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Sensex, Nifty trade flat in early deals ahead of Services PMI data
Feb-05-2025

Indian equity benchmarks started the session in green terrain tracking overnight gains on Wall Street. Soon markets turned volatile amid weakness in Asian counterparts. Sensex and Nifty are trading flat in early deals on Wednesday amid foreign fund inflows. After remaining net sellers for the 23 sessions, the Foreign institutional investors (FIIs) turned net buyers on February 4, as they bought equities worth Rs 809 crore. Some support came as a recent report by the State Bank of India (SBI) noted that the country's retail inflation is expected to decline to 4.5% in the last quarter (January-March) of the financial year 2024-25 (FY25), while the overall average inflation for the year is likely to be at 4.8%. Investors remained on sidelines ahead of Services PMI data to be out later in the day. Also, market participants avoided taking risk as RBI Governor Sanjay Malhotra’s MPC meeting beginning later today.

On the global front, Asian markets are trading mostly in red as traders are cautious and are concerns about a global trade war after President Donald Trump decided to impose tariffs on imports from China, Mexico and Canada, with the trading partners retaliating with counter tariffs. Meanwhile, the services sector in Japan continued to expand in January, and at a faster pace, the latest survey from Jibun Bank revealed with a services PMI score of 53.0.

Back home, auto stocks are in focus as s private report said India’s passenger vehicle (PV) industry is expected to witness low single-digit growth in FY25, with forecasts indicating a modest 1.5 per cent year-on-year (y-o-y) growth due to subdued demand. In stock specific developments, Tata Power rallied as it reported a rise in Q3 net profit. Titan Company traded under pressure after the jewelry maker reported a marginal decrease in quarterly net profit.

The BSE Sensex is currently trading at 78515.69, down by 68.12 points or 0.09% after trading in a range of 78514.16 and 78735.41. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.94%, while Small cap index was up by 1.32%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.00%, Metal up by 1.64%, Energy up by 1.53%, PSU up by 1.46% and Utilities up by 1.45%, while FMCG down by 0.77%, Consumer Durables down by 0.57%, Auto down by 0.41%, Realty down by 0.13% and Consumer Discretionary down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.49%, Tata Motors up by 1.62%, Zomato up by 1.56%, Tata Steel up by 1.24% and Power Grid up by 1.05%. On the flip side, Asian Paints down by 4.29%, Nestle down by 2.96%, Titan Company down by 2.52%, Mahindra & Mahindra down by 1.30% and Bajaj Finserv down by 1.08% were the top losers.

Meanwhile, S&P Global Ratings has said that the budget for 2025-26 will boost India's growth over the next few years via domestic demand through income tax cuts and the country will achieve the targeted 4.4 per cent fiscal deficit despite hiking I-T rebate. It said India's union budget is in line with its expectation of gradual fiscal consolidation and that undergirds the positive outlook on India's sovereign ratings BBB-. The deficit targets are also consistent with S&P's projections.

It stated ‘We believe India will hit its deficit targets despite revenue loss from lifting the threshold for minimum taxable income and slower economic growth. Support will stem from continued large dividends from the central bank and potential capital underspending.’ It said the fiscal 2026 budget will boost growth over the next few years via domestic demand through tax cuts for households.

It said ‘We anticipate consumer spending and public investments will maintain real GDP growth at 6.7 per cent in fiscal 2025 and 6.8 per cent in fiscal 2026. These growth rates continue to place India above sovereign peers at similar income levels and should continue to support fiscal revenue increase despite the income tax cuts.’

The CNX Nifty is currently trading at 23759.50, up by 20.25 points or 0.09% after trading in a range of 23750.00 and 23807.30. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.20%, Hindalco up by 2.40%, Indusind Bank up by 2.40%, ONGC up by 2.30% and Coal India up by 1.78%. On the flip side, Asian Paints down by 4.30%, Nestle down by 2.89%, Titan Company down by 2.72%, Tata Consumer products down by 2.06% and Eicher Motors down by 1.69% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 142.93 points or 0.69% to 20,647.03, Nikkei 225 slipped 53.88 points or 0.14% to 38,744.49, Jakarta Composite plunged 36.14 points or 0.51% to 7,037.32, Shanghai Composite weakened 11.75 points or 0.36% to 3,238.85 and Straits Times fell 5.49 points or 0.14% to 3,817.52. On the other hand, Taiwan Weighted jumped 398.51 points or 1.75% to 23,192.47 and KOSPI was up by 29.62 points or 1.19% to 2,511.31.
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