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EQUITY
Post Session: Quick Review
Feb-04-2025

Indian equity benchmarks ended Tuesday's trading session near day’s high points, ahead of the Indian central bank's rate setting meeting later in the week. There are expectations that the Reserve Bank of India (RBI) is likely to reduce the policy repo rate for the first time in almost five years. Markets made an optimistic start and remained higher till end of the day.

Some of the important factors in today’s trade:

Trump pauses tariffs: Traders reacted positively to US President Donald Trump's latest decision to delay imposing the planned tariffs on Mexico and Canada after successful negotiations with the respective leaders.

Indian economy to grow at 6.5% in FY26: Some support came as Crisil’s report stated that the Indian economy is likely to grow at 6.5% in financial year 2025-26 (FY26), marginally higher than ongoing fiscal year which is estimated to grow at 6.4%.

Budget delivered non-inflationary stimulus to economic: Some support came as Finance Secretary Tuhin Kanta Pandey said the FY26 Budget has given sufficient non-inflationary stimulus to the economy which will promote incremental growth. 

Global front: European markets were trading mostly lower, even as Spain's unemployment increased less than expected in January and also hit the lowest level for the month in 17 years as the economy. Most of the Asian markets ended in green, as China slapped tariffs on U.S. imports in a rapid response to a 10 percent trade duty imposed by the Trump administration on Chinese goods.

The BSE Sensex ended at 78583.81, up by 1397.07 points or 1.81% after trading in a range of 77402.37 and 78658.59. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.35%, while Small cap index up by 1.20%.(Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 3.42%, Industrials up by 2.59%, Energy up by 2.50%, PSU up by 2.43% and Oil & Gas up by 2.40%, while FMCG down by 0.13% were the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Larsen & Toubro up by 4.28%, Indusind Bank up by 3.78%, Adani Ports and Special Economic Zone up by 3.71%, Tata Motors up by 3.26% and Reliance Industries up by 3.04%. On the flip side, Zomato down by 2.06%, Nestle down by 0.81%, Hindustan Unilever down by 0.30%, Maruti Suzuki down by 0.23% and Tech Mahindra down by 0.11% were the top losers. (Provisional)

Meanwhile, India and the UK are all set to resume the talks for the proposed free trade agreement from February 24 amid the bilateral trade between two countries is increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23. The free trade agreement is aimed to boost bilateral trade and investments between both the countries by either eliminating or significantly reducing customs duties on the majorly traded goods between them and further easing norms for promoting trade in services and bilateral investments.

On the Indian side, industries are demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, apart from the nil customs duty on for several goods. On the other hand, the UK is looking for substantial cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary item. It also seeking more opportunities in Indian markets in segments such as telecommunications, legal and financial services. 

The talks for the agreement may get an impetus as Finance Minister Nirmala Sitharaman on February 01, 2025 proposed to raise the foreign investment limit to 100 per cent in the insurance sector as part of new-generation financial sector reforms. Furthermore, there is ongoing negotiation a bilateral investment treaty (BIT), which includes goods, services, investments and intellectual property rights, between two countries.

The CNX Nifty ended at 23739.25, up by 378.20 points or 1.62% after trading in a range of 23423.15 and 23762.75. There were 40 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Shriram Finance up by 5.60%, Larsen & Toubro up by 4.56%, Bharat Electronics up by 3.78%, Adani Ports and Special Economic up by 3.71% and Indusind Bank up by 3.40%. On the flip side, Trent down by 6.27%, Britannia down by 1.51%, Hero MotoCorp down by 1.16%, Nestle down by 0.76% and Eicher Motors down by 0.64% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 21.34 points or 0.25% to 8,562.22, Germany’s DAX lost 7.09 points or 0.03% to 21,421.15, while France’s CAC rose 10.48 points or 0.13% to 7,865.40.

Asian markets settled mostly higher on Tuesday after the US halted its planned tariffs on Canada and Mexico, easing fears of a global trade war. Hong Kong shares surged as investors focus on artificial intelligence and electric vehicle shares, while shrugging off news of tit-for-tat Sino-US tariffs on each other's goods. China has placed counter tariffs on US imports that will come into effect on February 10 after President Donald Trump placed 10% levies on Chinese goods. Market in mainland China remained shut for the Lunar New Year holidays.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

--

--

--

Hang Seng

20,789.96

572.70

2.75

Jakarta Composite

7,073.46

43.40

0.61

KLSE Composite

1,564.56

10.93

0.70

Nikkei 225

38,798.37

278.28

0.72

Straits Times

3,823.01

-3.46

-0.09

KOSPI Composite

2,481.69

27.74

1.12

Taiwan Weighted

22,793.96

99.25

0.44
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