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Key gauges end lower amid trade war fears
Feb-03-2025

Indian equity benchmarks faced selling pressure throughout the day and ended with losses of around half percent each on Monday, tracking weak cues from Asian markets, as concerns over a broader trade war intensified following tariffs on Canada, Mexico, and China by US President Donald Trump.

Some of the important factors for the markets:

Sustained foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 1,327.09 crore in the capital markets on a net basis on Saturday, according to exchange data. 

Rupee at record low dented investor sentiment: Indian rupee plunged 54 paise to hit record low of 87.16 (provisional) against the US dollar, as global market sentiments were impacted after the Trump administration slapped tariffs on Canada, Mexico and China.

Oil prices rose as Trump's new tariffs heighten supply concerns: Oil prices rose on Monday with US President Donald Trump's decision to impose broad tariffs by the US, the world's largest oil consumer, and uncertainty surrounding the global oil market ahead of the OPEC+ meeting.

Traders overlooked India’s manufacturing PMI data: India's manufacturing sector growth started the year 2025 on a strong footing and touched a six-month high in January, fuelled by the steepest upturn in exports in nearly 14 years.

Weak global cues: European markets were trading lower as final survey results from S&P Global showed euro area manufacturing sector shrank at a slower pace in January as contractions in output, orders, inventories and purchasing activity slowed. Asian markets settled down on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, and promised to make similar moves against the European Union. 

Finally, the BSE Sensex fell 319.22 points or 0.41% to 77,186.74, and the CNX Nifty was down by 121.10 points or 0.52% to 23,361.05.      

The BSE Sensex touched high and low of 77,260.37 and 76,756.09 respectively. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.89%, while Small cap index was down by 1.77%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.74%, TECK up by 0.57%, IT up by 0.39% and Healthcare up by 0.12%, while Capital Goods down by 4.29%, Industrials down by 3.79%, Power down by 3.30%, PSU down by 2.80% and Utilities down by 2.71% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 5.28%, Mahindra & Mahindra up by 2.96%, Bajaj Finserv up by 2.30%, Bharti Airtel up by 1.76% and Maruti Suzuki up by 1.50%. On the flip side, Larsen & Toubro down by 4.64%, Tata Motors down by 2.64%, Hindustan Unilever down by 2.62%, Asian Paints down by 2.33% and Power Grid Corporation down by 2.09% were the top losers.

Meanwhile, the government data has showed that gross GST revenue rose 12.3 per cent year-on-year to Rs 1.96 lakh crore in January 2025 on higher domestic economic activity. This includes 10.4 per cent growth in revenue from sale of goods and services domestically at Rs 1.47 lakh crore and 19.8 per cent rise in tax revenue from imported goods at Rs 48,382 crore.

Refunds of Rs 23,853 crore were issued during the month, a rise of 24 per cent. Total net GST revenue, after adjusting refunds, stood at Rs 1.72 lakh crore, higher by 10.9 per cent.

In the preceding month of December, GST collections rose 7.3 per cent to Rs 1.77 lakh crore compared to the previous year. This growth slowed from an 8.5 per cent increase in November which is attributed to the slower growth in economic activity after the surge in the festive season.

The CNX Nifty traded in a range of 23,381.60 and 23,222.00. There were 16 stocks advancing against 35 stocks declining on the index. 

The top gainers on Nifty were Bajaj Finance up by 5.12%, Shriram Finance up by 3.06%, Mahindra & Mahindra up by 3.00%, Wipro up by 2.72% and Bajaj Finserv up by 2.32%. On the flip side, Larsen & Toubro down by 4.69%, Tata Consumer Products down by 3.07%, Hero MotoCorp down by 2.98%, Coal India down by 2.88% and Bharat Electronics down by 2.84% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 112.72 points or 1.3% to 8,561.24, France’s CAC fell 152.51 points or 1.92% to 7,797.66 and Germany’s DAX lost 446.51 points or 2.05% to 21,285.54.

Asian markets settled down on Monday tracking Wall Street’s fall on Friday last week on fears of a global trade war as US President Donald Trump imposed tariffs of 25% on Canadian and Mexican imports and an additional 10% tax on Chinese goods, and also threatened possible tariffs against the United Kingdom and the European Union. Hong Kong shares ended flat as China’s weak manufacturing data underlined the need for more government support measures to support the Chinese economy, while Chinese market remained closed for the Lunar New Year holiday.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

20,217.26

-7.85

-0.04

Jakarta Composite

7,030.06

-79.14

-1.13

KLSE Composite

1,553.63

-3.29

-0.21

Nikkei 225

38,520.09

-1,052.40

-2.73

Straits Times

3,826.47

-29.35

-0.77

KOSPI Composite

2,453.95

-63.42

-2.58

Taiwan Weighted

22,694.71

-830.70

-3.66
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