SSPL WEALTH PVT LTD

End - Session

Detailed review of the post market session of the day.

Benchmarks extend losses for 4th day, Nifty ends below 22,800

21-Feb-25 17:20 Hrs IST

The domestic equity benchmarks closed lower on Friday, marking the fourth consecutive day of losses. Concerns over potential retaliatory tariffs from the US, coupled with continued selling by FIIs, weighed heavily on investor sentiment. The Federal Reserve's cautious approach to interest rate cuts also contributed to the market's decline. '

The Nifty index settled below the 22,800 level. While some sectors showed resilience, others faced significant pressure. Metals, consumer durables, and FMCG stocks saw buying interest. Conversely, the auto, healthcare, and pharma sectors experienced selling pressure.

The S&P BSE Sensex, tumbled 424.90 points or 0.56% to 75,311.06. The Nifty 50 index declined 117.25 points or 0.51% to 22,795.90. In the four consecutive trading sessions, the Sensex and Nifty declined by 0.90% and 0.71%, respectively.

Mahindra & Mahindra (down 6.07%), Adani Ports & SEZ (down 2.57%) and ICICI Bank (down 1.46%) were major drags.

In the broader market, the S&P BSE Mid-Cap index declined 1.18% and the S&P BSE Small-Cap index shed 0.43%.

The market breadth was negative. On the BSE, 1701 shares rose and 2246 shares fell. A total of 113 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.03% to 14. 53.

Economy:

India's private sector activity witnessed its fastest expansion since August 2024, according to the HSBC Flash India Composite Output Index. The index rose to 60.6 in February, up from 57.7 in January, signaling a significant acceleration in combined manufacturing and services output.

However, while overall private sector activity surged, growth in the manufacturing sector moderated slightly. The HSBC Flash India Manufacturing PMI slipped to 57.1 in February from 57.7 in January. Despite the decline, the manufacturing PMI remained above its long-run average of 54.1.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.15% to 6.822 as compared with the previous close of 6.812.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.6950, compared with its close of 86.6400 during the previous trading session.

MCX Gold futures for 4 April 2025 settlement rose 0.23% to Rs 85,824.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.29% to 106.67.

The United States 10-year bond yield shed 0.24% to 4.488.

In the commodities market, Brent crude for April 2025 settlement lost 61 cents or 0.80% to $75.87 a barrel.

Global Markets:

European markets advanced, while most Asian stocks ended higher on Friday as investors awaited earnings reports. Strong earnings from Alibaba fueled a rally in Hong Kong.

Japanese stocks rose after stronger-than-expected January inflation data. Headline national CPI jumped to a two-year high of 4.0% year-on-year in January, up from 3.6% the previous month, according to government data. Core CPI, excluding fresh food and energy costs, rose slightly to 2.5% year-on-year from 2.4% in the prior month. This data strengthens the case for further interest rate hikes by the Bank of Japan.

Japanese manufacturing activity contracted for the eighth consecutive month in February. The Au Jibun Bank manufacturing purchasing managers' index (PMI) was 48.9 in February, slightly better than January's 48.7. A reading below 50 indicates contraction.

U.S. stocks declined overnight after weak earnings from Walmart, raising concerns about a slowing economy. Wall Street also saw some profit-taking after the S&P 500 reached a series of record highs this week.

The S&P 500 fell 0.4% to 6,117.63, the NASDAQ Composite dropped 0.5% to 19,962.36, and the Dow Jones Industrial Average slid 1% to 44,176.90.

Walmart Inc. stabilized in after-hours trading after falling 6.5% during Thursday's session due to weaker-than-expected earnings for the December quarter. Walmart's losses affected other retail stocks amid concerns that U.S. consumer spending'a key economic driver'was cooling after a strong year.

Stocks in Spotlight:

Religare Enterprises jumped 18.97% as the Burman family, the promoters of Dabur, secured majority control of the company and assumed promoter status.

Mahindra & Mahindra (M&M) dropped 5.71% to Rs 2678.20 as the company said it plans to subscribe to shares of Mahindra & Mahindra Financial Services Ltd (MMFSL) and Mahindra Lifespace Developers Ltd (MLDL) to full extent of company's rights entitlement.

M&M's subsidiaries, MMFSL and MLDL, have received board approval to raise funds through rights issues. This means existing shareholders will have the opportunity to buy additional shares in proportion to their current holdings. MMFSL plans to raise up to Rs 3,000 crore, while MLDL will target up to Rs 1,500 crore.

Kamat Hotels (India) rose 1.74% after the company signed a management agreement for the operation and management of the Orchid Hotel located in Mandavi, Kutch District, Gujarat.

Dee Development Engineers declined 1.16%. The company has announced that it has received a Letter of Intent (LoI) worth Rs 27 crore for the supply of fittings for a thermal power plant.

Sanofi Consumer Healthcare India declined 2.86%. The company has reported 1% rise in net profit to Rs 46.35 crore on a 6.8% increase in net sales to Rs 170.70 crore in Q3 FY25 as compared with Q3 FY24. Total operating expenditure rose by 13.8% YoY to Rs 111.50 crore in Q3 FY25.

Samvardhana Motherson International (SAMIL) declined 2.43%. The company has incorporated a wholly owned subsidiary (WOS), Motherson Treasury Strategy (MT), within the jurisdiction of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates.

Easy Trip Planners shed 1.13%. The company signed a memorandum of understanding (MoU) with the Korea Tourism Organization (KTO) to promote South Korea as a premier travel destination for Indian tourists.

NTPC Green Energy rose 0.38%. The company signed memorandum of understanding (MoU) with Bharat Light and Power to support the acceleration of green energy objectives and the Government of India's efforts toward a carbon-neutral economy.

Grindwell Norton slipped 1.54%. The company's board approved the appointment of Venugopal Shanbhag as managing director (MD) for a five-year term, effective from 1 April 2025.