News FromStock Market
NIFTY 50: Closed at 22,397.20, down 73.30 points (-0.33%). The index saw early gains erased due to selling pressure in heavyweight stocks like Reliance Industries and HDFC Bank.
SENSEX: Declined 200.85 points (-0.27%) to settle at 73,828.91. Weakness in banking and energy stocks contributed to the downward trend.
Sectoral Indices
BSE SMALLCAP: Declined 272.83 points (-0.62%) to 43,844.98, reflecting cautious sentiment among retail investors amid market volatility
NIFTY BANK: Bucked the trend, inching up 3.75 points (0.01%) to 48,060.40, supported by selective buying in major banking stocks.
NIFTY IT: Dropped 188.15 points (-0.52%) to 36,122.50, despite moderate U.S. inflation data, as concerns over global economic slowdown lingered.
IT Stocks Gain on U.S. Inflation Data
IT stocks saw an uptick after U.S. consumer prices rose moderately in February. However, analysts view this as a temporary relief, as the data does not fully reflect the impact of Trump’s tariffs. IT companies, which generate a significant portion of their revenue from the U.S., benefitted from the data.
Jio Finance’s Commercial Paper Issuance
India’s Jio Finance, a wholly-owned subsidiary of Jio Financial Services, tapped the debt market with its maiden commercial paper (CP) issuance ahead of a planned bond sale later this month. The company issued three-month CPs at a yield of 7.80%, accepting bids worth ₹10 billion ($114.95 million), according to sources familiar with the matter.
ITC Hotels Sees Upside Potential
Brokerage firm Ambit Capital has initiated coverage on ITC Hotels with a “buy” rating, setting a target price of ₹230. This represents a potential upside of 37% from its current market price of ₹168.20 on the BSE. The stock, which was listed on January 29, has moved within a narrow range of 15% since its debut. Over the past month, ITC Hotels shares have fallen by 3.82%.
Macroeconomic Indicators and Market Outlook
If inflation remains high, the U.S. Federal Reserve may delay interest rate cuts, potentially reducing IT sector spending. Meanwhile, capital market stocks declined as systematic investment plan (SIP) inflows into mutual funds dropped to a three-month low of ₹25,999 crore in February due to market volatility.
On a positive note, India’s industrial output growth exceeded expectations, rising 5% year-on-year in January 2025 compared to 3.2% in December 2024. According to Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, these factors could inject some optimism into the markets on Thursday. However, he expects the market to remain range-bound with intermittent volatility and sector rotation.
