lowest level in almost two years. The survey data from the Cabinet Office showed that the seasonally adjusted consumer confidence index weakened to 35.0 in February from 35.2 in January.

The BSE Sensex ended at 72989.93, down by 96.01 points or 0.13% after trading in a range of 72633.54 and 73033.18. There were 11 stocks advancing against 19 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.08%, while Small cap index up by 1.28%. (Provisional)

The top gaining sectoral indices on the BSE were PSU up by 1.70%, Capital Goods up by 1.41%, Industrials up by 1.29%, Oil & Gas up by 1.10% and Power up by 0.65%, while Auto down by 1.13%, TECK down by 0.86%, IT down by 0.77%, Telecom down by 0.45%, and FMCG down by 0.40% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 2.98%, Zomato up by 2.23%, TCS up by 1.04%, HDFC Bank up by 0.78% and ICICI Bank up by 0.68%. On the flip side, Bajaj Finserv down by 2.70%, HCL Technologies down by 2.40%, Nestle down by 1.82%, Asian Paints down by 1.78% and Infosys down by 1.47% were the top losers. (Provisional)

Meanwhile, credit rating agency ICRA’s analysis of 17 leading, listed entities (accounting for around 55% of the total revenues of the industry) operating in the capital goods segment indicates prospects of continued healthy revenue growth of around 13-15% for FY2025 and FY2026. Further, the margins are expected to expand and ICRA expects median operating profit growth of around 16-18% for FY2026, even after witnessing robust growth in the last 3-4 years.

ICRA said the sustained investments in the end-user industries, especially the strong capacity additions in the renewable power space and simultaneously high capex in the transmission and distribution infrastructure bodes well for the demand prospects of the capital goods industry. The order book position of the ICRA sample set companies is at all-time high levels and is growing at a healthy pace with a CAGR of around 19%, amounting to Rs 141,000 crore as on September 30, 2024. Moreover, the budgetary allocation for the government capex has been enhanced to Rs 11.2 lakh crore for FY2026, which, along with planned capacity additions in the cement, steel, oil and gas sectors, is likely to keep the order book position elevated.

It further said power sector, which remains a key end-user industry for the capital goods segment is slated to witness significant capital expenditure estimated at about Rs 25 lakh crore over the next five-year period for capacity addition in renewable & thermal generation, as well as for strengthening of transmission & distribution network, along with storage capacity. Further, capacity expansion plans in the cement sector remain robust with the sector slated to add more than 40 MTPA capacity in FY2026, while data centre capacity is expected to be doubled by FY2027. These, along with refinery capacity expansion and growth in real estate and infrastructure are likely to provide a fillip to the capital goods industry. 

The CNX Nifty ended at 22082.65, down by 36.65 points or 0.17% after trading in a range of 21964.60 and 22105.05. There were 23 stocks advancing against 27 stocks declining on the index. (Provisional)

The top gainers on Nifty were BPCL up by 3.10%, SBI up by 2.98%, Bharat Electronics up by 2.84%, Shriram Finance up by 1.87% and Adani Enterprises up by 1.31%. On the flip side, Bajaj Auto down by 4.95%, Hero MotoCorp down by 3.19%, Bajaj Finserv down by 2.62%, HCL Technologies down by 2.35% and Eicher Motors down by 1.86% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 385.69 points or 1.67% to 22,761.33, France’s CAC fell 82 points or 1% to 8,117.71 and UK’s FTSE 100 decreased 26.48 points or 0.3% to 8,844.83.Asian markets settled mostly lower on Tuesday tracking Wall Street's overnight fall after US President Donald Trump confirmed that 25% tariffs on goods from Mexico and Canada, and he planned 20% tariffs on Chinese imports over fentanyl issues. Donald Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on US products, stoking fears of a global trade war. Japanese shares fell sharply after data showed that the unemployment rate in Japan edged up to 2.5% in January from 2.4% in December. Although, Chinese shares gained amid expectations that China’s policymakers will announce a huge stimulus package at a key parliamentary meeting on Wednesday.