In the week ended on Friday, 07 March 2025, the S&P BSE Sensex soared 1,134.48 points or 1.55% to settle at 74,332.58. The Nifty 50 index climbed 427.8 points or 1.93% to settle at 22,552.50. The BSE Mid-Cap index rallied 3.35% to close at 39,888.29. The BSE Small-Cap index jumped 5.85% to end at 45,606.86.

Weekly Index Movement:

The domestic equity benchmarks opened higher but closed with minor losses on Monday. The S&P BSE Sensex fell 112.16 points, or 0.15%, to 73,085.94. The Nifty 50 index shed 5.40 points, or 0.02%, to 22,119.30.

The domestic equity benchmarks declined on Tuesday. The S&P BSE Sensex, fell 96.01 points or 0.13% to 72,989.93. The Nifty 50 index shed 36.65 points or 0.17% to 22,082.65.

The domestic equity benchmarks erupted with significant gains on Wednesday. The S&P BSE Sensex jumped 740.30 points or 1.01% to 73,730.23. The Nifty 50 index surged 254.65 points or 1.15% to 22,337.30.

The domesic benchmark indices closed with strong gains for the second day in a row on Thursday. The S&P BSE Sensex surged 609.86 points, or 0.83%, to 74,349.09. The Nifty 50 index added 207.40 points, or 0.93%, to 22,544.70.

The key equity benchmarks ended sideways on Friday. The S&P BSE Sensex, shed 7.51 points, or 0.01%, to 74,332.58. The Nifty 50 index rose 7.80 points, or 0.03%, to 22,552.50.

FIR against ex-SEBI chief:

A special court has directed the Anti-Corruption Bureau (ACB) to register a first information report (FIR) against former SEBI chairperson Madhabi Puri Buch, the whole-time members of the market regulator, and two BSE officials on charges of alleged stock market fraud, regulatory violations, and corruption linked to the listing of a company in 1994. The Securities and Exchange Board of India (SEBI) said it would take legal steps to challenge the order. The order comes just two days after Buch completed her tenure as SEBI chief.

Politics:

The BJP secured two out of three Member of Legislative Council (MLC) seats in Telangana, winning the prestigious Karimnagar-Medak-Nizamabad-Adilabad Graduates constituency. BJP’s Chinnamile Anji Reddy triumphed by a margin of 5,106 votes after the second-preference count of votes. He received a total of 98,637 votes, while his immediate Congress rival V Narender Reddy got 93,531.

A day before, the BJP and Progressive Recognized Teachers Union (PRTU) had bagged one each of the two teachers’ MLC seats for which elections were held. M Komaraiah of the BJP bagged the Medak-Nizamabad-Karimnagar-Adilabad teachers’ MLC seat while PRTU candidate P. Sripal Reddy won the Nalgonda-Warangal-Khammam teachers’ constituency.

Economy:

India’s real GDP picked pace sequentially to grow 6.2% in October-December 2024 (Q3 of 2024-25 or FY25) compared with 5.6% in July-September 2024 (Q2), aided by accelerating consumption demand, quarterly GDP estimates released by the National Statistics Office showed Friday. In Q3 of 2023-24, the GDP had grown 9.5%.

For the full financial year FY25, the GDP growth rate, as per the second advance estimates, is seen marginally higher at 6.5% as against the 6.4% in the first advance estimates released in January.

India's fiscal deficit touched 74.5% of the annual target at the end of January 2025, according to the data released by the Controller General of Accounts (CGA). In actual terms, the fiscal deficit was Rs 11,69,542 crore during the April- January 2024-25 period. The deficit was 63.6% of the Revised Estimates (RE) of 2023-24 in the year-ago period.

India's gross GST collections rose by 9.1% to about Rs 1.84 lakh crore in February, boosted by domestic consumption and indicating a potential economic revival.

The production growth in India's eight key infrastructure sectors grew by 4.6% year-on-year in January, slightly slower than the 4.8% growth recorded in December, according to official data released on Tuesday. The performance of key sectors showed mixed results, with energy-related industries, in particular, facing slowdowns.

India’s manufacturing growth fell in February, after rising to a six-month high in January, as sales and output growth retreated to a 14-month low, a private survey released on Monday said.

The HSBC India Manufacturing Purchasing Managers Index (PMI), compiled by S&P Global, fell to 56.3 in February from 57.7 in January. It was 56.4 in December and 56.5 in November.

A PMI reading above 50 indicates an expansion, and below that indicates a contraction. The February PMI number was based on responses from 400 manufacturers.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from January's 26-month low of 56.5 to 59.0 in February, indicating a sharp rate of expansion that was well above its long-run average.

The HSBC India Composite Output Index rose from 57.7 to 58.8, indicating a substantial rate of expansion. The acceleration in growth was centered in the service economy, as manufacturers registered a slower upturn.

Auto Sales Impact:

Bajaj Auto fell 4.34%. The company reported 2% increase in total auto sales to 3,52,071 units in February 2025 as against 3,46,662 units in February 2024.

Eicher Motors soared 7.37%. The company’s unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 9% year-on-year growth in commercial vehicle (CV) sales to 8,092 units in February 2025.

Further, the company’s monthly motorcycle sales in Feb’25 stood at 90,670 units, which is higher by 19% as compared with 75,935 units in the same month a year ago.

Mahindra & Mahindra jumped 5.68%. The company’s overall auto sales grew by 14.78% to 83,702 vehicles sold in February 2025 as against 72,923 vehicles sold in February 2024.

Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during February 2025 were at 25,527 units, up 18% from 21,672 units in February 2024.

Tata Motors rallied 4.49%. The company’s total sales tumbled 8.17% to 79,344 units in February 2025 as compared with 86,406 units in February 2024.

Maruti Suzuki India slipped 2.18%. The car manufacturer announced that its total production increased 0.98% to 199,400 units in February 2025 as against 197,471 units recorded in February 2024.

Hyundai Motor India (HMIL) shed 0.70%. The company said that it has recorded total monthly sales of 58,727 units in February 2025, comprising domestic sales of 47,727 units and export sales of 11,000 units.

TVS Motor Company gained 4.76%. The company’s total sales jumped 10% to 403,976 units in February 2025 as against 368,424 units in February 2024.

VST Tillers Tractors declined 1.80% after the company’s total sales fell by 21.82% to 3,260 units in February 2025 from 4,170 units sold in February 2024.

Force Motors climbed 15.01%. The company reported 46.28% increase in auto sales to 3,600 units in February 2025 compared with 2,461 units sold in February 2024.

Ashok Leyland slipped 1.04%. The company reported 2% rise in total commercial vehicle sales to 17,903 units in February 2025 from 17,632 units sold in February 2024.

Steel Strips Wheels (SSWL) shed 0.73%. The company reported a net turnover of Rs 407.74 crore for February 2025, registering 18.88% YoY growth compared to Rs 342.98 crore posted in February 2024.

SML Isuzu climbed 20.13%. The vehicle manufacturer said that it has sold 1,288 units in February 2025, registering a growth of 27.5% from 1,010 units sold in the same period last year.

Stocks in Spotlight:

Larsen & Toubro (L&T) advanced 2.55%. The company said that its power transmission & distribution (PT&D) vertical has secured ‘large’ orders in India and abroad. The value of the contract, according to L&T's internal classification, ranges between Rs 2,500 crore and Rs 5,000 crore.

Additionally, the company announced that its Building & Factories (B&F) vertical has secured significant orders from a reputed developer for the construction of residential towers in Mumbai, Bangalore, and Chennai.

Adani Ports and Special Economic Zone (APSEZ) soared 6.94%. The company delivered a monthly cargo volume of 35.6 MMT in February 2025, marking a 3% increase on a year-on-year (YoY) basis.

Reliance Industries (RIL) rallied 4.12%. A foreign broker reaffirmed its "buy" rating on the stock, setting a target price of Rs 1,600. The foreign broker cited a potential recovery in RIL’s retail business and an anticipated tariff hike in its telecom unit as key growth drivers.

Adding to the momentum, a domestic brokerage upgraded RIL to "buy" with a revised target of Rs 1,400, citing an improved risk-reward outlook following the recent stock correction.

Meanwhile, the company announced its intention to challenge a $2.81 billion demand from the Ministry of Petroleum and Natural Gas, following a recent ruling by the Division Bench of the Delhi High Court. The demand stems from a long-standing dispute concerning alleged gas migration from Oil and Natural Gas Corporation (ONGC) blocks to the KG-D6 Consortium’s blocks, in which Reliance is a key partner. "The Company is legally advised that the Division Bench judgment and this provisional demand are unsustainable," RIL stated in its disclosure.

Britannia Industries gained 3.21%. The FMCG major announced that Rajneet Singh Kohli has resigned from his position as executive director and chief executive officer of the company, effective from 14 March 2025.

CreditAccess Grameen jumped 4.82%. The microfinance institution reported robust loan portfolio growth across most of its operational geographies, adding over 150,000 new borrowers in January and February. This brings its Gross Loan Portfolio (GLP) to Rs 25,395 crore in February 2025, up from Rs 24,810 crore in December 2024.

Omaxe surged 9.42%. The company announced that the UPSRTC has awarded a contract to modernize six key bus terminals in the state under PPP model to BeTogether.

NMDC rallied 7.27%. The company has announced the appointment of Amitava Mukherjee as the chairman and managing director (CMD) of the company, effective from 6 March 2025.

Rail Vikas Nigam (RVNL) added 2.58%. The company announced that it has received a letter of acceptance (LoA) for an EPC contract worth Rs 156.35 crore from South Western Railway.

J.Kumar Infraprojects rose 1.70%. The company announced it had received a Letter of Award (LoA) worth Rs 120.87 crore from Mumbai Railway Vikas Corporation (MRVC) for the construction of major bridges.

Global Markets:

China’s Caixin Manufacturing PMI climbed to 50.8 in February, beating expectations of 50.4 and rising from January’s 50.1. This marks the index’s largest jump since November and its fifth consecutive month of expansion, signaling steady economic momentum.

China on Wednesday set its GDP growth target for 2025 at around 5%. The country has also lowered its inflation expectations to “around 2%.”

China's Caixin services PMI came in at 51.4 in February, above expectations for a 50.8 print. The reading was higher than the 51.0 seen in January.

China’s export growth slowed more than expected at the start of the year, according to data from the customs authority released on Friday, as higher U.S. tariffs partly offset momentum in the country’s rare bright spot. Exports in the January to February period rose 2.3% in U.S. dollar terms from a year earlier, significantly undershooting expectations of a 5% increase.

Japan's unemployment rate for January edged up to 2.5%, compared to 2.4% in the previous month, according to government data released on Tuesday.

South Korea's retail sales in January declined by 0.6% compared to the previous month. Revised estimates show a 0.2% increase in December. The S&P Global purchasing managers’ index for South Korea fell to 49.9 in February from 50.3 the month before. This marks the fourth time in the last six months that the index has fallen below 50, which separates expansion from contraction.

South Korea’s consumer inflation for February rose 2% year on year, more than the expected 1.95% increase and slower than the 2.2% gain in January. It also affords more room for South Korea’s central bank to cut rates further as the country struggles with a slowing economy.

Australia’s S&P Global Manufacturing purchasing manager's index reading for February came in at 50.4, similar to the previous month's 50.6 reading.

Australia’s gross domestic product rose 0.6% quarter-on-quarter, data from the Australian Bureau of Statistics showed on Wednesday. The print picked up from the 0.3% seen in the prior quarter. GDP grew 1.3% year-on-year, above expectations of 1.2% and higher than the 0.8% seen in the prior quarter.

Euro zone inflation eased to 2.4% in February as against 2.5% reading of January according to flash data from statistics agency Eurostat.

The U.S. economy deepened with a string of weak data points, pushing the Atlanta Fed’s GDPNow tracker to an annualized -1.5% from +2.3%, fueling recession fears.

In U.S, on the economic front, the PCE price index—the Fed's preferred inflation gauge—rose 0.3% in January, matching December’s pace. Year-over-year, inflation eased slightly to 2.5% from 2.6%. Core inflation (excluding food and energy) also increased 0.3% month-over-month, with a year-on-year dip to 2.6% from December’s 2.9%.

However, despite this moderation in inflation, consumer sentiment declined by 0.2% in January—its first drop in nearly two years, raising concerns about spending trends ahead.

The ISM Services PMI rose to 53.5 in February from 52.8 in January, beating forecasts and signaling resilience in economic activity.

U.S. jobless claims fell more than expected last week to 221,000, signaling a strong labor market. For the week ending February 22, initial claims under the Unemployment Compensation for Federal Employees program rose to 1,634, up from 614 the previous week.