Equity Markets:

 

Overall Market Performance:

1. BSE Sensex (-0.68%) and Nifty 50 (-0.69%) declined after gains in the previous week.

2. Mid-cap and small-cap segments also closed in the red.

 

Sectoral Performance:

 

1. BSE IT (-4.84%):  Declined due to concerns over a U.S. economic slowdown, higher tariffs, and restrictive trade policies. Major brokerage firms downgraded IT stocks due to uncertainty in U.S. clients’ discretionary spending.

2. BSE Consumer Durables (-2.00%):  Declined following weaker industrial output data. YoY output for consumer durables fell to 7.2% (Jan 2025) from 8.3% (Dec 2024) as per Ministry of Statistics data.

 

 

Global Market Developments:

 

Market volatility driven by mixed economic data, corporate earnings, and trade tensions.

 

1. US Markets:  S&P 500 (-4.12%), Dow Jones (-3.81%), Nasdaq 100 (-4.97%) declined sharply.

 

 

2. Asian Markets:  Japan’s Nikkei (-1.60%) fell, while Kospi (+0.65%), Hang Seng (+0.60%), and Shanghai Composite (+0.90%) showed marginal gains.

 

 

3. European Markets:  FTSE (-2.13%) declined significantly due to global trade concerns.

 

 

 

Debt Markets

 

1. Bond Yields Increased - Driven by concerns over inflationary effects of escalating global trade tensions.

 

2. Impact of U.S. Retail Inflation - Optimism from lower-than-expected U.S. inflation was overshadowed by trade concerns.

3. Domestic Factors - Softer-than-expected domestic inflation and RBI’s debt purchase helped limit losses.
 

4. Yield Movement - 10-year benchmark bond (6.79% GS 2034) yield rose 1 bps to 6.70% (from 6.69% in the previous week).

Macroeconomic Updates:

1. Industrial Production Growth: Index of Industrial Production (IIP) rose 5.0% YoY in Jan 2025 (vs. 3.5% in Dec 2024).

2. Inflation Trends:

• Consumer Price Index (CPI) Inflation eased to 3.61% YoY in Feb 2025 (lowest in 7 months), down from 4.26% in Jan 2025.
• Consumer Food Price Inflation (CFPI) declined to 3.75% in Feb 2025 (from 5.97% in Jan 2025), driven by lower food prices.

 

Commodities Update:

 

Gold - Gold prices reached a record high, with spot gold hitting $2,993.80 per ounce on March 14, 2025. 

Key Drivers: 

• Safe-Haven Demand: Ongoing global trade tensions and economic uncertainties increased investor interest in gold as a safe-haven asset. 
• Inflation Concerns: Rising fears of inflation contributed to the metal's appeal. 
• Currency Movements: A weakening U.S. dollar made gold more attractive to holders of other currencies. 

 

Silver - Silver prices remained stable, with spot silver trading at $32.44 per ounce on March 10, 2025. 
 

Key Drivers: 

Industrial Demand: Concerns over global trade tensions potentially impacting industrial activity weighed on silver prices. 

 

Crude Oil - Crude oil prices rebounded, with West Texas Intermediate (WTI) crude closing at $67.18 per barrel on March 14, 2025, marking a slight increase from the previous week's close of $67.04. 

 

 

 

Best Regards
 

Alpha Research

 

Disclaimer:  The perspectives provided reflect our expectations of the economy, market, and investments, which may or may not materialize. Investors are encouraged to conduct their own due diligence before investing.