Markets Today: February Mfg PMI, Q3 GDP, FIIs, Trump tariffs, Beezaasan IPO
As of 6:40 AM, GIFT Nifty Futures were up 79 points at 22,359, hinting at a higher start
 "Markets Today: February Mfg PMI, Q3 GDP, FIIs, Trump tariffs, Beezaasan IPO")
Stock Markets Today, March 03, 2025: February manufacturing PMI, Q3 GDP data, FIIs, Trump tariffs, along with upbeat global cues, may drive the mood of the benchmarks, Sensex and Nifty50, today.
As of 6:40 AM, GIFT Nifty Futures were up 79 points at 22,359, hinting at a higher start.
Meanwhile, in the previous session, Sensex ended with 1,414 points or 1.9 per cent lower at 73,198, while Nifty50 closed 1.9 per cent or 420 points lower at 22,125.
Global cues
Asia-Pacific markets rose on Monday as investors awaited more clarity on the US President Donald Trump’s tariff plans set to be announced this week. According to reports, US Commerce Secretary Howard Lutnick on Sunday said that the tariffs on Mexico and Canada, which are scheduled to begin Tuesday, remain ‘fluid,’ meaning they could be lower than the proposed 25 per cent. However, he confirmed that the 10 per cent additional tariff on China imports is finalised.
Meanwhile, China’s Ministry of Commerce expressed strong opposition on Friday to US President Donald Trump’s latest threat to increase tariffs on Chinese goods, warning of possible retaliation if needed.
A spokesperson for the Ministry stated, “If the US insists on pursuing its own path, China will take all necessary countermeasures to protect its legitimate rights and interests.” The statement, translated by CNBC, continued, “We urge the US not to repeat its mistakes and to return to the right approach of resolving conflicts through dialogue on an equal footing.”
Last checked, Nikkei was trading 0.67 per cent higher, while the broader Topix index rose 0.75 per cent. ASX 200 was up 0.22 per cent.
China’s Caixin/S&P Global manufacturing PMI for February, expected later in the day, is forecasted to show a reading of 50.3, up from 50.1 in January.
South Korean markets were closed for a public holiday.
In the US, the S&P 500 rose 1.59 per cent, while the Dow Jones gained 1.39 per cent. The Nasdaq climbed 1.63 per cent.
The market saw a brief dip amid rising geopolitical tensions between President Trump and Ukraine's President Zelenskyy over their differing views on resolving the Russia-Ukraine conflict. However, stocks rallied towards the close, supported by index rebalancing and other technical buying factors.
Domestic cues
India’s economic growth picked up to 6.2 per cent in the December quarter of FY25, a recovery from the 5.6 per cent growth in the previous quarter, reversing two quarters of slowdown. However, revisions to past data have left economists confused. The Ministry of Statistics and Programme Implementation (Mospi) forecasts a 6.5 per cent growth for FY25, slightly higher than the 6.4 per cent projected in January.
Foreign portfolio investors (FPIs) have been largely sidelined amid market corrections. Jimeet Modi, CEO of Samco Group, noted that FPIs are likely to stay away until Indian equities become more attractive.
Moreover, the Indian equities have seen a sharp selloff, bringing valuations to their lowest in over eight years. The BSE Sensex’s trailing price-to-earnings (P/E) ratio dropped to 20.4x on Friday, marking its lowest since May 2020 — excluding during the pandemic-induced sell-off — when it touched 19.5x due to concerns over the economy and corporate earnings.
The plan to reintroduce a combo product of insurance and mutual funds faces resistance, with industry players concerned about its complexity and operational issues.
Meanwhile, the mutual fund industry continues to attract new investors, adding 800,000 new investors per month between November 2024 and January 2025, bringing the total to 53.3 million.
Additionally, the MF industry is aiming for $33 trillion in assets and 260 million investors by 2047, in line with the government’s Viksit Bharat initiative.
Other triggers
Investors now await India manufacturing PMI data, which is scheduled to be released later in the day.
FII, DII
FIIs net sold shares worth Rs 11,639.02 crore, while DIIs net bought shares worth Rs 12,308.63 core, on February 28.
IPO market
Beezaasan Explotech IPO (SME) will list on the bourses. Balaji Phosphates IPO (SME) will enter Day 2, while Shreenath Papers IPO (SME) is likely to see its allotment.
Commodity market
Gold prices dropped over 1 per cent on Friday as the US dollar remained near two-week highs following inflation data that met expectations. This suggests the Fed may take a more cautious approach to further rate cuts. Spot gold decreased 1 per cent, settling at $2,846.96 per ounce. US gold futures dropped 1.3 per cent, closing at $2,858.90.
Oil prices also declined by about 1 per cent on Friday, marking their first monthly drop since November. Concerns about new tariffs from Washington, Iraq's decision to resume oil exports from the Kurdistan region, and ongoing uncertainty over OPEC’s production plans for April, as well as discussions around the Russia-Ukraine conflict, dampened investor sentiment. The more actively traded May Brent crude futures fell 1.16 per cent, closing at $73.18 per barrel, while US WTI crude futures dropped 0.84 per cent to settle at $69.76 per barrel.
Here's how analysts are assessing today's (March 03) trading session:
Rupak De, senior technical analyst at LKP Securities
In the near-term, Nifty is expected to find support around 21,800-22,000. A sustained move above 21,800 could lead to a significant recovery, while failure to hold this level may trigger another sharp decline.
Amol Athawale, VP of technical research at Kotak Securities
For short-term traders, 22,200/73500 would be the key level to watch out for. Below this, the market could slip to 22,000-21,800/73000-72500. On the flip side, if the index sustains above 22,200/73500, sentiment could change. Above 22,200/73500, we may see a quick pullback rally up to 22300/74000, with further upside potential that could lift the market up to 22500/74500.