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EQUITY
Key gauges extend gains for second straight day
Mar-06-2025

Indian equity benchmarks extended their winning streak to the second straight session and ended higher by around a percent on Thursday, fueled by positive global cues and surge in Energy, Metal and Oil & Gas stocks. After a gap-up opening, markets dipped in red during the early session but witnessed a notable recovery in heavyweight stocks across sectors, pushing the indices higher to close near the day's highs. 

Some of the important factors in today’s trade:

RBI to infuse liquidity through OMO purchase: The Reserve Bank of India (RBI) has come up with more measures including the purchase of government bonds under open market operations (OMO) and foreign currency swaps, with an aim to ease the tight liquidity conditions in the banking system. 

17.1 crore jobs were created in India in decade from 2014 to 2024: Union Labour Minister Mansukh Mandaviya has said that 17.1 crore jobs were created in the country in a decade from 2014 to 2024, and 4.6 crore of these employments were added in the past year alone. 

Crude oil prices tumbled: Crude oil prices extended fall and slipped to 6-month lows in the international markets, as the tariff war intensified with both China and Canada retaliating by imposing tariffs on US goods. 

Rupee fell against US Dollar: Indian rupee snapped its three-day rally and settled with a losses of 56 paise at 87.11 (provisional) against the US dollar amid uncertainty over trade tariffs and persistent foreign fund outflows.  

Global front: European markets were trading mostly in red as investors looked ahead to the European Central Bank's interest-rate decision and President Christine Lagarde's press conference later in the day for direction. Asian markets settled mostly higher after U.S. President Donald exempted automakers from newly imposed tariffs on Mexico and Canada for one month, raising hopes for negotiations. 

Finally, the BSE Sensex rose 609.86 points or 0.83% to 74,340.09, and the CNX Nifty was up by 207.40 points or 0.93% to 22,544.70. 

The BSE Sensex touched high and low of 74,390.80 and 73,415.68 respectively. There were 24 stocks advancing against 5 stocks declining, while 1 stock remained unchanged on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.65%, while Small cap index was up by 1.63%.

The top gaining sectoral indices on the BSE were Energy up by 2.78%, Metal up by 2.64%, Oil & Gas up by 2.36%, Basic Materials up by 1.65% and Utilities up by 1.45%, while Realty down by 0.42% and Telecom down by 0.27% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.70%, NTPC up by 3.41%, Reliance Industries up by 2.96%, Tata Steel up by 2.87% and Bajaj Finserv up by 2.39%. On the flip side, Tech Mahindra down by 2.31%, Kotak Mahindra Bank down by 0.96%, Zomato down by 0.62%, Tata Motors down by 0.19% and Indusind Bank down by 0.07% were the top losers.

Meanwhile, the Engineering Export Promotion Council of India (EEPC India) has said that Indian engineering goods exports to the United States exhibited 18 per cent year-on-year growth in January 2025, reaching $1.62 billion, even as overall engineering shipments grew at a modest 7.44 per cent. This comes on a day US President criticized the high tariffs charged by India and other countries, terming them as 'very unfair' and announced reciprocal tariffs from April 2 on nations that impose levies on American goods.

EEPC has said that during the April-January period of the current financial year, engineering exports to the US has rose nearly 9 per cent to $15.60 billion from $14.38 billion in the corresponding period last year. It added that Indian engineering exports have maintained positive growth for the ninth consecutive month despite geopolitical headwinds and growing trade protectionism by some of India's major export destinations. The total engineering goods exports stood at $9.42 billion in January 2025, compared to $8.77 billion in the same month last year.

EEPC India chairman Pankaj Chadha has acknowledged the resilience of Indian exporters but warned that evolving global trade policies are adding unprecedented pressure on businesses. Chadha cautioned that the latest US tariffs highlight the challenges exporters are likely to face in the coming days, adding that continuous government support in export credit and technology would be critical to maintaining competitiveness. He added that Global Trade Outlook 2025 published by the International Chamber of Commerce (ICC) reported more than 3,000 trade restrictions were implemented globally in 2024 alone posing risks to the multilateral trading system.

EEPC, while indicating toward moderation in engineering exports, has said that Indian engineering exports continued their year-on-year growth streak for the ninth straight month in January, but the growth rate moderated to 7.44 per cent from 8.32 per cent in December. It added that the January growth was primarily driven by exports of aircraft, spacecraft and parts, electric machinery and equipment, automobile and auto components, industrial machinery, products of iron and steel, and medical and scientific instruments. Meanwhile, shipments of ships, boats, and floating structures registered a sharp decline, along with iron and steel exports. It also added that the cumulative engineering exports during the April-January period of FY25 stood at $96.75 billion, reflecting a 9.82 per cent growth over $88.10 billion in the same period last year.

The CNX Nifty traded in a range of 22,556.45 and 22,245.85. There were 38 stocks advancing against 12 stocks declining on the index. 

The top gainers on Nifty were Asian Paints up by 4.75%, Coal India up by 3.77%, BPCL up by 3.56%, Hindalco up by 3.51% and Reliance Industries up by 3.05%. On the flip side, Tech Mahindra down by 2.35%, Trent down by 1.12%, Bharat Electronics down by 0.88%, Britannia Industries down by 0.68% and Kotak Mahindra Bank down by 0.67% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 81.56 points or 0.94% to 8,674.28 and France’s CAC fell 30.3 points or 0.37% to 8,143.45, while Germany’s DAX gained 87.51 points or 0.38% to 23,168.54.

Asian markets settled mostly higher on Thursday tracking Wall Street’s gains overnight after reports emerged that US President Donald Trump was considering a one-month delay of auto tariffs on Canada and Mexico. Chinese and Hong Kong shares gained, led by technology shares and ahead of the release of Chinese trade data on Friday. Meanwhile, Chinese government reports to the annual legislative session showed a greater resolve by China to boost consumer spending and other domestic demand. Seoul shares rose after data showed South Korea's consumer inflation softened in February for the first time in four months. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,381.10

39.14

1.16

Hang Seng

24,369.71

775.50

3.18

Jakarta Composite

6,617.85

86.45

1.31

KLSE Composite

1,558.91

-5.51

-0.35

Nikkei 225

37,704.93

286.69

0.76

Straits Times

3,917.06

18.66

0.48

KOSPI Composite

2,576.16

18.03

0.70

Taiwan Weighted

22,715.43

-156.47

-0.69
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