The domestic stock market firmly opened in the green mark on the first trading session of the week i.e. Monday (March 3). The domestic stock market can also be improved by getting positive signs from global markets. The BSE Sensex with thirty -share opened today at 73,427 points by more than 200 points. It closed at 73,198 points on Friday. At 9:20 am, the Sensex was trading at 73,627.41 with a gain of 429.31 points or 0.59%. Meanwhile, February manufacturing PMI figures, third -quarter GDP figures and foreign investors (FIIs) will decide the market direction. Investors are also eyeing the new tariff to be announced by US President Donald Trump this week. Earlier in Friday session, the Sensex fell 1,414 points or 1.9% to close at 73,198, while the Nifty fell 420 points or 1.9% to close at 22,125.
Signs from global market
The Asia-Pacific stock markets rose on Monday as investors are waiting for clarity on tariff schemes to be announced by US President Trump this week. According to reports, US Commerce Secretary Howard Lutnik said on Sunday that the fees levied on Mexico and Canada are still ‘variable’, ie they could be less than the proposed 25 percent. However, he confirmed that 10 percent additional duty on imported products from China has been finalized.
Meanwhile, China’s Ministry of Commerce strongly objected to President Trump’s new tariff proposals and warned the US to retaliate. The ministry spokesman said that if the US is adamant on its insistence, China will take all necessary steps to protect its legitimate interests. He also said that America should not repeat the previous mistakes and adopt the right path to find solutions through dialogue on the basis of equality.
Talking about the market performance, Japan’s Nikkei index rose 0.67 percent, while the broad topics index saw a growth of 0.75 percent. Australia’s ASX 200 index was also trading above 0.22 percent. However, South Korean markets remained closed due to public holiday.
The US markets also saw strength, 1.59 percent in S&P 500, 1.39 percent in Dow Jones and 1.63 percent in Nasdaq. Although the market declined slightly during the day due to increasing tension between the US and Ukraine over the Russia-Ukraine crisis, the market eventually closed firmly due to index reinforcement and technical purchases. The market is now eyeing China’s Caxin/S&P Global Manufacturing PMI figures, which will be released later. This data is expected to be 50.3, which indicates a slight increase compared to the 50.1 of January.
Domestic signal
India’s economic growth rate increased to 6.2% in the December quarter of FY 2024-25, which shows a sharp improvement with an increase of 5.6% in the previous quarter. Earlier, two quarters were seen to decline. However, economists are confused with the amendment of previous quarters. The Ministry of Statistics and Program Implementation (MOSPI) has estimated a 6.5% increase for the entire financial year 2024-25, which is slightly higher than the estimated 6.4% in January.
FPI still cautious
Foreign portfolio investors (FPIs) are currently on the shore due to the ongoing improvement in the Indian market. According to SAMCO Group CEO Jimit Modi, FPI investors will not be active in the Indian market until the evaluation reaches an attractive level.
Heavy selling in the stock market
The Indian stock market has recently seen heavy selling, which has reached the lowest level of eight years. The rear price of BSE Sensex fell to 20.4 times on Friday, the lowest level since May 2020. Earlier, it reached 19.5 times due to the decline in the market during Covid-19. The main reason for investors’ concern is the economic situation and uncertainty on corporate income.
