Indices nudge lower; breadth weak

The headline equity benchmarks traded with modest losses in early trade as investors remained cautious following Trump's decision to impose 25% tariffs on steel and aluminum imports, with more trade measures potentially ahead. The Nifty traded below the 23,350 mark. Barring the FMCG and IT index, all the other sectoral indices on the NSE were traded in red.

At 09:30 IST, the barometer index, the S&P BSE Sensex, slipped 184.24 points or 0.24% to 77,127.56. The Nifty 50 index lost 70.20 points or 0.30% to 23,311.40.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.23%, and the S&P BSE Small-Cap index declined 1.84%.

The market breadth was weak. On the BSE, 762 shares rose and 2,153 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,463.72 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,515.52 crore in the Indian equity market on 10 February 2025, provisional data showed.

Stocks in Spotlight:

Eicher Motors fell 6.05%. The companys consolidated net profit jumped 17.5% to Rs 1,170.50 crore in Q3 FY25 as compared with Rs 995.97 crore in Q3 FY24. Net sales increased 18.8% YoY to Rs 4,888.11 crore.

Apollo Hospitals Enterprise slipped 4.45%. The companys consolidated net profit jumped 51.8% to Rs 372.30 crore on 13.9% increase in net sales to Rs 5,526.90 crore in Q3 FY25 over Q3 FY24.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.33% to 6.802 as compared with previous close 6.822.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.0800, compared with its close of 87.4550 during the previous trading session.

MCX Gold futures for the 5 April 2025 settlement rose 0.24% to Rs 86,013.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 108.41.

The United States 10-year bond yield added 0.09% to 4.496.

In the commodities market, Brent crude for April 2025 settlement gained 20 cents or 0.26% to $76.07 a barrel.

Global Markets:

US Dow Jones index futures were down 106 points, suggesting a weak opening for US equities.

Most Asian indices traded lower on Tuesday as investors remained cautious over Donald Trumps latest tariff decisions. The U.S. President signed off on 25% tariffs on steel and aluminum imports, warning that more trade measures could follow.

On Monday, Trump formalized the tariffs through executive orders, stating that there would be no exceptions. While major steel exporters like Canada, Mexico, and Brazil had previously enjoyed some quota-based exemptions, those privileges are now revoked.

Trump hinted that tariffs on metals could go even higher and suggested he was considering duties on cars, semiconductors, and pharmaceuticals. He also proposed raising U.S. import tariffs to match the rates imposed by foreign countries on American goods.

In the U.S., the S&P 500 closed higher on Monday as a tech-driven rally, led by Nvidia, offset worries about Trumps tariff threats. Investors also looked ahead to key economic data and Federal Reserve Chairman Jerome Powells testimony later in the week.

The Dow Jones Industrial Average rose 0.4%, the S&P 500 index gained 0.7%, and the NASDAQ Composite climbed 1%.

Nvidia jumped 3%, leading the tech sector higher after analysts described the stock as a buying opportunity following its recent dip. The optimism comes ahead of the companys quarterly earnings report, set for release on February 26.

Fed Chair Jerome Powell is expected to face tough questions on the potential economic impact of tariffs when he delivers his semiannual monetary policy testimony before Congress on Tuesday and Wednesday.

Meanwhile, investors are closely watching U.S. consumer inflation data for January, scheduled for release on Wednesday. The report could influence the Feds stance on interest rates and shape market expectations in the coming weeks.

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