Sensex tumbles 332 pts; Nifty tanks below 22,050; broader mkt underperforms

The headline equity benchmarks traded with significant losses in mid-morning trade, weighed down by several factors contributing to the market downturn, including foreign investor selling, global economic concerns, and a correction in small-cap and mid-cap stocks.

The Nifty tanked below the 22,050 mark. Oil & Gas shares extended losses for the sixth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, tumbled 332.03 points, or 0.45%, to 72,858.09. The Nifty 50 index fell 92.70 points, or 0.42%, to 22,029.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 1.75% and the S&P BSE Small-Cap index tanked 2.76%.

The market breadth was weak. On the BSE, 740 shares rose and 3,151 shares fell. A total of 160 shares were unchanged.

FIR against ex-SEBI chief:

A special court has directed the Anti-Corruption Bureau (ACB) to register a first information report (FIR) against former SEBI chairperson Madhabi Puri Buch, the whole-time members of the market regulator, and two BSE officials on charges of alleged stock market fraud, regulatory violations, and corruption linked to the listing of a company in 1994. The Securities and Exchange Board of India (SEBI) said it would take legal steps to challenge the order. The order comes just two days after Buch completed her tenure as SEBI chief.

Economy:

Indias economic growth improved to 6.2% in the third quarter of FY25, up from an initially reported 5.4% in the previous quarter. Real GDP has been estimated to grow by 6.5% in FY 202425. Nominal GDP is expected to witness a growth rate of 9.9% in FY 202425. Both the growth rates are revised upward from their respective First Advance Estimates.

Real GDP is estimated to grow by 6.2% in Q3 of FY 2024-25. Growth rate in nominal GDP for Q3 of FY 2024-25 has been estimated at 9.9%. The growth rate of real GDP for Q2 of the financial year 2024-25 has been revised upward to 5.6%.

India’s core sector recorded a growth of 4.6% (provisional) in January 2025, official data showed today. The final core growth for October 2024 increased by 3.8%, with the cumulative growth rate during April-January 2024-25 at 4.4% (provisional) over the comparable period of last year.

Meanwhile, the seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) registered 56.3 in February, down from 57.7 in January but still indicative of a further robust improvement in the health of the sector. Business conditions improved across all three monitored sub-sectors: consumer, intermediate, and investment goods.

The Indian manufacturing sector’s strong start to 2025 continued in February. Despite slowing to the weakest since December 2023, rates of expansion in output and sales remained elevated in the context of the survey’s 20-year history.

Buzzing Index:

The Nifty Oil & Gas index lost 2.04% to 9,395.20. The index declined 7.72% in the past six consecutive trading sessions.

Aegis Logistics (down 3.22%), Adani Total Gas (down 3.22%), Petronet LNG (down 3.18%), Indraprastha Gas (down 3.11%) and Reliance Industries (down 3.01%), Gujarat State Petronet (down 2.11%), Oil & Natural Gas Corpn (down 1.76%), Gujarat Gas (down 1.22%), GAIL (India) (down 1.12%) and Mahanagar Gas (down 0.87%) declined.

On the other hand, Castrol India (up 0.29%), Bharat Petroleum Corporation (up 0.13%) added.

Stocks in Spotlight:

TVS Motor Company rose 1.59% after the companys total sales jumped 10% to 403,976 units in February 2025 as against 368,424 units in February 2024.

Rpp Infra Projects rose 1.75% after the company received an order worth Rs 108.80 crore from the superintending engineer, State Industries Promotion Corporation of Tamil Nadu, for infrastructure work at the Mega Leather Park in Ranipet.

Steel Strips Wheels (SSWL) declined 1.38%. The company reported a net turnover of Rs 407.74 crore for February 2025, registering 18.88% YoY growth compared to Rs 342.98 crore posted in February 2024.

Transformers and Rectifiers (India) (TRIL) tumbled 4.24%. The company said that it has bagged orders worth Rs 350 crore from the Adani Group, the Al Sabha Group (Iraq), and Powerlink Queensland (Australia).

Global Markets:

Most Asian stocks traded higher on Monday as investors awaited clarity on U.S. President Donald Trump’s plans to impose tariffs this week on key trading partners.

U.S. President Donald Trump announced via social media that five digital assetsBitcoin, Ether, XRP, Solana, and Cardanoare set to be part of this reserve, fueling a surge in crypto prices.

Australias S&P Global Manufacturing purchasing manager’s index reading for February came in at 50.4, similar to the previous month’s 50.6 reading.

Meanwhile, Chinas Caixin Manufacturing PMI climbed to 50.8 in February, beating expectations of 50.4 and rising from Januarys 50.1. This marks the indexs largest jump since November and its fifth consecutive month of expansion, signaling steady economic momentum.

Geopolitical tensions remained in focus as European leaders drafted a Ukraine peace plan for the U.S., following a tense Oval Office exchange between Trump and Ukrainian President Volodymyr Zelenskyy.

Concerns about the U.S. economy deepened with a string of weak data points, pushing the Atlanta Feds GDPNow tracker to an annualized -1.5% from +2.3%, fueling recession fears.

Adding to market jitters, U.S. Commerce Secretary Howard Lutnick confirmed that tariffs on imports from Mexico and Canada will take effect Tuesday, March 4, 2025. While an initial 25% tariff was proposed, Lutnick indicated that Trump will finalize the exact rates on Tuesdayalongside a fresh 10% tariff on Chinese imports.

With the January U.S. payrolls report set for release Friday, investors are watching closely. A weaker-than-expected job number could boost expectations that the Federal Reserve will slash interest rates three times this year.

Despite a brief stumble, Wall Street ended Friday on a high note. The S&P 500 jumped 1.59%, the Nasdaq surged 1.63%, and the Dow Jones gained 1.4% as traders brushed off geopolitical anxieties following the fiery Trump-Zelenskyy meeting.

In individual stocks, Dell tumbled over 4% after warning of a decline in adjusted gross margin for its 2026 fiscal year.

On the economic front, the PCE price indexthe Feds preferred inflation gaugerose 0.3% in January, matching Decembers pace. Year-over-year, inflation eased slightly to 2.5% from 2.6%. Core inflation (excluding food and energy) also increased 0.3% month-over-month, with a year-on-year dip to 2.6% from Decembers 2.9%.

However, despite this moderation in inflation, consumer sentiment declined by 0.2% in Januaryits first drop in nearly two years, raising concerns about spending trends ahead.