Sensex jumps 613 pts; Nifty above 22,250; metal shares shine

The headline equity benchmarks traded with major gains in mid-morning trade, buoyed by strong performance in Asian markets, after Nifty's longest losing streak in three decades on Tuesday. The decline was primarily driven by escalating global trade tensions, resulting from the imposition of tariffs by U.S. President Donald Trump on key trading partners. The Nifty traded above the 22,250 mark. Metal shares extended gains for the three consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 612.81 points or 0.84% to 73,608.05. The Nifty 50 index added 213.05 points or 0.96% to 22,295.10.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 2.14% and the S&P BSE Small-Cap index jumped 2.06%.

The market breadth was strong. On the BSE, 3,067 shares rose and 698 shares fell. A total of 114 shares were unchanged.

Economy:

The HSBC India Services PMI was revised to 59.0 in February 2025 from 61.6 (flash), up from January's 26-month low of 56.5, marking 43 straight months of expansion.

New business inflows remained strong, driving one of the sharpest job growth rates since records began in 2005.

Backlogs of work rose, with outstanding business increasing at the fastest pace since May 2024.

Input cost inflation eased to a four-month low, while output price inflation stayed above the long-term average as firms passed costs onto customers. However, business confidence slipped to a six-month low.

The HSBC India Composite PMI eased to 58.8 in February 2025 from 60.6 (flash) but stayed above January's 57.7, marking 43 consecutive months of expansion. Services activity accelerated, while manufacturing hit a 14-month low.

New orders rose strongly, led by services, and employment growth stayed near record levels.

Cost pressures were the softest since last October, with lower inflation in manufacturing than services. However, selling prices for goods and services saw the sharpest rise in three months.

Buzzing Index:

The Nifty Metal index added 2.75% to 8,577.65. The index jumped 4.36% in the three consecutive trading sessions.

Hindustan Copper (up 4.9%), Welspun Corp (up 4.35%), Adani Enterprises (up 3.66%), Jindal Stainless (up 3.66%) and Vedanta (up 3.53%), APL Apollo Tubes (up 3.4%), Tata Steel (up 3.26%), National Aluminium Company (up 2.65%), JSW Steel (up 2.45%) and Steel Authority of India (up 2.38%) added.

Stocks in Spotlight:

GE Vernova T&D India rallied 2.80% after the company announced that it has secured orders worth Rs 500 crore to supply and install transformers and reactors under the bulk procurement from Power Grid Corporation of India.

Marsons added 2.24% after the company announced that it has secured an order worth approximately Rs 9.49 crore from Inox Wind for the supply of a 160 MVA 220 kV class Extra High Voltage (EHV) Power Transformer.

Biocon rose 1.08% after the company said that Biocon Pharmahas received final approvals from the U.S. Food and Drug Administration (FDA) for its abbreviated new drug applications (ANDAs) for Lenalidomide Capsules and Dasatinib Tablets.

Welspun Specialty Solutions gained 1..70% after the company emerged as the L1 bidder by Bharat Heavy Electricals (BHEL, Trichy) for Rs 231.77 crore.

Global Markets:

US Dow Jones index futures were up 187 points, indicating a strong opening in the US stocks today.

Most Asian stocks traded higher on Wednesday as investors assessed China growth and inflation targets amid U.S. tariffs and escalating global trade tensions weighing down sentiment.

Trump imposed 25% tariffs on Mexico and Canada, along with 20% levies on China. In response, Canada announced immediate retaliatory measures, while Mexico also signaled its intention to respond. Chinas finance ministry has said it would impose 15% tariffs on several agricultural products, along with a 10% tariff on dairy.

Investors are also focused on Chinas Two Sessions, an annual parliamentary gathering, with the meeting of its top legislature, the National Peoples Congress, kickstarting Wednesday.

China on Wednesday set its GDP growth target for 2025 at around 5%. The country has also lowered its inflation expectations to around 2%.

Trumps 25% tariffs on goods from Mexico and Canada took effect Tuesday. The president also imposed an additional 10% duty on Chinese goods, bringing the total new tariffs on China to 20%.

China's Caixin services PMI came in at 51.4 in February, above expectations for a 50.8 print. The reading was higher than the 51.0 seen in January.

Australias gross domestic product rose 0.6% quarter-on-quarter, data from the Australian Bureau of Statistics showed on Wednesday. The print picked up from the 0.3% seen in the prior quarter. GDP grew 1.3% year-on-year, above expectations of 1.2% and higher than the 0.8% seen in the prior quarter.

United States equities fell on Tuesday, as losses in the Dow Jones Telecommunications, Dow Jones Financials and Dow Jones Consumer Goods sectors led shares lower. The Dow Jones Industrial Average fell 1.55% to hit a new 1-month low, while the S&P 500 index declined 1.22%, and the NASDAQ Composite index declined 0.35%.

Among financials, Morgan Stanley led losses with a 5.7% decline, while JPMorgan Chase & Co and Goldman Sachs fell nearly 4%, each. In automakers, Ford Motor Company slipped 2.9%, while Stellantis NV declined 4.4%, and General Motors Company lost 4.6%. NVIDIAs stock rose 1.6%, after entering a bear market territory in the last session with an over 8% fall.

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