Closing Bell: Sensex, Nifty end flat amid volatility; Bharti Airtel, M&M top performer

Indian equity indices ended on a flat note in the volatile session on February 25. At close, the Sensex was up 147.71 points or 0.20 percent at 74,602.12, and the Nifty was down 5.80 points or 0.03 percent at 22,547.55.

The index remained mostly muted, except for a small correction towards the close. Sentiment continues to favor the bears as the index sustained below the 21EMA on the hourly chart throughout the day, indicating selling on every rise. On the lower end, support is placed at 22,500, below which sentiment may worsen further. On the higher end, resistance is seen at 22,650 and 22,750-22,800. A rise towards resistance is likely to attract selling pressure.

The domestic market experienced a range-bound trading session in anticipation of key economic data releases this week, alongside the monthly expiry. Concerns over high valuations led to continued declines in small and mid-cap stocks. Market sentiment is expected to remain cautious in the near term due to persistent pressure on the INR, ongoing FII outflows, and tariff-related developments.

Key macroeconomic indicators, including the US Core PCE and GDP data for both the US and India, will be instrumental in shaping expectations for the central bank's future monetary policy.

The Nifty began on a negative note, saw consolidation in a narrow range, and closed on flat to negative note at 22,548. The volatility index, India VIX, cooled off by 5.03% to 13.72, indicating a decline in market volatility.

Technically, on the daily chart, Nifty has formed an inverted hammer candlestick pattern, indicating buying interest around 23,500 levels. As long as the index respects 23,500 levels, a pullback rally towards 22,700-22,800 could be possible. On the higher side, 22,700-22,800 will serve as a solid resistance zone. Sustenance below 22,500 levels could trigger fresh selling pressure. Traders should monitor these levels for potential trading opportunities.

Similarly, Bank Nifty opened on a marginal positive note, witnessed consolidation in a narrow band, and concluded the session lower at 48,608. On the daily chart, Bank Nifty has formed a red candle with a big upper shadow, reflecting selling pressure on higher levels. On the downside, Bank Nifty will find strong support around 47,840, while on the upside 49,650 will remain a challenging barrier for the index. Traders should closely watch these levels for potential trading opportunities.

The market concluded the trading session marginally lower, after a lacklustre performance throughout the day, with a loss of 5.80 points at 22,547.55. Among the sectors, Media and Auto were the top performers, while the Metal and Realty sectors faced corrections, both dropping over 1%, making them the major laggards. Mid and Smallcaps ended the day in the red, underperforming the Frontline Index.

The overall market trend remains bearish, and there has been no significant change in the support and resistance levels for Nifty50, which stand at 22,400 and 22,800, respectively.

Benchmark indices ended mixed in a lacklustre trading session as weak Asian cues and rupee plunging to a new low further cautioned investors. Investors continued to stay risk averse as global uncertainty coupled with strong FII selling kept the mood sluggish ahead of expiry this week.

Indian rupee ended 50 paise lower at 87.20 per dollar on Tuesday versus Monday's close of 86.70.

Indian equity indices ended on a flat note in the volatile session on February 25.

At close, the Sensex was up 147.71 points or 0.20 percent at 74,602.12, and the Nifty was down 5.80 points or 0.03 percent at 22,547.55. About 1612 shares advanced, 2166 shares declined, and 127 shares unchanged.

M&M, Bharti Airtel, Bajaj Finance, Maruti Suzuki and Nestle were among major gainers on the Nifty, while losers included Hindalco, Dr Reddy's Labs, Sun Pharma, Hero MotoCorp, Trent.

On the sectoral front, IT, metal, oil & gas, energy, capital goods, PSU Bank, realty shed 0.5-1 percent, while auto, Consumer Durables, FMCG, telecom rose 0.5 percent each.

BSE Midcap and Smallcap indices fell 0.5 percent each.

The market will remain shut on February 26 on account of Mahashivratri.

#1 Lapped an easy base in Q3FY25, & SSSg improved for most brand

#2 Sales per store remain below past peaks & profitability worsened during quarter

#3 With competition set to rise as quick commerce players expand their food service offerings

#4 Base becoming more challenging in FY26, note that estimates and consensus expectations are building in a fairly robust recovery in SSSg & profitability

Indian Rupee fell sharply against the US Dollar amid uncertainty over US trade tariffs and demand from importers towards the end of the month. Covering of short positions due to expiry of the futures contract too weighed on the Rupee. However, weak US Dollar index cushioned the downside.

We expect Rupee to trade with negative on the back of overall weakness in the domestic markets and persistent FII outflows. Any recovery in the US Dollar may also weigh on the Rupee. However, any intervention by the RBI and weakness in crude oil prices may support the Rupee at lower levels. Traders may take cues from US consumer confidence data. Investors may remain cautious ahead of the core PCE price index data this week. USDINR spot price is expected to trade in a range of Rs 86.85 to Rs 87.40.

#1 KFin Tech falls 45 percent from peak that seems exaggerated in context of impact from weaker equity market

#2 Estimate 40 percent of revenue is linked to equity

#3 Trim MTM estimate further, EPS cut by 4 percent

#4 Still see healthy 17 percent CAGR in profit over FY25-27 & upside from M&A

#5 Valuation at 44x FY26 P/ E reflects stronger opportunity

#1 B&K acquisition a strategic fit

#2 Company expects a revenue CAGR of 15-25 percent in B&K business over next 3-5 years

#3 HNI business is expected to scale up over the next 12-18 months

#4 Core businesses to remain largely stable

The United States Food and Drug Administration (US FDA) has conducted a pre-approval inspection (PAI) for Sterile APIs at the company’s facility at JNPC, Visakhapatnam between February 19, 2025 and February 25, 2025.

The said inspection was concluded with 3 Form 483 Observations. These observations are procedural in nature.

The corrective and preventive actions for these observations will be submitted to the US FDA within the stipulated period. The observations issued are neither repeated observations nor related to data integrity, company said.

The Sensex was up 223.08 points or 0.30 percent at 74,677.49, and the Nifty was up 18.10 points or 0.08 percent at 22,571.45. About 1581 shares advanced, 1909 shares declined, and 122 shares unchanged.

#1 Bharti’s India business is seeing an improvement in FCF generation

#2 Expectation has been of this translating into better shareholder payout starting CY25

#3 Purchase of a 5 percent additional stake in Africa entity could raise capital allocation concerns

#4 Given growth & earnings visibility, investors would prefer Bharti to invest in its India business

#5 Investors would prefer consolidating stake in assets such as data centers

#6 Investors would prefer shareholder payouts

#1 Believe new EV policy, if implemented, will be an unfair disadvantage for Indian domestic OEMs against imported EVs

#2 Import duty of 15 percent is much lower than 43-50 percent GST on locally made comparable ICE PVs in India & on top of the road tax of 13 percent

#3 While imported vehicles are only 8,000/year, it may create concerns on long-term investment by ICE OEMs

#1 The total demand includes Rs 1.82 crore penalty and Rs13.58 crore interest

Bitcoin fell below $90,000 for the first time in more than a month, becoming the latest victim of a widening rout in cryptocurrencies.

The coin traded at around 89,000 at 7:25 a.m. London on Tuesday after hitting its lowest point since Nov. 18. Ethereum declined 10.5% to $2,388.

#1 Company down 20 percent vs recent peak due to concerns around weak CV markets & rising asset quality risks

#2 Freight rates are up vs December

#3 Growth in used PV & non-auto segment should support 17 percent AUM CAGR over FY25-27

#4 Shriram Finance’s asset quality has held up well

#5 With forward flows slowing, sharp rise in GNPA seems unlikely

#6 EPS downgrades have been limited vs peers & at 1.6x FY26 BV, valuations seems attractive

Indian rupee is trading lower by 45 paise at 87.15 per dollar on Tuesday versus Monday's close of 86.70

#1 Number of units sold is declining

#2 Divergent trends among cities are early signs of weakness

#3 Bangalore, Hyderabad deteriorating, NCR & MMR still strong

#4 Size, one driver of value growth, is peaking

#5 Realisation growth still decent; inventory trends are mixed but still at low levels

#1 Volumes were weak while value growth improved owing to price hikes

#2 Urban slowdown overpowered the rural recovery

#3 Rural remains ahead of urban volume growth for fourth consecutive quarter

#4 Inflation took limelight too this quarter triggering price increases

#1 Indian structural tubes industry has been in a turbulent phase

#2 See sharp drop in realisation, slowing demand, and capacity expansions

#3 Company being the market leader, delivered healthy volume growth in 9MFY25

#4 Volume growth at expense of margins, which took a major hit

#5 However, expect scenario to change for the better going ahead

#6 Expect APAT to report CAGR of 19 percent/23 percent/28 percent in revenue/EBITDA/PAT over FY24-27

Sector growth is set to unfold in the next decade, led by indigenization and exports, with a rising share of private defence companies.

Prefer HNAL, BHE and BDL. In the private defence space, prefer ZEN, DATAPATT, AZAD, ASTM, and Maini Precision Products.

Increased private participation may be the theme for the upcoming years, supported by new acquisitions, huge R&D progress and global collaborations.

The company's subsidiary, Venwind Refex Power (VRPL), has incorporated a new company, Venwind Refex Power Services (VRPSL), as its wholly owned subsidiary. With this, VRPSL has become a step-down subsidiary of Refex Industries Limited.

Marksans Pharma's wholly owned subsidiary Relonchem has received Marketing Authorization for the product Ibuprofen and Paracetamol 200 mg/500 mg Film-coated Tablets (Bell's Healthcare Dual Action Pain Relief 200 mg/500 mg Film-coated Tablets).

Revolt Motors has launched the all-new RV BlazeX – a electric motorcycle at Rs 1,14,990 (exshowroom, Pan India).

The company has secured a Rs 164.62 crore (excluding GST) order from Bharat Heavy Electricals Limited (BHEL) for main supply including design & engineering, mandatory spares and civil works including erection & commissioning (E&C) for 2 X 800 MW DVC

Koderma TPS Phase-II- EPC project.

The cement company has received a GST demand order of Rs 41.1 crore from the Deputy Commissioner, State Tax, Special Circle, Patna (Bihar), regarding valuation and excess ITC availed.

Chola Varma Alluri has been appointed as the Chief Operating Officer and senior management personnel of the company, effective February 24.

The Board has approved the appointment of Dorababu Daparti as Deputy Chief Executive Officer of the company, effective February 24.

Most foreign investors still see India as expensive but see opportunities in the large cap space. Most are positive on India on the medium-term outlook.

For FII flow there are two challenges - expensive Indian market and a large amount of money flowing from EMS to us.

The Sensex was up 171.66 points or 0.23 percent at 74,626.07, and the Nifty was up 7.30 points or 0.03 percent at 22,560.65. About 1671 shares advanced, 1680 shares declined, and 124 shares unchanged.

#1 Loan growth to be at lower end of guided range of 11-13 percent

#2 Deposit growth muted due to reduction in bulk deposits

#3 CD ratio guidance at approximately 76-78 percent

#4 NIM to remain in guided range of 2.8-3.0 percent

#5 NIM backed by healthy share of RAM, MCLR-linked loans

#6 Asset Quality robust; recoveries to maintain a healthy run-rate

Mahindra and Mahindra share price extend gains on second day

The Board has approved the company’s proposal to raise funds up to Rs 100 crore via the issuance of convertible warrants.

Borosil Scientific has decided to shift the Ambad plant operations to its owned facility located at Bharuch in Gujarat.

The company said shareholders have reappointed Rajeev Gupta as CFO & Executive Director (Finance) of the company for a term of 5 years.

The company's subsidiary has launched the Yesintek biosimilar in the United States. This is one of the first Stelara biosimilar market entrants in the country. Yesintek is approved for the treatment of Crohn’s disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis.

The Sensex was up 151.61 points or 0.20 percent at 74,606.02, and the Nifty was up 7.45 points or 0.03 percent at 22,560.80. About 1848 shares advanced, 1400 shares declined, and 136 shares unchanged.

The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers to assist the government in its planned stake sale in public sector banks and listed financial institutions.

#1 Faster-than-estimate store sales ramp up, healthy cannibalisation reasons for LFL growth moderation

#2 Company expects strategy of ‘healthy cannibalisation’ to eventually to lead to higher wallet share

#3 Believe drag on sales growth because of store portfolio optimisation will be lower going ahead

#1 Bharti’s India business is seeing an improvement in FCF generation

#2 Expectation has been of this translating into better shareholder payout starting CY25

#3 Purchase of a 5 percent additional stake in Africa entity could raise capital allocation concerns

#4 Given growth & earnings visibility, investors would prefer Bharti to invest in its India business

#5 Investors would prefer consolidating stake in assets such as data centers

#6 Investors would prefer shareholder payouts

Venus Remedies has entered into an exclusive license agreement with lnfex Therapeutics, a UK-based anti-infectives specialist for the clinical development of MET-X.

The company has incorporated a wholly owned subsidiary, Welspun Europe S.A., in Spain, Europe.