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Key gauges stage strong rebound on Wednesday
Mar-05-2025

Indian equity benchmarks staged a strong rebound on Wednesday and ended with gains of over a percent on a flurry of buying by investors amid a strong rally in Asian markets. 

Some of the important factors in today’s trade: 

Improvement in February PMI figures: India's services sector activity witnessed a sharp uptick in February boosted by improving domestic and international demand, which resulted in a quicker expansion in output and a substantial increase in employment. The seasonally adjusted HSBC India Services PMI Business Activity Index rose from January's 26-month low of 56.5 to 59.0 in February.

Govt steadfast in easing regulatory burdens, taking steps to make India export-friendly: Finance Minister Nirmala Sitharaman has said that the government remains steadfast in reducing regulatory burdens, besides enhancing trust-based governance and taking steps to make India a seamless, export-friendly economy. 

Easing crude oil prices: Oil prices continued their downward trend for the third straight session as concerns over global growth and OPEC+'s decision to increase production in April weighed on sentiment. 

Power stocks remain in watch: Chairman of Central Electricity Authority (CEA) Ghanshyam Prasad said India is ready to meet the expected peak power demand of 270 GW this summer taking steps like mandating 17GW imported coal plants to run at full capacity till April and asking hydro projects to conserve water to meet sudden surge. 

Positive global market trends: European markets were trading in green as German leaders agreed to loosen the country's so-called debt brake. Asian markets ended higher on Wednesday after reports emerged that U.S. President Donald Trump will 'probably' announce a deal to reduce tariffs on Canada and Mexico. 

Finally, the BSE Sensex rose 740.30 points or 1.01% to 73,730.23, and the CNX Nifty was up by 254.65 points or 1.15% to 22,337.30.

The BSE Sensex touched high and low of 73,933.80 and 72,894.05 respectively. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 2.66%, while Small cap index was up by 2.80%.

The top gaining sectoral indices on the BSE were Utilities up by 4.40%, Power up by 3.67%, Metal up by 3.52%, Telecom up by 3.36% and PSU up by 3.11%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Adani Ports & SEZ up by 5.02%, Tata Steel up by 4.92%, Mahindra & Mahindra up by 4.27%, Power Grid Corporation up by 4.27% and NTPC up by 4.06%. On the flip side, Bajaj Finance down by 3.25%, Indusind Bank down by 1.64%, HDFC Bank down by 1.25%, Zomato down by 0.31% and Maruti Suzuki down by 0.02% were the top losers.

Meanwhile, US-India Business Council (USIBC) has said that Non-tariff barriers and ‘red tape’ that slow market access should be dismantled with haste to boost India-US trade ties, as the two sides are holding initial negotiations for a trade deal. Commerce Minister Piyush Goyal is in Washington to hold the talks with his American counterpart Howard Lutnick and US Trade Representative Jamieson Greer. India and the US agreed to begin negotiations for a trade deal following talks between Prime Minister Narendra Modi and US President Donald Trump in Washington DC.

USIBC President Ambassador Atul Keshap has urged both sides to leverage the trade relationship for shared growth. He said that the meaningful trade facilitation through a sweeping bilateral trade deal is long overdue, and would be instrumental in boosting the GDPs of both America and India and bind two mighty economies closer together. It is expected that a major focus of the trade negotiations will be on tariff as stoked global concerns. 

While talking about India-US business relationship and trade, he said that the US and Indian businesses have invested in each other's countries for years even without a formal investment or trade framework. He added that India represents only 2.5 percent of America's trade volumes, and that number can and should increase substantially. Keshap has emphasized that both sides should be working with focus to formalize a level playing field, full and open market access, swift dispute arbitration, and predictable tax and regulatory policies to boost investment, growth, and job creation in both countries.

The CNX Nifty traded in a range of 22,394.90 and 22,067.80. There were 46 stocks advancing against 4 stocks declining on the index. 

The top gainers on Nifty were Adani Ports & SEZ up by 5.15%, Tata Steel up by 4.55%, Adani Enterprises up by 4.53%, Power Grid Corporation up by 4.25% and Mahindra & Mahindra up by 4.13%. On the flip side, Bajaj Finance down by 3.37%, Indusind Bank down by 1.48%, HDFC Bank down by 1.05% and Shriram Finance down by 0.14% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 72.96 points or 0.83% to 8,831.96, France’s CAC rose 195.28 points or 2.43% to 8,243.20 and Germany’s DAX gained 833.63 points or 3.73% to 23,160.44.

Asian markets ended higher on Wednesday, even as Wall Street’s shares tumbled overnight on concerns that US President Donald Trump's tariffs on Canada, Mexico and China will lead to a wider trade war and hurt the global economy. Investors are awaiting the release of US ISM Services PMI and ADP Employment Change data for February. Chinese and Hong Kong shares gained after the Chinese government unveiled an annual economic growth target of around 5% and pledged more support for domestic consumption and the tech industry as a trade war with the United States heats up. The Chinese yuan weakened slightly as China boosted its budget deficit to the highest in 30 years. Japanese markets rose slightly after Bank of Japan Deputy Governor Shinichi Uchida signaled further rate hikes, citing inflation and wage growth.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,341.96

17.75

0.53

Hang Seng

23,594.21

652.44

2.77

Jakarta Composite

6,531.40

151.00

2.31

KLSE Composite

1,564.42

8.76

0.56

Nikkei 225

37,418.24

87.06

0.23

Straits Times

3,898.40

7.64

0.20

KOSPI Composite

2,558.13

29.21

1.14

Taiwan Weighted

22,871.90

275.02

1.20
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