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- Tuesday saw a dip in India’s Nifty and Sensex, influenced by global market caution and subdued Indian PMI figures.
- On Monday, Nifty and Sensex reached new all-time highs, propelled by India’s growth narrative and the ongoing global market upswing.
- Attention now turns to the US ISM Services Purchasing Managers Index (PMI), Federal Reserve Chair Powell’s remarks, and the upcoming US Nonfarm Payrolls data.
On Tuesday, India’s primary benchmark indices, the Sensex 30 and Nifty 50, underwent a correction, concluding the session in negative territory.
Concerns about risk permeated Asian and European markets, fueled by disappointing Services PMI data for February in both India and China.
The Nifty 50 on the National Stock Exchange (NSE) and the Sensex 30 on the Bombay Stock Exchange (BSE) concluded the day with a marginal 0.25% decline, closing at 22,356.30 and 73,677.13, respectively.
Stock market news
- Bharti Airtel, Tata Motors, SBI Bank, Bajaj Auto, and ONGC led the gainers on the Nifty, while Bajaj Finance, TCS, Nestle India, Infosys, and Bajaj FinServ emerged as the primary decliners.
- IT stocks witnessed a decline following CLSA’s downgrade of TCS and HCL, along with a reiterated sell call on Wipro, LTI, and Mindtree.
- Under its rural enhancement initiative, Bharti Airtel extended its network coverage in Ernakulam and Idukki District.
- Market sentiments are dampened as the Chinese Caixin Services PMI unexpectedly falls to 52.5 in February. Additionally, the risk sentiment is influenced by China’s setting of its 2024 GDP growth target at approximately 5.0%.
- Moreover, the HSBC India Services Purchasing Managers’ Index, compiled by S&P Global, declined to 60.6 last month, down from January’s six-month peak of 62.0, falling short of the anticipated figure of 62.0.
- On Monday, Moody’s revised India’s 2024 GDP growth forecast to 6.8%, up from the previous estimate of 6.1%.
- On Friday, India’s manufacturing sector reached a five-month peak, registering a figure of 56.9 in February.
- On Monday, the US stock markets concluded with a decline, reflecting a cautious sentiment prevailing ahead of a week filled with significant events.
- In the previous week, the US manufacturing sector experienced a faster contraction in February, as the ISM Manufacturing PMI declined to 47.8 from January’s 49.1. The figure significantly undershot market expectations of 49.5.
- Presently, there is approximately a 30% likelihood, as per the CME FedWatch Tool, that the Federal Reserve might initiate rate easing in May. This represents a slight increase from the 20% probability observed a week ago. Meanwhile, for the June meeting, the probability of a rate cut has risen to approximately 67%.
- Data from the National Statistical Office (NSO) on Thursday revealed that India’s Gross Domestic Product (GDP) grew by 8.4% year-on-year in the third quarter (October-December). This marks an increase from the 7.6% growth recorded in the preceding quarter.
- The Indian markets will experience a shortened week due to the observance of the Mahashivratri festival, leading to closure on Friday.
- The primary factors contributing to market uncertainty this week include India’s Services PMI, the testimony of US Federal Reserve (Fed) Chair Jerome Powell, and the highly significant US Nonfarm Payrolls data.
- Another noteworthy event involves the convening of China’s National People’s Congress (NPC) meeting, where the possibility of introducing new stimulus measures might be indicated.
