Markets Today: February Services PMI; Trump tariffs; FIIs; Shreenath IPO

Stock Markets Today: As of 6:31 AM, GIFT Nifty Futures were down 54 points at 22,137, hinting at a negative start.

Stock Markets Today, March 5, 2025: February Services PMI, Trump tariffs moves, FIIs, along with mixed global cues, may influence the benchmarks, Sensex and Nifty50, today.

 

As of 6:31 AM, GIFT Nifty Futures were down 54 points at 22,137, hinting at a negative start.  

In the previous session, Sensex settled at 72,989.93, down 96.01 points or 0.13 per cent.  Similarly, the Nifty50 ended at 22,082.65, down 36.65 points or 0.17 per cent.

 

Also Read: Nifty 50 hits record losing streak, longest since 1996 inception

 

Global cues

 

Asia-Pacific markets were trading mixed on Wednesday as concerns linger over US President Donald Trump’s tariffs and the growing global trade tensions. 

Commerce Secretary Howard Lutnick stated on Tuesday that President Donald Trump will ‘probably’ announce tariff compromise agreements with Canada and Mexico soon. These potential deals are expected to involve reducing, at least partially, the new 25 per cent tariffs on imports from both countries.

 

 

ASX 200 dropped 1.11 per cent, despite the country’s economy expanding 1.3 per cent year-on-year in the fourth quarter, surpassing the expected 1.2 per cent growth. The Nikkei was down 0.13 per cent, while the Topix was flat with a negative bias. Kospi, however, gained 0.57  per cent.

 

Investors are also closely watching the developments of China’s ‘Two Sessions,’ the annual parliamentary gathering that began on Tuesday. The National People's Congress (NPC), China’s top legislature, convened on Wednesday, with the country setting a GDP growth target of around 5 per cent for 2025 amid ongoing trade tensions with the US

 

On the trade front, President Trump’s 25 per cent tariffs on imports from Mexico and Canada went into effect on Tuesday, while an additional 10 per cent duty was imposed on Chinese goods, raising the total new tariffs on China to 20 per cent.

 

In response, Beijing retaliated with tariffs of up to 15 per cent on a wide range of US farm exports and expanded export controls and other restrictions, adding around two dozen more US companies to the list.

 

Mexican President Claudia Sheinbaum stated that Mexico would retaliate with its own tariffs, though she mentioned that the targeted products would be announced on Sunday. 

 

In the US stock market, the Dow Jones fell 1.55 per cent. The S&P 500 dropped 1.22 per cent, and Nasdaq lost 0.35 per cent.

 

Investors now await US February Services PMI data, coupled with January factory orders and February ISM services employment. 

 

Domestic cues

 

The Indian equity market has seen a major decline, with the number of companies valued at over $1 billion dropping nearly 20 per cent in the past five months. 

 

In a regulatory change, the NSE will shift the expiry day for Nifty derivative contracts from Thursday to Monday, starting April 4. 

 

Meanwhile, the Bombay High Court temporarily stayed a special court order that directed the Anti-Corruption Bureau (ACB) to file an FIR against Madhabi Puri Buch, former chairperson of Sebi, and several other officials over alleged stock market fraud and violations.

 

In the multi-asset allocation fund (MAAF) category, fund houses like WhiteOak Capital, Edelweiss, and Mahindra Manulife, which opted for a more flexible, debt-oriented strategy, are benefiting during the current market correction.

 

Also, economists expect the Reserve Bank of India’s monetary policy committee to cut the policy repo rate again in April to support growth, with inflation trending downward.

 

India’s customs duty collection target for FY26, which is set to grow by only 2.1 per cent to Rs 2.4 trillion, may face increased pressure as India negotiates trade deals with developed economies like the US, EU, and UK.

Other triggers

 

Investors now await India services PMI data, which is scheduled to be released later in the day. 

 

FII, DII

 

FIIs net sold shares worth Rs 3,405.82 crore, while DIIs net bought shares worth Rs 4,851.43 core, on March 4.

 

IPO market

 

Shreenath Paper IPO (SME) will list on the bourses, while Balaji Phosphates IPO (SME) will see its allotment. Also, NAPS Global IPO (SME) will enter Day 2.

 

Commodity market 

 

Gold prices rose on Tuesday, boosted by a weaker dollar and increased demand for safe-haven assets amid the intensifying trade conflict following Trump’s new tariffs. Spot gold was up 0.7 per cent to $2,914 per ounce. US gold futures increased 0.8 per cent to $2,925.1.

 

In contrast, oil prices fell to multi-month lows on Tuesday. The decline came after reports that OPEC+ plans to increase production in April, along with additional pressure from US tariffs on Canada, Mexico, and China, and Beijing’s retaliatory measures. Brent crude futures closed 0.8 per cent lower at $71.04 per barrel, the lowest since September. US WTI crude dropped 0.2 per cent to $68.26 per barrel.

 

Here's how analysts are assessing today's (March 05) trading session:

 

Rupak De, senior technical analyst at LKP Securities

 

In the short-term, we might witness a recovery. However, a decisive fall below 21,800 could change the current equation.

 

Hrishikesh Yedve, AVP of technical and derivatives research at Asit C Mehta Investment

 

Till index holds the support of 21,800, a short-term pullback towards 22,300-22,500 could be possible. On the higher side, 22,500 will act as immediate resistance for the index. Thus, traders are advised to use this pullback for profit booking.