Markets wipe out opening losses to trade higher in early deals

Indian equity benchmarks made negative start on Thursday, weighed down by weak global cues. However, soon markets gained traction and are trading higher in early deals amid foreign fund inflows. According to exchange data, Foreign Institutional Investors (FIIs) purchased equities worth Rs 2,240.55 crore on Wednesday. Some support came as the Department of Economic Affairs (DEA), Ministry of Finance said that Indian economy is estimated to achieve a growth of 6.5 per cent in FY25 despite considerable external headwinds. Also, Director General of Foreign Trade Santosh Kumar Sarangi said that India's exports are expected to grow despite global trade uncertainties. Trading activity to remain subdued ahead of Nifty F&O expiry later in the day.

On the global front, Asian markets are trading mixed, following the broadly negative cues from Wall Street overnight, amid ongoing concerns about the heightening trade war and the potential impact on inflation and global growth after U.S. President Donald Trump announced 25 percent tariffs on auto and auto parts starting next week.

Back home, coal stocks are in focus as Ministry of Coal is poised to launch the 12th round of Commercial Coal Mine Auctions on March 27, 2025. This initiative marks another significant step toward enhancing domestic coal production, reducing imports, and ensuring long-term energy security for the nation.

The BSE Sensex is currently trading at 77422.25, up by 133.75 points or 0.17% after trading in a range of 77082.51 and 77560.91. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.02%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were PSU up by 0.74%, Bankex up by 0.58%, Consumer Durables up by 0.44%, Capital Goods up by 0.40% and Energy up by 0.37%, while Auto down by 1.32%, Healthcare down by 0.81%, Consumer Discretionary down by 0.42%, FMCG down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.52%, ICICI Bank up by 0.72%, Axis Bank up by 0.67%, Titan Company up by 0.64% and Power Grid up by 0.57%. On the flip side, Tata Motors down by 5.52%, Sun Pharma down by 1.64%, Mahindra & Mahindra down by 1.20%, Asian Paints down by 1.04% and Indusind Bank down by 0.82% were the top losers.

Meanwhile, the Monthly Economic Review by the Department of Economic Affairs (DEA), Ministry of Finance has said that the Indian economy is estimated to achieve a growth of 6.5 per cent in FY25 despite considerable external headwinds. The Monthly Economic Review added that the performance of the economy in the past quarters was driven by strong agricultural and service sector performance on the supply side and a steady increase in consumption and core merchandise and services exports on the demand side. The DEF said ‘Geopolitical tensions, trade policy uncertainties, volatility in international commodity prices and financial market uncertainties pose considerable risks to the economic growth outlook, globally and locally. One offsetting positive is the outlook for commodity prices. Domestic private sector capital formation, focused on India’s solid fundamentals and economic prospects, will be an important driver of economic growth in FY26’. The review document added that all sectors are estimated to grow close to their trend rates.

The monthly review added retail inflation eased to 3.6 per cent in February 2025 on the back of recent benign price trends of food items. Food inflation saw a sharp decline, driven by winter season correction in vegetable prices, continued easing of pulse prices and various administrative measures of the government. The DEA added that the estimates of agricultural production suggest a positive outlook for food inflation. The review said in the near full-year data available for FY25, there is a close convergence of actual deficits, critical ratios, and essential expenditures with their budget estimates, indicating a sustained commitment to fiscal targets.

However, the Monthly Economic Review recognised that global trade continues to be affected by uncertainty in the policy environment. The Global Trade Policy Uncertainty Index rose to a record high of 237.4 in Q4 2024. Tariff-related developments in multiple countries have heightened trade-related risks, affecting investment and trade flows globally, the DEF added in the monthly review. Consequently, India’s exports have Supportive fiscal measures, accommodative monetary policy, and the Union Budget’s focus on longer-term development drivers and reform will bolster domestic economic resilience amidst significant global uncertainties.

The CNX Nifty is currently trading at 23527.75, up by 40.90 points or 0.17% after trading in a range of 23412.20 and 23565.20. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.41%, Wipro up by 1.31%, HDFC Life Insurance up by 1.24%, Shriram Finance up by 1.22% and Hero MotoCorp up by 1.07%. On the flip side, Tata Motors down by 5.51%, Sun Pharma down by 1.66%, Dr. Reddy's Lab down by 1.43%, Mahindra & Mahindra down by 1.25% and Eicher Motors down by 0.92% were the top losers.

Asian markets are trading mixed; Hang Seng advanced 246.01 points or 1.05% to 23,729.33, Straits Times rose 15.75 points or 0.4% to 3,979.46, Jakarta Composite gained 10.76 points or 0.17% to 6,483.12 and Shanghai Composite was up by 10.49 points or 0.31% to 3,379.19. On the other hand, Nikkei 225 slipped 364.87 points or 0.96% to 37,662.42, Taiwan Weighted lost 331.34 points or 1.49% to 21,928.95 and KOSPI was down by 26.51 points or 1% to 2,617.43.