In February, India's private sector grew at the fastest rate in six months, driven by a notable upswing in the services segment. This momentum enabled companies to pass rising input costs on to their customers. The HSBC Flash India Composite PMI, compiled by S&P Global, increased to 60.6 from 57.7 in January—marking the most substantial expansion since August 2023. The services index climbed to 61.1, its highest reading since March 2023, while the manufacturing index, though slightly lower at 57.1, still reflected solid growth. Despite challenges such as potential US tariffs and a decelerating global trade environment, record job creation underscores resilient domestic demand. However, economists caution that these external risks might temper the growth outlook, with forecasts suggesting that the current fiscal year's expansion may slow to a four-year low.

Data

US business activity slowed in February, with the S&P Global Flash US Composite PMI Output Index dropping to 50.4, its lowest level since September 2023, and down from 52.7 in January. The reading, which barely indicates expansion in the private sector, reflects mounting fears over import tariffs and federal spending cuts. The decline erases post-election gains and highlights growing unease among businesses and consumers, raising concerns about the resilience of the US economy under current policies.

Markets

Overnight

US stocks tumbled on Friday, with the S&P 500 posting its largest single-day drop since December 18, as weak economic data and concerns over softening consumer demand weighed on sentiment. The small-cap Russell 2000 and mega-cap momentum stocks also fell sharply, with Nvidia dropping 4.1% ahead of earnings and Tesla and Rivian each sliding 4.7% after recall announcements. The selloff capped a volatile holiday-shortened week marked by tariff threats and economic uncertainty, leaving investors cautious amid growing risks.

US Treasury yields slipped on Friday, with short-dated notes recording their biggest one-day drop since January, as a fresh batch of data raised doubts about the strength of the US economy. Reports revealed that US business activity tumbled to a 17-month low, suggesting that businesses and consumers are growing increasingly wary amid ongoing policy uncertainties under the Trump administration. The yield on the benchmark 10-year Treasury note fell 7.2 basis points to 4.427%, reflecting a shift toward safer assets and growing expectations of a more accommodative Federal Reserve.

The US dollar index rose 0.25% to 106.62 on Friday, gaining ground as the euro stumbled following disappointing business activity surveys that highlighted a sharp contraction in France and only mild improvement in Germany. The euro fell 0.38% to $1.046, while the yen strengthened 0.31% to 149.14 per dollar, though the greenback partially recouped its losses against the Japanese currency.

Brent crude oil prices fell more than 2% on Friday, weighed down by easing supply concerns in Russia and a fading risk premium tied to Middle East tensions, even as uncertainty persisted over a potential Ukraine peace deal. Brent crude futures settled 2.68% lower at $74.43 a barrel, reflecting market recalibration amid shifting geopolitical dynamics and softer demand outlooks.

Day’s Ledger

Economy

• German February Ifo Business Climate Index
• Eurozone January CPI Data

Companies

• Dipna Pharmachem to consider the issue of warrants and preferential issue of shares.
• Gujarat Natural Resources to consider the issue of warrants.
• Lucent Industries to consider amalgamation.
• Pressure Sensitive Systems (India) to consider a rights issue.
• Welspun Specialty Solutions to consider a rights issue.

Policy

• Bank of England member Ramsden speaks.
• German Bundesbank’s Balz speaks.
• India Union Cabinet Minister of Consumer Affairs Joshi to address the media.

Tickers

• ADANI GREEN ENERGY’s step-down subsidiary, Adani Green Energy Twenty Four, has operationalized a solar power project of 250 MW at Bhimsar & Dwada, Jaisalmer, Rajasthan.
• ALLCARGO LOGISTICS stated that less-than-container load volume in January grew by 4% on the year and 1% on the month to 741,000 cubic meters due to the early Lunar New Year.
• AMI ORGANICS has approved the sub-division (or split) of the company’s existing 1 equity share with a face value of ₹10 each into 2 equity shares with a face value of ₹5 each.
• BAJAJ AUTO has approved the company’s plan to invest funds up to €150 million in its subsidiary, Bajaj Auto International Holdings BV, Netherlands.
• BHARTI AIRTEL has approved an increase in Bharti Airtel’s shareholding in its UK-based subsidiary, Airtel Africa plc, by acquiring up to a 5% stake in one or more tranches during 2024-25 through Airtel Africa Mauritius.
• BRIGADE ENTERPRISES proposed to invest ₹15 billion in Kerala, potentially providing employment.
• COAL INDIA has executed a non-binding shareholders' agreement term sheet with EDF India to form a joint venture to undertake PSP projects, along with other renewable energy projects in India and neighboring countries.
• Granules India said it will acquire a 100% stake in Switzerland-based Senn Chemicals AG for ₹1.92 billion.
• LUPIN has received the Establishment Inspection Report (EIR) from the US FDA for its manufacturing facility in Somerset, New Jersey.
• Niva Bupa reported that it was the victim of a cybersecurity breach. In a filing, Niva Bupa said it received an anonymous email claiming that the sender is in possession of customer information and that it is investigating the claim.
• PAISALO DIGITAL has decided to withdraw its proposed preferential issue of 3,37,86,756 convertible equity warrants, primarily due to market volatility and a significant decline in the market price of its shares.
• RAIL VIKAS NIGAM has emerged as the lowest bidder for a project worth ₹1.56 billion from South Western Railway.
• RAILTEL CORPORATION OF INDIA has received a work order from East Central Railway for works amounting to ₹2.88 billion.
• SWIGGY has approved the investment of up to ₹10 billion via a rights issue in Scootsy Logistics in one or more tranches.
• UJJIVAN SMALL FINANCE BANK has approved a proposal for the sale of NPA and written-off loans worth ₹3.65 billion to an asset reconstruction company.
• VEDANTA has been declared the preferred bidder for the Kauhari Diamond block, with the highest final price offer of 1.10%.

Must Read

• UK, EU step up FTA talks with India in the US President Donald Trump era.
• RBI for foreclosure of business loans to MSEs, individuals.
• Kerala gets investment proposals worth ₹1.53 lakh crore at investors summit.
• Bacardi is high on India, ramps up investments as business grows.
• Liquidity is like a Chakravyuh: Shaktikanta Das.
• The US deports the fourth batch of illegal Indian immigrants via Panama; the flight lands in Delhi: Report.
• India fines BBC for alleged foreign exchange violations, sources say.
• Coal India and France's EDF to form a renewables joint venture.
• The US says revenue from minerals deal will fuel Ukraine’s postwar growth.
• Zelenskiy says he would be ready to quit for the sake of Ukraine's peace.
• Germany’s conservatives set to win the election as the far-right AfD leaps to second place, exit polls show.

Daily Mantra
Each new day is a blank canvas—fill it with determination and hope. Embrace challenges as opportunities to grow, and let every small victory light your path. Stay positive and persistent, knowing that each step forward builds a brighter future. Your unique journey inspires others, so keep shining with unwavering courage.