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Markets off day’s low in late afternoon session
Mar-12-2025

Indian equity markets witnessed decent recovery from day’s low but continue to trade in red terrain in late afternoon session. The market participants remained cautious as the fears of looming global trade war kept investors on edge after European Commission stated that the European Union will impose counter tariffs on 26 billion euros ($28.33 billion) worth of US goods from next month in response to US tariffs on steel and aluminium. Traders also shied away from risky trades amid weak global economy outlook and uncertainty surrounding Trump’s tariffs. However, losses remained capped after reports indicating Indian government finalising export schemes to shield exporters from US tariffs. Further, investors are keenly eyeing India’s consumer price index (CPI) inflation for the month of February and Industrial Production data for January to be released later in the day, for more directional cues. 

On the global front, Asian equity markets were mostly trading green after U.S. President played down fears of a recession. The European equity markets were trading higher after Ukraine accepted U.S. proposal for a ceasefire with Russia. Back home, the IT stocks witnessed selling pressure primarily on the back of slowdown concerns in the US.

The BSE Sensex is currently trading at 74019.88, down by 82.44 points or 0.11% after trading in a range of 73598.16 and 74392.15. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.81%, while Small cap index was down by 0.33%.

The top gaining sectoral indices on the BSE were Auto up by 0.53%, Bankex up by 0.48%, Utilities up by 0.30%, Energy up by 0.26% and FMCG up by 0.19%, while IT down by 3.22%, TECK down by 2.87%, Telecom down by 2.08%, Realty down by 1.50% and Metal down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 5.50%, Tata Motors up by 3.13%, Kotak Mahindra Bank up by 2.46%, HDFC Bank up by 1.73% and Bajaj Finance up by 1.51%. On the flip side, Infosys down by 4.56%, Tech Mahindra down by 3.13%, Nestle down by 2.19%, HCL Technologies down by 2.11% and TCS down by 1.89% were the top losers.

Meanwhile, the Finance Industry Development Council (FIDC) has said they have sought a scheme to incentivise electric vehicle finance in the country on the lines of Faster Adoption & Manufacturing of Electric Vehicles (FAME) or production-linked incentive (PLI) schemes. In a recent meeting with the central government's think tank Niti Aayog, the FIDC said while a shift to electric vehicles is pivotal to achieving decarbonisation goals, EV financing is a bottleneck.

FIDC said just as the government supported and incentivised manufacturing of EVs through FAME and PLI schemes, a similar initiative for the financiers is the need of the hour. It said EV financing is treated similarly to internal combustion engine vehicle financing and there is no incentive for financiers, and added that the challenges also include a lack of standardised battery life assessment and resale mechanisms. Apart from that, financiers grapple with depreciation fears due to evolving battery technology and unclear warranties. 

On the battery front, it said there are rapid technological advancements, which increase asset risks for financiers, while the data on battery degradation in Indian conditions is also limited. It proposed that a dedicated fund with SIDBI or NABARD can be set up exclusively for funding NBFCs for on-lending to EVs and also pitched for subsidised interest rates through an extension of the interest subvention schemes for EV loans under Rs 10 lakh.  

The CNX Nifty is currently trading at 22467.20, down by 30.70 points or 0.14% after trading in a range of 22329.55 and 22577.40. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 5.72%, Tata Motors up by 3.10%, Kotak Mahindra Bank up by 2.43%, HDFC Bank up by 1.61% and Bajaj Finance up by 1.59%. On the flip side, Infosys down by 4.53%, Wipro down by 3.51%, Tech Mahindra down by 3.07%, Nestle down by 2.20% and HCL Technologies down by 2.07% were the top losers.

Asian markets are trading mostly in green; KOSPI increased 37.22 points or 1.45% to 2,574.82, Jakarta Composite gained 106.29 points or 1.6% to 6,652.14, Nikkei 225 surged 25.98 points or 0.07% to 36,819.09, Taiwan Weighted added 207.27 points or 0.93% to 22,278.36 and Straits Times rose 9.73 points or 0.25% to 3,835.56, while Hang Seng declined 181.83 points or 0.77% to 23,600.31 and Shanghai Composite weakened 7.91 points or 0.23% to 3,371.92.

European markets were trading higher; UK’s FTSE 100 increased 29.73 points or 0.35% to 8,525.72, France’s CAC rose 73.72 points or 0.93% to 8,015.63 and Germany’s DAX gained 266.89 points or 1.2% to 22,595.66.
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