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EQUITY
Key gauges end with minor cuts
Mar-12-2025

Indian equity benchmarks erased most of their losses but ended marginally lower on Wednesday due to heavy selling pressure in IT, TECK and Telecom stocks amid growing concerns over a possible global economic slowdown. Also, market participants stayed cautious, awaiting cues from macroeconomic data to be released in India and the US later in the day. 

Some of the important factors in today’s trade: 

US tariffs on steel, aluminum imports took effect: Tariff uncertainties kept investors on edge as Trump's increased tariffs on all U.S. steel and aluminum imports took effect and the European Union said it will impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month. 

Crude oil prices climbed: Crude oil prices inched higher after starting the week with sharp losses, amid reports of rebounding Asian imports and a weaker dollar that should stimulate stronger demand.

Growth in net sales of FDI companies moderated to 9.3% in FY24: RBI has said that with the normalisation of post-pandemic pent-up demand conditions, the growth in net sales of select FDI companies moderated to 9.3 per cent during 2023-24 from the high of 20.3 per cent in the previous year.

India's GDP to exceed 6.5% in FY26: Moody's Ratings stated that India's economic growth will exceed 6.5 per cent in the next fiscal, up from 6.3 per cent this year, on higher government capex and consumption boost from tax cuts and interest rate reduction.

Global front: European markets were trading higher after Ukraine signaled its readiness to accept a U.S. proposal for an ‘immediate, interim 30-day ceasefire’ with Russia, and the European Union announced retaliatory tariffs on U.S. imports of steel and aluminum. Asian markets settled mostly higher as regional investors brushed off concerns over US trade policy shifts under President Donald Trump. 

Finally, the BSE Sensex fell 72.56 points or 0.10% to 74,029.76, and the CNX Nifty was down by 27.40 points or 0.12% to 22,470.50.  

The BSE Sensex touched high and low of 74,392.15 and 73,598.16 respectively. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.57%, while Small cap index was down by 0.48%.

The top gaining sectoral indices on the BSE were Auto up by 0.47%, Utilities up by 0.41%, Bankex up by 0.36%, Energy up by 0.33% and Power up by 0.22%, while IT down by 3.02%, TECK down by 2.69%, Telecom down by 2.16%, Realty down by 1.74% and Metal down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.38%, Tata Motors up by 3.18%, Kotak Mahindra Bank up by 2.45%, Bajaj Finance up by 1.77% and HDFC Bank up by 1.60%. On the flip side, Infosys down by 4.28%, Tech Mahindra down by 2.80%, Nestle down by 2.43%, TCS down by 1.99% and HCL Technologies down by 1.91% were the top losers.

Meanwhile, to promote and develop mutual collaboration in public-private partnership framework and investment, use of financing tools, as well as economic policies, the finance ministry has said that India and Qatar have signed an agreement. The Memorandum of Understanding (MoU) on financial and economic cooperation was signed between the two countries.

The ministry said ‘The MoU aims to promote and develop mutual collaboration in the areas of economic policies, use of financing tools, public-private partnership framework and investment. The MoU is expected to explore new and emerging sectors and avenues for investments in both countries’. 

The ministries of finance of both countries shall promote models and areas of joint collaboration between them, such as organising expert workshops, seminars and conferences; exchanging documentary and technical information in areas of joint work and keeping pace with the dialogue between the business communities of the two countries. The MoU signifies the commitment of both sides to work together and unlock new opportunities for investment, growth and development.

The CNX Nifty traded in a range of 22,577.40 and 22,329.55. There were 19 stocks advancing against 31 stocks declining on the index.  

The top gainers on Nifty were Indusind Bank up by 4.38%, Tata Motors up by 3.12%, Kotak Mahindra Bank up by 2.45%, Bajaj Finance up by 1.73% and ITC up by 1.53%. On the flip side, Infosys down by 4.26%, Wipro down by 3.31%, Tech Mahindra down by 2.77%, Nestle down by 2.48% and TCS down by 1.93% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 52.33 points or 0.62% to 8,548.32, France’s CAC rose 97.86 points or 1.23% to 8,039.77 and Germany’s DAX gained 374.96 points or 1.68% to 22,703.73.

Asian markets settled mostly higher on Wednesday ahead of the release of key US consumer inflation reading later in the day. Market sentiments were aided by a US decision to resume intelligence sharing and military aid to Ukraine after Kyiv said it would support the Trump administration’s proposal for a 30-day ceasefire with Russia. Although, tariff uncertainties remained a focus point for investors after US President Donald Trump's increased tariffs of 25% on all US steel and aluminum imports took effect today and the European Union said it will impose counter tariffs on 26 billion euros worth of US goods from next month. Trump reversed course on a pledge to double tariffs on steel and aluminum from Canada to 50%, minutes after the Canadian province of Ontario backed off its plans for a 25% surcharge on electricity. Japanese shares ended almost flat after Bank of Japan Governor Kazuo Ueda said recent rises in bond yields were a natural reflection of market expectations of future interest rate hikes. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,371.92

-7.91

-0.23

Hang Seng

23,600.31

-181.83

-0.77

Jakarta Composite

6,665.04

119.19

1.82

KLSE Composite

1,484.83

-35.32

-2.32

Nikkei 225

36,819.09

25.98

0.07

Straits Times

3,833.07

7.24

0.19

KOSPI Composite

2,574.82

37.22

1.45

Taiwan Weighted

22,278.36

207.270.93
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