The frontline indices traded near the flatline with minor gains in mid-morning trade, supported by softer-than-expected inflation data from both the U.S. and India, which eased investor concerns. The Nifty traded above the 22,450 mark. Trading could be volatile due to the weekly Nifty50 F&O series expiry today.
Bank shares extended gains for the second consecutive trading session.
At 11:30 IST, the barometer index, the S&P BSE Sensex, rose 91.01 points or 0.12% to 74,103.60. The Nifty 50 index added 8.35 points or 0.04% to 22,478.85.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index declined 0.18%.
The market breadth was negative. On the BSE, 1,870 shares rose and 1,793 shares fell. A total of 154 shares were unchanged.
Economy:
India’s retail inflation eased to a seven-month low of 3.61% in February 2025, down from 4.31% in January, as food price pressures softened, according to government data released on Wednesday. This brings inflation below the Reserve Bank of India’s (RBI) medium-term target of 4% for the first time since August 2024.
Meanwhile, India’s industrial output growth picked up to 5% year-on-year in January 2025, compared to 3.2% in December 2024.
Buzzing Index:
The Nifty Bank index added 0.41% to 48,253.90. The index rallied 0.83% in two consecutive trading sessions.
Bank of Baroda (up 1.59%), State Bank of India (up 0.81%), ICICI Bank (up 0.61%), Canara Bank (up 0.57%), HDFC Bank (up 0.46%), Punjab National Bank (up 0.37%), Axis Bank (up 0.21%) and Kotak Mahindra Bank (up 0.10%) advanced.
On the other hand, IDFC First Bank (down 0.79%), Federal Bank (down 0.54%) and AU Small Finance Bank (down 0.35%) edged lower.
Stocks in Spotlight:
BEML rallied 3.24% after the company announced that it has signed two memorandums of understanding (MoUs) to expand its presence in the rail and dredging sectors.
NTPC Green Energy added 0.29%. The company announced that its subsidiary, NTPC Renewable Energy, has declared the second and final phase of its 105 MW Shajapur Solar Project in Madhya Pradesh fully operational.
Premier Explosives added 1.84% after the company announced that it has received an export order for Rs 21.45 crore from international clients.
Global Markets:
US Dow Jones index futures were down 138 points, indicating a negative opening in the US stocks today.
Most Asian shares traded lower on Thursday, following an overnight rebound in U.S. tech stocks. However, persistent concerns over trade tensions and global economic uncertainties suggest that market volatility is not going away anytime soon.
On Wednesday, major U.S. stock indices closed higher after a cooler-than-expected US CPI inflation report, but gains were tempered by renewed tariff threats from President Donald Trump. The S&P 500 climbed 0.5%, while the tech-heavy NASDAQ Composite surged 1.2%. The Dow Jones Industrial Average, however, edged 0.2% lower.
Inflation data showed a slight cooling, with the U.S. consumer price index (CPI) rising 2.8% year-over-year in February, down from January's 3% increase. The core CPI, which excludes volatile food and energy prices, recorded a 3.1% uptick—its slowest pace since 2021.
Despite easing inflation, investors remain wary. Trump's decision to impose 25% tariffs on all steel and aluminum imports has reignited fears of higher prices, potentially offsetting any economic relief from cooling inflation.
The European Union quickly responded, announcing counter-tariffs on $28 billion worth of U.S. goods, set to take effect in April. Canada followed suit, slapping retaliatory tariffs on $21 billion worth of American imports, including steel and aluminum. As tensions mount, concerns of a global trade war are intensifying, raising the risk of rising consumer prices and potential job losses across key industries.