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Volatility witnesses over Dalal Street; telecom stocks ring loudly
Feb-07-2025

Volatility witnessed over the Dalal Street in early afternoon deals, with both Sensex and Nifty now trading lower, amid mixed cues from other Asian markets along with selling at FMCG and Oil & Gas counters. ITC fell the most among major industry players on the BSE, followed by SBI and TCS. Some concerns came after the Reserve Bank of India has lowered its GDP growth projections for the first and second quarters of the fiscal 2025-2026 amid the concerns over the protectionist trade policies by US president Donald Trump.

On the global front, Asian markets were trading mixed, even as Japan's leading index increased more-than-expected at the end of the year. The preliminary data from the Cabinet Office showed that the leading index, which measures future economic activity, rose to 108.9 in December from a 3-month low of 107.8 in November. The score was forecast to increase to 108.2. Likewise, the coincident index that measures the current economic situation came in at 116.8, up from 115.4 in the previous month.

Back home, Public Sector Banks stocks were in watch as Ministry of Finance in its latest data report has showed that public sector banks (PSBs) recorded net profit growth of 31.3% year on year (y-o-y) to achieve highest ever aggregate net profit of Rs 1,29,426 crore and aggregate operating profit of Rs 2,20,243 crore, in first nine months of the financial year 2024-25 (April-December).

The BSE Sensex is currently trading at 77977.53, down by 80.63 points or 0.10% after trading in a range of 77730.37 and 78356.98. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.05%, while Small cap index was down by 0.46%.

The top gaining sectoral indices on the BSE were Telecom up by 3.04%, Metal up by 2.15%, Consumer Durables up by 1.15%, Basic Materials up by 0.81% and TECK up by 0.63%, while FMCG down by 1.20%, Oil & Gas down by 0.98%, Capital Goods down by 0.79%, PSU down by 0.69% and Industrials down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.66%, Tata Steel up by 3.24%, Ultratech Cement up by 1.96%, Bajaj Finserv up by 1.02% and Mahindra & Mahindra up by 0.97%. On the flip side, ITC down by 2.11%, SBI down by 1.56%, TCS down by 1.05%, ICICI Bank down by 1.00% and Nestle down by 0.96% were the top losers.

Meanwhile, All India Gem and Jewellery Domestic Council (GJC) chairman Rajesh Rokde has said that the gems and jewellery industry has urged the government to rationalise the Goods and Services Tax (GST) on bullion and ornaments by slashing it to 1.25 per cent from the current 3 per cent to boost sales. He said the jewellery industry has been burdened with high taxation rates, negatively impacting businesses and encouraging unregulated trade.  

Further explaining, he said a core principle of GST determination was revenue neutrality, ensuring that taxation levels remain equivalent to pre-GST rates and based on the past indirect tax structure, the revenue-neutral rate for the gems and jewellery industry should be 1.25 per cent, not the current 3 per cent. 

He added that lowering the GST would encourage domestic manufacturers, boost job creation, and position India as a global hub for jewellery making. 

The CNX Nifty is currently trading at 23593.55, down by 9.80 points or 0.04% after trading in a range of 23493.60 and 23694.50. There were 23 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.63%, Tata Steel up by 3.45%, JSW Steel up by 2.71%, Trent up by 2.51% and Ultratech Cement up by 1.91%. On the flip side, ONGC down by 2.46%, ITC down by 2.09%, SBI down by 1.59%, Bharat Electronics down by 1.39% and Apollo Hospital down by 1.27% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 165.09 points or 0.79% to 21,056.71, Shanghai Composite strengthened 21.96 points or 0.67% to 3,292.62, Straits Times rose 30.64 points or 0.8% to 3,861.06 and Taiwan Weighted added 161.67 points or 0.69% to 23,478.27, while Jakarta Composite plunged 151.12 points or 2.2% to 6,724.42, KOSPI dropped 14.83 points or 0.59% to 2,521.92 and Nikkei 225 slipped 279.51 points or 0.72% to 38,787.02.
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