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By Richard Fargose
March 12, 2025 at 1:21 PM IST
Highlights
• Jio Platforms announces tie-up with SpaceX for Starlink
• PB Fintech shares slips on announcing a ₹6.96 billion investment in its healthcare arm
• Mutual fund industry AUM declines the most since March 2020
• Infosys shares fall 4% after Morgan Stanley downgrades, cuts target price
• Shruti Shibulal buys Infosys shares worth ₹4.94 billion
• India’s retail inflation eases to 7-month low of 3.61% in February
The Sensex and Nifty ended lower but recovered sharply from the day's lows. While the broader market breadth favoured declines, financial stocks provided crucial support.
The Midcap Index dropped by 276 points, or 0.6% ending at 48,487, highlighting the ongoing cautious sentiment among investors.
| Indices | Last | Change | % Change |
| Sensex | 74,029.76 | -72.56 | -0.10% |
| NIFTY 50 | 22,470.50 | -27.40 | -0.12% |
| NIFTY MIDCAP 100 | 48,486.60 | -276.15 | -0.57% |
| NIFTY SMALLCAP 100 | 15,044.35 | -31.55 | -0.21% |
| INDIA VIX | 13.69 | -0.38 | -2.70% |
SECTORAL PERFORMANCE
The financials sector was buoyed by strong performance from heavyweight stocks such as HDFC Bank and Kotak Mahindra Bank, which were the top contributors to the Nifty Bank's gains. IndusInd Bank made a notable recovery, up by 5%, bouncing back from the lows hit in the previous session.
Information technology stocks took a hit on the back of negative brokerage notes. Infosys was the biggest drag on Nifty 50, falling nearly 4% as concerns over slowing US client spend weighed on software exporters.
| Top Losers | % Change | Top Losers | % Change |
| NIFTY HEALTHCARE INDEX | 0.6% | NIFTY IT | -2.9% |
| NIFTY FINANCIAL SERVICES | 0.5% | NIFTY REALTY | -1.7% |
| NIFTY AUTO | 0.5% | NIFTY MEDIA | -1.5% |
| NIFTY PHARMA | 0.5% | NIFTY METAL | -0.5% |
| NIFTY BANK | 0.4% |
Yields on 10-year government bonds ended marginally lower after as February inflation came in lower than expected, further cementing hopes of monetary policy easing.
India’s retail inflation eased to 3.61% in February, the lowest since July and below the RBI’s medium-term target of 4%, mainly due to a decline in vegetable prices. This strengthens the case for the central bank to consider further rate cuts.
| Tenure | Today | Previous |
| 10-year Gilt | 6.68% | 6.69% |
| 5-year gilt | 6.60% | 6.61% |
| 5-year OIS | 5.97% | 5.98% |
The Indian rupee ended largely steady against the US dollar amid volatile global sentiment on tariff uncertainties and some recovery in the dollar index.
Market participants exercised caution ahead of key macroeconomic data releases in India and the US later in the day. The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.2% to 103.51.
| Unit | Today | Previous |
| Dollar/Rupee | 87.19 | 87.21 |
| Dollar Index | 103.53 | 103.27 |
| 1-year Dollar/rupee premium (%) | 2.16% | 2.20% |
OUTLOOK
Indian equities are expected to remain volatile as persistent uncertainties surrounding global trade and the fear of a US recession continue to influence the domestic market's momentum. Fear of spillover of ongoing correction in US equities have kept investors on edge. The US market is under pressure from weakening economic data and uncertainty over tariff policy.
The rupee is expected to move between 87.00 and 87.60.
Key Events & Data on Thursday.
Economic Data:
- Eurozone industrial production data
- IEA monthly report
- US February PPI data
- US weekly initial jobless claims data
Corporate Actions:
- Angel One board to consider dividend
- Gensol Engineering board to consider fundraising plans and stock split
- IIFL Finance board to discuss fundraising plans
- Kolte - Patil Developers board to discuss fundraising plans
Other Key Events:
- ECB's De Guindos speaks
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