The domestic equity indices ended with moderate declines this week as investor sentiment was negatively impacted by persistent selling from Foreign Institutional Investors (FIIs) in Indian equities. Concerns over U.S. President Donald Trump's trade policies, including his recent decision to impose import taxes on steel and aluminum, contributed to the cautious atmosphere. This move triggered retaliatory tariffs from the European Union (EU) and Canada. Additionally, fears of a potential recession in the United States added to the overall market uncertainty.
The broader market underperformed the frontline indices.
In the week ended on Thursday, 13 March 2025, the S&P BSE Sensex slipped 503.67 points, or 0.68%, to settle at 73,828.91. The Nifty 50 index dropped 155.3 points, or 0.68%, to settle at 22,397.20. The BSE Mid-Cap index fell 2.06% to close at 39,062.82. The BSE Small-Cap index declined 3.86% to end at 43,844.98.
Weekly Index Movement:
The domestic benchmark equity indices declined on Monday. The S&P BSE Sensex fell 217.41 points, or 0.29%, to 74,115.17. The Nifty 50 index lost 92.20 points, or 0.41%, to 22,460.30.
The domestic equity benchmarks ended Tuesday's session near the flat line, recovering from a weak start. The S&P BSE Sensex shed 12.85 points, or 0.02%, to 74,102.32. The Nifty 50 index added 37.60 points, or 0.17%, to 22,497.90.
The domestic equity benchmarks ended with minor losses on Wednesday. The S&P BSE Sensex shed 72.56 points, or 0.10%, to 74,029.76. The Nifty 50 index lost 27.40 points, or 0.12%, to 22,470.50.
The key equity indices closed with modest losses on Thursday. The S&P BSE Sensex declined 200.85 points, or 0.27%, to 73,828.91. The Nifty 50 index lost 73.30 points, or 0.33%, to 22,397.20.
The stock market will remain closed on Friday, 14th March 2025, in observance of Holi.
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.
Stocks in Spotlight:
IndusInd Bank slumped 28.25%. The bank reported discrepancies in account balances within its derivative portfolio following an internal review. The bank estimates a potential adverse impact of approximately 2.35% of its net worth as of December 2024. The discrepancies were identified during a review of "Other Asset and Other Liability accounts" related to the derivative portfolio, prompted by the implementation of the RBI's new Master Direction on investment portfolios.
According to the media reports, this could lead to an adverse impact on its net worth by about Rs 1600 crore, and the bank plans to absorb this loss in its fourth-quarter earnings or the first quarter of the next fiscal year.
Coal India (CIL) shed 0.59%. The company said that it has signed a memorandum of understanding (MoU) with the Indian Institute of Technology, Hyderabad (IIT-H), to develop clean coal technologies and diversification in coal utilization.
Bharti Airtel rose 0.13% while Reliance Industries shed 0.13%. Both companies announced agreements with SpaceX to introduce Starlink's high-speed internet services to their Indian customers. However, both agreements are contingent upon SpaceX securing necessary authorizations to operate Starlink within India.
PB Fintech dropped 5.03%. The company announced a proposed Rs 696 crore investment in its wholly-owned healthcare subsidiary, PB Healthcare Services, for the financial year 2025-26. PB Healthcare Services, incorporated in January 2025, operates within the rapidly expanding healthcare and allied services sector in India.
Infosys tumbled 6.31%. The foreign broker downgraded its rating for the IT giant from "overweight" to "equal-weight." The broker also lowered the target price from Rs 2,150 to Rs 1,740, citing concerns over slowing growth and stretched valuations.
The foreign broker cited "downside risks emerging for both the revenue growth of Indian IT services and valuation multiples" as the primary reason for the downgrade. These concerns are compounded by a possible US economic slowdown and trade policy uncertainties.
Adani Green Energy rallied 4.33%. The company announced that its wholly owned step-down subsidiary, Adani Solar Energy Ap Eight, has commissioned a 250 MW solar power project at Kadapa, Andhra Pradesh.
Bodal Chemicals surged 8.94%. The Indian government imposed anti-dumping duties on Trichloroisocyanuric Acid (TCCA) imports from China and Japan. Bodal Chemicals is the sole Indian producer of TCCA 90, with a 12,000 MT per year production capacity at its Khambhat, Gujarat facility.
Lupin slipped 3.19%. The company announced that it has launched Rivaroxaban tablets USP, 2.5 mg, in the US market following final approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA). Rivaroxaban is indicated for reducing the risk of major cardiovascular events in patients with coronary artery disease (CAD) and major thrombotic vascular events in patients with peripheral artery disease (PAD), including those who have undergone lower extremity revascularization due to symptomatic PAD.
Glenmark Pharmaceuticals shed 0.10%. The company has announced the launch of 'Polyethylene Glycol 3350 Powder for Solution' as an OTC product in the US market. Polyethylene glycol is an osmotic laxative. It prevents and treats occasional constipation.
Indian Renewable Energy Development Agency's (IREDA) dropped 6.67%. The Reserve Bank of India (RBI) rejected the company's request for equity investment in the 900 MW Upper Karnali Hydropower Project in Nepal.
Global Markets:
The European Union reacted to U.S. President Trump's 25% tariffs on steel and aluminum imports by announcing counter-tariffs on Euro 26 billion ($28.33 billion) worth of U.S. goods, set to begin in April. The move was aimed at protecting EU consumers and businesses. While the White House confirmed the tariffs would impact Canada, Australia, the EU, and others, it clarified that Trump no longer intended to raise tariffs on Canadian metals to 50%.
German exports dropped 2.5% month-on-month in January, adding to concerns over slowing global trade.
China's consumer inflation dipped into negative territory for the first time in 13 months, driven by seasonal distortions and broader economic headwinds. The consumer price index (CPI) fell 0.7% year-over-year in February, reversing a 0.5% gain in January, according to the National Bureau of Statistics.
In Japan, fresh government data showed the economy grew at an annualized rate of 2.2% in Q4, down from an earlier estimate of 2.8%. However, the reading remained well above the previous quarter’s 1.2% expansion. Quarter-on-quarter, GDP growth was revised slightly lower to 0.6% from 0.7%, still ahead of the prior 0.3% pace.
Japan’s annual wholesale inflation hit 4% in February, slowing from the seven-month high of 4.2% the month before. The latest reading is still well above the country’s 2% inflation target and raises bets that the Bank of Japan will hike interest rates.
The U.S. economy added 151,000 jobs in February, falling short of expectations, while the unemployment rate ticked up to 4.1% from January's 4.0%, signaling possible cracks in labor market resilience.
The U.S. consumer price index (CPI) rose 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.