Stock Market News:

The direction of the local stock markets this week will be influenced by developments related to tariffs in the U.S., global trends, and the trading activity of foreign investors, according to experts. They have expressed concerns that investor sentiment may remain weak in the coming days due to worries over trade tariffs and the withdrawal of foreign funds.

February Was a Tough Month

In February alone, the Nifty index of the National Stock Exchange fell by 1,383.7 points or 5.88%. Similarly, the BSE Sensex, comprising 30 shares, declined by 4,302.47 points or 5.55% during this period.

On September 27, 2024, the Sensex had reached its all-time high of 85,978.25 points. Since then, it has fallen by 12,780.15 points or 14.86%. Likewise, the Nifty, which hit its record high of 26,277.35 points on the same date, has dropped by 4,152.65 points or 15.80%.

Market Expected to Remain Weak

Vinod Nair, Head of Research at Geojit Financial Services, stated, “Investors will closely watch key developments, including tariff policies and unemployment claims. The market is expected to remain weak in the near future. However, a gradual recovery is anticipated in the first quarter of the next financial year as corporate earnings improve and global trade uncertainties subside.”

On the macroeconomic front, investors will keep an eye on HSBC’s manufacturing and services PMI data, which is set to be released this week.

U.S. Tariffs Causing Tension

Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services Ltd., said, “We believe the market will trade with a weak trend due to a lack of domestic indicators and weak global cues.”

India’s economy grew at a rate of 6.2% in the December quarter, recovering from a seven-quarter low on a sequential basis. However, this growth rate was lower than the same quarter of the previous financial year. The GDP growth data comes at a time when the U.S. tariff war remains a significant challenge.

According to data released by the Ministry of Statistics on Friday, India’s Gross Domestic Product (GDP) grew at a rate of 6.2% in the October-December quarter, up from the revised 5.6% growth in the July-September quarter. However, it fell short of the Reserve Bank of India’s (RBI) estimate of 6.8%.

Market Performance Last Week

Last week, the BSE Sensex dropped by 2,112.96 points or 2.80%, while the NSE Nifty declined by 671.2 points or 2.94%.

Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd., commented, “Uncertainty is often more important than actual developments, and the market is currently grappling with concerns over a potential trade war. Additionally, selling pressure from Foreign Institutional Investors (FIIs) continues to mount.”

Positive News on GST Front

In February, total Goods and Services Tax (GST) collections rose by 9.1% to approximately ₹1.84 lakh crore, driven by increased domestic consumption, signaling a potential economic recovery.

According to official data released on Saturday, gross GST revenue included ₹35,204 crore from Central GST, ₹43,704 crore from State GST, ₹90,870 crore from Integrated GST, and ₹13,868 crore from compensation cess.

(Disclaimer: This is not investment advice. The stock market is subject to risks. Investors should make informed decisions before investing. The opinions expressed by experts are their own. Live Hindustan does not recommend buying or selling stocks based on this information.)