Barometers trade near flatline; broader mkt outperforms

The key domestic indices traded near the flatline with some negative points in the afternoon trade, as concerns over potential US tariffs on automobiles, pharmaceuticals, and semiconductors dampened market sentiment. The Nifty traded below the 22,950 mark.

Realty, PSU Bank and metal shares advanced while IT, Pharma and auto shares declined.

At 13:25 IST, the barometer index, the S&P BSE Sensex, shed 22.75 points or 0.03% to 75,944.06. The Nifty 50 index declined 16.95 points or 0.07% to 22,928.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 0.91% and the S&P BSE Small-Cap index gained 2.01%.

The market breadth was strong. On the BSE, 2,733 shares rose and 1,116 shares fell. A total of 144 shares were unchanged.

Economy:

The unemployment rate in India for people aged 15 years and above in urban areas dropped to 6.4% in the October-December quarter of 2024, according to the National Sample Survey Survey (NSSO). This was unchanged on a quarterly basis. Among males, the unemployment rate in urban areas was flat at 5.8% in October-December 2024 as compared to the rate of the same quarter a year ago. The rate was 5.7% in July-September 2024. The unemployment rate among females (aged 15 years and above) in urban areas dropped to 8.1% in October-December 2024 from 8.6% in the same quarter a year ago. The rate was 8.4% in July-September 2024.

Gainers & Losers:

Bharat Electronics (up 2.93%), Larsen and Toubro (up 2.06%), Axis Bank (up 1.66%), Hindalco Industries (up 1.51%), and ICICI Bank (up 1.05%) were the major Nifty gainers.

Tata Consultancy Services (down 2.48%), Dr Reddy's Laboratories (down 2.28%), Hindustan Unilever (down 2.01%), Infosys (down 1.89%), and Bharti Airtel (down 1.63%) were the major Nifty losers.

Stocks in Spotlight:

Ashok Leyland rose 0.99%. The company announced that it has received an order to supply 320 BS VI Diesel Fuel Type 12-meter low-floor fully built buses to the Tamil Nadu State Transport Corporation, valued at Rs 297.85 crore.

Veefin Solutions added 1.32% after the company announced the signing of an agreement with UAE-based Invest Bank for digitizing the latters Supply Chain Finance (SCF) offerings.

Container Corporation of India (CONCOR) added 2.06% after the company announced that it has awarded an Rs 689.76 crore contract to Braithwaite & Co. for the manufacture and supply of 30 BLSS (spine car) rakes on a turnkey basis.

Transformers and Rectifiers (India) was locked in upper circuit of 5% after the company announced that it has bagged an order worth Rs 166.45 crore from Hyosung T&D India.

Mahindra Lifespace Developers rose 0.70%. The company has announced a partnership with Livingstone Infra (LS) for a cluster redevelopment project in Mahalaxmi, featuring a gross development value (GDV) of Rs 1,650 crore.

Global Markets:

European markets traded mixed on Wednesday as investors assessed numerous earnings releases and a hotter-than-expected U.K. inflation print.

Europes largest lender, HSBC, earlier on Wednesday reported an annual pre-tax profit of $32.31 billion, marginally missing analysts estimates, as the banks net interest income declined by $3.1 billion from a year earlier.

The U.K.s inflation rate rose to 3% in January above the 2.8%, according to data released by the Office for National Statistics (ONS) on Wednesday. Core inflation, excluding energy, food, alcohol, and tobacco prices, hit 3.7%, up from 3.2% in the previous month and the highest rate since April 2024.

Asian stock markets traded mixed as Japan reported a larger-than-expected trade deficit of 2.76 trillion yen ($1.8 billion) for the latest period, reversing a prior surplus and exceeding forecasts of a 2.10 trillion yen deficit. Improving domestic demand and a stronger yen sparked an outsized surge in imports, while export growth was also slightly underwhelmed.

Early Asian trading hours were marked by reports of potential 25% U.S. tariffs on automobile, semiconductor, and pharmaceutical imports, with a possible announcement in the coming as soon as April 2.

Investors are awaiting U.S. purchasing managers index (PMI) data for February, seeking further clarity on the U.S. economy's resilience amidst persistent inflation and trade-related uncertainties.

U.S. equities reached record highs on Tuesday, though gains were moderate ahead of Federal Reserve policy signals. The S&P 500 closed at a record high of 6,129.62, representing a 0.24% increase. The NASDAQ Composite rose marginally by 0.07% to 20,041.26. The Dow Jones Industrial Average remained relatively unchanged at 44,556.16.

In Saudi Arabia, the U.S. and Russia engaged in preliminary talks, with the U.S. seeking to gauge Russia's sincerity regarding a peace settlement in Ukraine.

The Federal Reserve is scheduled to release the minutes of its recent policy meeting, which will be closely scrutinized for insights into the central bank's interest rate strategy, particularly following signals of a prolonged pause in rate reductions. Investor focus is on what the feds minutes may reveal about rate intentions.

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