Indices trade lower; PSU bank shares drop

The key equity benchmarks traded with moderate losses in the early afternoon trade, driven by concerns over potential U.S. retaliatory tariffs and ongoing foreign selling, dampening risk sentiment. The Nifty traded at the 22,800 level. PSU Bank shares declined after rising for two consecutive trading sessions.

At 12:25 IST, the barometer index, the S&P BSE Sensex, slipped 399.03 points or 0.53% to 75,333.94. The Nifty 50 index declined 112.85 points or 0.49% to 22,800.30.

In the broader market, the S&P BSE Mid-Cap index declined 0.87% and the S&P BSE Small-Cap index shed 0.20%.

The market breadth was negative. On the BSE, 1,745 shares rose and 2,015 shares fell. A total of 173 shares were unchanged.

Economy:

The Flash India Manufacturing PMI for February registered at 60.6, up from a final reading of 57.7 in January. While most of the sub-components of the HSBC Flash India Manufacturing PMI retreated compared to January, the index decreased from 57.7 in January to 57.1 in February. Despite this dip, the latest reading remains well above the long-term average of 54.1, signaling a robust improvement in the sector's overall health.

Pranjul Bhandari, Chief India Economist at HSBC, said, Rapid restocking around the world continues to lift new export orders. A healthy acceleration in orders and output is keeping firms optimistic about the future. Input prices eased while output prices rose at a faster pace, leading to improved margins, especially for goods producers.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.05% to 14.69. The Nifty 27 February 2025 futures were trading at 22,838.25, at a premium of 37.95 points as compared with the spot at 22,800.30.

The Nifty option chain for the 27 February 2025 expiry showed a maximum call OI of 131.2 lakh contracts at the 23,000 strike price. Maximum put OI of 85.1 lakh contracts was seen at 22,000 strike price.

Buzzing Index:

The Nifty PSU bank index declined 1.10% to 5,985.40. The index jumped 3.05% in the past two trading sessions.

Bank of India (down 3.21%), Bank of Baroda (down 1.41%), Indian Bank (down 1.35%), Union Bank of India (down 1.23%) and Punjab National Bank (down 1.12%), UCO Bank (down 0.97%), Indian Overseas Bank (down 0.93%), Canara Bank (down 0.83%), Bank of Maharashtra (down 0.64%) and Central Bank of India (down 0.44%) declined.

Stocks in Spotlight:

Samvardhana Motherson International (SAMIL) declined 3.71%. The company has incorporated a wholly owned subsidiary (WOS), Motherson Treasury Strategy (MT), within the jurisdiction of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates.

Kamat Hotels (India) rose 0.54%. The company has signed a management agreement for the operation and management of the Orchid Hotel located in Mandavi, Kutch District, Gujarat.

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