Markets Today: Sensex P/E below Dow's; FIIs; China CPI; PDP Shipping IPO

Stock Markets Today, March 10, 2025: Due to lack of major domestic triggers, Indian benchmark indices, Nifty50 and Sensex, are likely to react to mixed global cues on the first trading day of the week i.e. Monday.

 

At 6:34 AM, GIFT Nifty Futures were trading 15 points lower at 22,635, hinting at a flat to negative start. 

 

In the previous session (March 7), Sensex settled at 74,332.58, down 7.51 points or 0.01 per cent. Nifty50, on the other hand, settled 7.80 points or 0.03 per cent higher at 22,552.50. 

 

Domestic cues  US President Donald Trump on Friday said that India has agreed to "cut their tariffs way down," signaling a potential shift in trade relations between the two countries. READ MORE 

 

Since October 2024, the Indian markets have seen a steady decline, with experts like Louis-Vincent Gave of Gavekal Research predicting that it may take six to eight months for sentiment and valuations to stabilise. 

The recent selloff on Dalal Street has brought India’s valuation premium over the US equity market to an end. The Sensex’s price-to-earnings (P/E) ratio has dropped below that of the Dow Jones for the first time since 2009. The Sensex is now trading at 21.8x P/E, down from 23.8x last March.

 

Meanwhile, mutual fund investors have shown a growing preference for long-term holdings, with the share of assets held for over five years increasing from 6.5 per cent in 2019 to 15.7 per cent in 2024.

 

Also Read: India's M&A market expected to stay resilient despite market correction

 

India's consumer inflation is expected to have cooled further in February, possibly falling below the RBI’s 4 per cent target. This could pave the way for a potential repo rate cut by the RBI in its April meeting.

 

Other triggers

 

FII, DII

 

FIIs net sold shares worth Rs 2,035.10 crore, while DIIs net bought shares worth Rs 2,320.36 crore, on March 7.

 

Also Read: The Magnificent 7: FPIs' wild ride through selloff in seven sectors

 

IPO market

 

PDP Shipping & Projects IPO (SME) will open for subscription.

 

Global cues

 

Asia-Pacific markets were trading mixed on Monday following a volatile trading week across the globe, given major fluctuations in US stocks since the start of the month. This is mainly due to ongoing uncertainty surrounding US President Donald Trump’s tariff policies and their potential effects on the country’s economic growth and inflation.

 

Nikkei rose 0.1 per cent, while the Topix index was flat with a positive bias. Cash earnings in Japan grew 2.8 per cent year-on-year (Y-o-Y) in January, a slowdown compared to December’s 4.4 per cent increase. 

 

That apart, ASX 200 was up 0.2 per cent, while Kospi gained 0.3 per cent, after opening lower initially.

 

Over the weekend, China reported that its consumer inflation dropped below zero for the first time in 13 months. The consumer price index fell 0.7 per cent in February from the previous year, following a 0.5 per cent increase in January. The drop was attributed to seasonal distortions and deflationary pressures. 

 

Additionally, China announced retaliatory tariffs on Canadian agricultural goods in response to Ottawa's import duties on Chinese electric vehicles, steel, and aluminum products last year. The new tariffs include a 100 per cent levy on Canadian rapeseed oil, oil cakes, and peas, as well as a 25 per cent tariff on aquatic products and pork from Canada.

 

In the US, the major stock indices closed higher on Friday after a volatile trading session. The S&P 500 gained 0.55 per cent, the Nasdaq Composite rose 0.7 per cent, and the Dow Jones added 0.52 per cent. Despite the gains on Friday, the S&P 500 posted its worst weekly performance in several months due to concerns over the trade policy turbulence.

 

Commodity market 

 

Gold prices eased on Friday but were still set for a weekly gain, supported by safe-haven demand and a weaker-than-expected US jobs report for February, hinting at potential Fed rate cuts. Spot gold dropped 0.1 per cent to $2,906.04 an ounce, and US gold futures fell 0.4 per cent to $2,914.10. 

 

Oil prices rose on Friday but retreated from highs after President Trump hinted at sanctions on Russia if it fails to reach a ceasefire in Ukraine. Brent crude futures increased 1.5 per cent to $70.50 per barrel, while US WTI futures gained 1.02 per cent to $67.04.

 

Here's how analysts are assessing today's (March 10) trading session:

 

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

 

22,720 and 22,800 levels will act as stiff resistance for the index. On the downside, 22,240 will act as immediate support. Though the overall market suggests strength, traders should wait for a move above 22,800. Until then, buy near support and take profits around resistance.

 

Amol Athawale, VP of technical research at Kotak Securities

 

We are of the view that 22,400/74,000 and 22,300/73,700 would be key support zones for positional traders. If the market succeeds in trading above these levels, it could bounce back to the 20-day SMA or 22,750/75,200. Further upside may continue, potentially lifting the indices up to 22,900/75,700. On the flip side, if the market falls below 22,300/73,700, the sentiment could change, and traders may prefer to exit their long positions.