Daijiworld Media Network - Mumbai
Mumbai, Feb 23: Domestic equity markets began the week on a strong note on Monday, with benchmark indices posting notable gains in early trade.
The BSE benchmark S&P BSE SENSEX rallied over 500 points, while the National Stock Exchange’s NIFTY 50 was comfortably trading above the 25,750 mark.
However, analysts cautioned that domestic macroeconomic data, the monthly F&O expiry, and global developments following US President Donald Trump’s tariff hike after a recent court verdict could keep markets volatile through the week.
Trump on Friday imposed a 10% tariff on several countries, including India, for 150 days following a ruling by the Supreme Court of the United States. A day later, the tariff was reportedly raised to 15%, fuelling concerns of renewed trade tensions and potential global spillovers.
In a setback to Trump’s economic agenda, the Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 exceeded presidential authority, terming the sweeping levies illegal.
Market participants are also expected to track foreign investor activity, developments between the US and Iran, crude oil price movements and global monetary policy signals for further direction.
Buzzing stocks
Shares of IDFC First Bank plunged 20% to ?66.80 apiece on the NSE after the lender disclosed a ?590 crore fraud allegedly committed by its employees and others in accounts linked to the Haryana government. The bank said it has informed the regulator and lodged a police complaint.
Agrochemical major UPL Limited saw its shares fall over 8% after announcing a restructuring plan to integrate its Indian and international crop protection businesses into a single entity. The board approved a composite scheme of arrangement involving UPL Sustainable Agri Solutions Ltd, UPL Global Sustainable Agri Solutions Ltd and UPL Crop Protection Holdings Ltd, aimed at simplifying the group structure and creating a focused global platform.
Sectoral watch
On the BSE, PSU bank stocks led the gains, with the BSE PSU Bank index rising 1.5% to 5,507.38. The Nifty PSU Bank index on the NSE also advanced 1.36%. Auto and metal stocks traded with healthy gains.
In contrast, IT stocks remained under pressure, with the Nifty IT index slipping 0.41% to 31,872.35.
Broader markets were mixed. The BSE 150 MidCap Index was up 0.23% at 16,122.85, while the BSE SmallCap Select Index gained 0.92% to 7,848.09.