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Key gauges end lower on Monday
Mar-10-2025

Indian equity benchmarks erased all of their initial gains and ended lower on Monday as uncertainty over tariff negotiations and geopolitical tensions kept investors on edge. Traders also remained cautious ahead of key macroeconomic data, i.e., inflation data and industrial production data, which are due on March 12.

Some of the important factors in today’s trade:

Unabated outflow of foreign funds: Foreign institutional investors (FIIs) offloaded equities worth Rs 2,035.10 crore on a net basis on Friday, according to exchange data. 

Forex reserves declined by $1.78 billion to $638.698 billion: The RBI said India's forex reserves dropped by $1.781 billion to $638.698 billion in the week ended February 28. The overall forex kitty had jumped by $4.758 billion to $640.479 billion in the previous reporting week.

US Tariff Policy impacted rupee: Indian rupee depreciated by 40 paise, its steepest fall in over a month, at 87.36 (provisional) against the US dollar, as the American currency started recovering from six-month low level while trade-related uncertainties weighed on investor sentiment.

Treasury yields fell: U.S. Treasury yields were lower as investors await a busy week of key economic data and take in the state of the U.S. economy after comments from U.S. President Donald Trump over the weekend.

Global front: European markets were trading lower amid concerns about the outlook for global economic growth following recent weak economic data from the U.S. and China, and the potential impact of U.S. tariffs. Asian markets settled mostly down due to lingering tariff worries, the threat of a U.S. recession and signs of deepening deflationary pressures in China. 

Finally, the BSE Sensex fell 217.41 points or 0.29% to 74,115.17, and the CNX Nifty was down by 92.20 points or 0.41% to 22,460.30. 

The BSE Sensex touched high and low of 74,741.25 and 74,022.24 respectively. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 1.46%, while Small cap index was down by 2.11%.

The few gaining sectoral indices on the BSE were Utilities up by 0.51% and FMCG up by 0.11%, while Industrials down by 2.36%, Oil & Gas down by 2.18%, Capital Goods down by 2.06%, Consumer Durables down by 2.04% and Realty down by 1.94% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 3.12%, Hindustan Unilever up by 1.99%, Infosys up by 1.01%, Nestle up by 0.66% and Asian Paints up by 0.45%. On the flip side, Indusind Bank down by 3.86%, Zomato down by 2.58%, Larsen & Toubro down by 2.10%, Titan Company down by 1.83% and Mahindra & Mahindra down by 0.97% were the top losers.

Meanwhile, with an aim to promote economic growth and ensure smooth supply chains, Finance Minister Nirmala Sitharaman has said India is looking for a ‘good’ trade agreement with the US. She also said that amid a growing global tariff war, India will have to move ‘smartly’ to guard against possible dumping of goods from countries that are facing higher US tariffs. At the same time, India will protect the interests of domestic industries that rely on affordable imports.

She said ‘In a broad sense, I think, both sides should have ambition for a good treaty, and nobody can fault that. Particularly for India, when you are looking at Viksit Bharat, you need to have good traction. Everybody is concerned about the growth numbers’. She added that a lot more steps are required to strengthen the country's exports across the board, wherever there is potential.

She said ‘So, I am sure the commerce minister (Piyush Goyal) is quite seized of this, and he would take this (trade) agreement to meet the ambitions that we have in terms of promoting growth, in terms of ensuring that our supply chains are intact and smooth and flowing well, and therefore, that would guide his negotiations, I would think’. India and the US are negotiating a bilateral trade agreement, with an aim to double trade to $500 billion by 2030.

The CNX Nifty traded in a range of 22,676.75 and 22,429.05. There were 9 stocks advancing against 41 stocks declining on the index.  

The top gainers on Nifty were Power Grid Corporation up by 3.02%, Hindustan Unilever up by 1.90%, Infosys up by 0.83%, Nestle up by 0.38% and ITC up by 0.22%. On the flip side, ONGC down by 4.12%, Trent down by 4.11%, Indusind Bank down by 3.71%, Bajaj Auto down by 2.61% and Eicher Motors down by 2.51% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 39.88 points or 0.46% to 8,640.00, France’s CAC fell 39.89 points or 0.49% to 8,080.91 and Germany’s DAX lost 193.63 points or 0.85% to 22,815.31.

Asian markets settled mostly down on Monday due to lingering Trump administration’s tariff worries, the threat of a US recession and signs of deepening deflationary pressures in China. Chinese shares declined after an announcement of tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October on Chinese-made electric vehicles and steel and aluminium products. However, Japan’s Nikkei average gained, tracking Wall Street’s gains last Friday with prospects that the US Federal Reserve will cut interest rates earlier after a report showed employment in the United States increased by slightly less than expected in the month of February. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,366.16

-6.39

-0.19

Hang Seng

23,783.49

-447.81

-1.88

Jakarta Composite

6,598.21

-37.79

-0.57

KLSE Composite

1,536.46

-10.81

-0.70

Nikkei 225

37,028.27

141.10

0.38

Straits Times

3,899.07

-15.41

-0.40

KOSPI Composite

2,570.39

6.91

0.27

Taiwan Weighted

22,459.15

-116.92-0.52
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