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Sensex, Nifty magnify opening losses amid sell-off in all sector indices
Feb-17-2025

Indian equity benchmarks made a negative start on Monday as some cautiousness crept in amid developments in the international geopolitical arena where the new US administration is working to resolve the Russia-Ukraine conflict and issues in the Middle-East. Sensex and Nifty are trading lower with cut of over half a percent each in early deals amid sell-off in all the sector indices led by Auto, Realty and IT. Sustained foreign fund outflows dented domestic sentiments. The exodus of FPIs from the Indian equity markets continues as they pulled out Rs 21,272 crore in the first two weeks of this month, driven by global tensions after the US imposed tariffs on imports. This came following a net outflow of Rs 78,027 crore in January.

On the global front, all Asian markets are trading higher amid easing concerns over a global trade war after U.S. President Donald Trump decided to delay the implementation of new reciprocal tariff plans. Besides, Japan's gross domestic product expanded a seasonally adjusted 0.7 percent on quarter in the fourth quarter of 2024.

Back home, stocks of textile industry are in focus as Cotton Association of India (CAI) said the overall cotton output in the current season (2024-25), beginning October, is estimated to dip to 301.75 lakh bales from 327.45 lakh bales in last season, due to lower yield in Gujarat and the northern region. In stock specific development, Dilip Buildcon traded higher after the company posted a 7.4% year-on-year (Y-o-Y) rise in net profit for Q3 FY25, reaching Rs 115.3 crore. 

The BSE Sensex is currently trading at 75480.14, down by 459.07 points or 0.60% after trading in a range of 75294.76 and 75730.01. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.64%, while Small cap index was down by 0.69%.

The top losing sectoral indices on the BSE were Auto down by 1.25%, Realty down by 1.16%, IT down by 1.08%, TECK down by 1.06% and Capital Goods down by 0.96%, while there was no gainer on the BSE sectoral front.

The top gainers on the Sensex were Bajaj Finserv up by 1.07%, Indusind Bank up by 0.66%, Tata Motors up by 0.48%, Zomato up by 0.37% and Asian Paints up by 0.30%. On the flip side, Mahindra & Mahindra down by 3.75%, Infosys down by 1.51%, Tata Steel down by 1.45%, Tech Mahindra down by 1.43% and TCS down by 1.09% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the announcement to negotiate a bilateral trade agreement between India and the US has boosted business confidence in both countries, as it can help further strengthen economic ties by leveraging their competitive strengths. During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced to more than double the two-way commerce to $500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025.

Goyal said ‘The Prime Minister has brought back with him an agreement or an understanding to enter into a trade deal by fall of this year. I think, it gives a lot of confidence and a lot of relief to every business person in the US and in India who believe that together, we can truly transform world trade, together with our competitive strengths in different areas, we can truly work as two friends, as two partners for progress and prosperity’. Normally in a free trade agreement, two trading partners either eliminate or significantly reduce customs duties on the maximum number of goods traded between them. Besides, they also ease norms to promote trade in services and boost investments.

He also said that India is expanding and forging new partnerships across the world with new trade agreements with the developed world including with Australia, the UAE, and EFTA bloc. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. He said ‘The progress we are making in other engagements with Europe, and the progress we will soon make with the US as we proceed to finalize a trade deal by fall of this year, are all reflective of India's growing relevance at the global stage’. In 2023, the US and India bilateral trade in goods and services stood at $190.08 billion ($123.89 billion goods and $66.19 billion services trade). In that year, India's merchandise exports to the US stood at $83.77 billion, while imports were $40.12 billion, leaving a trade gap of $43.65 billion in favour of India.

The CNX Nifty is currently trading at 22793.35, down by 135.90 points or 0.59% after trading in a range of 22725.45 and 22874.75. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 1.07%, Sun Pharma up by 0.95%, Indusind Bank up by 0.61%, Coal India up by 0.59% and Tata Motors up by 0.57%. On the flip side, Mahindra & Mahindra down by 4.55%, HDFC Life Insurance down by 1.71%, Hero MotoCorp down by 1.63%, Shriram Finance down by 1.47% and Tata Steel down by 1.38% were the top losers.

All Asian markets are trading higher; Taiwan Weighted jumped 348.19 points or 1.5% to 23,500.80, Jakarta Composite rose 119.01 points or 1.79% to 6,757.47, Nikkei 225 surged 58.83 points or 0.15% to 39,208.26, Hang Seng advanced 41.57 points or 0.18% to 22,661.90, KOSPI increased 17.97 points or 0.69% to 2,609.02, Straits Times added 17.93 points or 0.46% to 3,895.43, Shanghai Composite was up by 2.13 points or 0.06% to 3,348.85.
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