News

The primary indices, NIFTY and SENSEX, broke their 10-day slump as they closed positive on 5th February 2025. As the market is reviving and many companies’ share prices are taking the upward path, the four major companies- SBI Life Insurance, Metro Brands, Bisil Plast, and Pradhin- are entering the spotlight due to their corporate actions. What are the announcements, how are the stocks trading near ex-date, and how has it affected their share prices? Let’s understand. 

What does it mean by a stock trading near ex-date?

When a stock is trading near its ex-date, it is close to the cutoff point, where investors must own the stock to qualify for upcoming dividends or other corporate benefits. The ex-date is typically set one business day before the record date (in a T+1 settlement system), meaning that any purchase made on or after the ex-date will not carry the right to the declared dividend. 

Say you are considering buying shares of XYZ Ltd., which has declared a Rs.10 dividend per share. The record date is March 10, meaning the ex-date is March 9.

• If you buy the stock on March 8 or earlier, you qualify for the dividend.
• If you buy the stock on or after March 9, you won’t receive the dividend, as the entitlement remains with the seller.

Understanding this timing is crucial, especially for short-term traders and dividend investors looking to optimize their positions.

Shares Trading Near The Ex-date:

The corporate actions taken by four major companies have put them in the headlines for the day as they are trading near ex-date. 

SBI Life Insurance:

SBI Life Insurance, one of India’s most trusted life insurance providers, has been serving customers since its incorporation in October 2000. Offering a diverse portfolio of Protection, Pension, Savings, and Health solutions, the company ensures widespread accessibility through its extensive network of 1,086 offices, nearly 26,000 employees, over 2.4 lakh agents, and multiple corporate partnerships. 

As of the nine months ending December 2024, SBI Life reported assets under management (AUM) of Rs.4,41,700 crore, a 19% year-on-year growth, while its net profit stood at Rs.1,080 crore for the same period. 

Following a Board of Directors meeting on 28th February 2025, SBI Life announced an interim dividend of Rs.2.70 per equity share for FY2024-25, reflecting a 27% payout on the share’s face value of Rs.10. 

Source: MoneyControl

Investors tracking the stock may observe adjustments around the ex-date, as share prices often reflect dividend payouts. Market activity around the stock as of 6th March 2025 is consistent, with no major fluctuation. However, considering the general price movement of stocks that trade near ex-date, it is important to stay vigilant with the price changes in the future. 

Metro Brands:

Metro Brands, a leading Indian footwear retail company, has been catering to diverse consumer preferences since its establishment in 1955. Known for its “Metro” brand and other brands like Mochi and Walkway, the company offers a wide range of footwear and accessories across various price points. With a strong physical store presence across India, Metro Brands has grown into one of the largest specialty footwear retailers in the country.

The company has announced two dividends for FY25—an interim dividend of Rs.3 per share and a special dividend of Rs.14.50 per share. The record date for both dividends is March 7, 2025, determining shareholder eligibility for the payout. The stock will trade ex-dividend on the same day, reflecting the dividend adjustment.

For the December 2024 quarter, Metro Brands reported a net profit of Rs.95.08 crore, a decline of nearly 4% compared to the previous year. Earlier, the stock saw a significant movement on 3rd February, gaining over 7% following the Union Budget announcement, which included incentives for the footwear industry and adjustments in income tax slabs. The stock traded at Rs.1,325, up 7.18% as of February 1. While budget-driven market reactions led to a sharp increase, post the dividend announcement, stock price fluctuations have been minimal

Bisil Plast:

Bisil Plast Limited, formerly known as Bisleri Gujarat Limited, is an Ahmedabad-based company engaged in the wholesale distribution of PET bottles, jars, and related packaging products. Incorporated in 1986, it primarily supplies pharmaceutical, FMCG, and bottling industries. The company rebranded as Bisil Plast Limited in 2008, strengthening its presence in the packaging sector. For the June 2024 quarter, Bisil Plast reported a net profit of Rs.0.52 lakh.

The company has announced a Rights Issue under which 48.62 crore equity shares will be issued at Rs.1 per share. Shareholders holding shares as of the record date, 8th March 2025, will be entitled to 9 new equity shares for every 1 share held. Investors who do not wish to subscribe can renounce their rights. The stock will trade ex-date for the Rights Issue tomorrow, reflecting the valuation adjustment based on the additional shares being issued.

Source: MoneyControl

While Rights Issues can lead to price adjustments due to share dilution, there has been no major fluctuation in the stock price following the announcement.

Pradhin Limited:

Pradhin Limited, formerly Bhagwandas Metals Limited, is a public company engaged in selling food, groceries, cosmetics, and other consumer goods. Incorporated in 1982, the company has expanded its presence across multiple retail categories. For the September 2024 quarter, Pradhin reported net sales of Rs.82.93 crore, reflecting a 3,238.96% increase from Rs.2.48 crore in the same quarter last year. Its quarterly net profit stood at Rs.0.82 crore, up 1,997.7%, while EBITDA rose to Rs.0.70 crore, marking a 1,650% growth.

The company has announced two corporate actions: a Bonus Issue of 2 additional shares for every 1 existing share and a Stock Split, where 1 equity share of Rs.10 face value will be split into 10 shares of Rs.1 each. The record date for both actions is March 7, 2025, determining shareholder eligibility. As the stock approaches the ex-date, no major fluctuation was recorded as of 6th March 2025.

As these corporate actions unfold, investors tracking these stocks may observe price adjustments as they trade near their respective ex-dates. Dividends, rights issues, and bonus shares often lead to price recalibrations based on payout amounts, dilution effects, and broader market sentiment. While some stocks have seen significant movements in recent weeks, the fluctuations post-announcement have remained minimal in some instances.

For those monitoring these stocks, staying informed about corporate actions, record dates, and market reactions is essential to understanding how such events might impact their holdings. Before making investment decisions, conducting thorough research and analyzing stock performance trends can help evaluate potential opportunities and risks.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Diamonds have long been a symbol of luxury, love, and status. However, the industry is undergoing a massive transformation as lab-grown diamonds (LGDs) gain popularity among young and conscious buyers. 

With their affordability, ethical sourcing, and sustainability, these stones are changing the traditional diamond market. Several Indian startups are ramping up investments in marketing, product expansion, and consumer education to drive awareness and boost sales.

India’s Growing Dominance in the Lab-Grown Diamond Industry

India has emerged as a leading producer of lab-grown diamonds, contributing approximately 15% of global production. With an estimated 3 million lab-grown diamonds produced annually, the country’s industry is primarily driven by major hubs like Surat and Mumbai.

In 2022, the Indian lab-grown diamond jewelry market was valued at around $264.5 million. The market is poised for substantial growth, with sales expected to rise at a CAGR of 14.8% over the next decade. By 2033, the total market size is projected to expand from $299.9 million in 2023 to $1.19 billion.

Source: Indextb.com

How Lab-Grown Diamonds Are Made

Before diving into changing consumer preferences, let’s understand how they are made. Lab-grown diamonds are created using two methods: High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). In HPHT, carbon is exposed to extreme heat and pressure, mimicking natural diamond formation. In CVD, a gas mixture is heated in a chamber, allowing carbon atoms to layer and form a diamond. Both methods produce real, high-quality diamonds.

A Sparkling Shift in Consumer Preferences

Some consumers are still skeptical about lab-grown diamonds, but more buyers are choosing them because they are just like mined diamonds in appearance and composition. Brands like Jewelbox and Svaraa are driving this shift, making LGDs more popular. Let’s see how these companies are leading the change and how the industry is evolving.

The Marketing Push and Spreading Awareness 

A major challenge for LGD companies is changing the mindset around synthetic diamonds. Many consumers still see mined diamonds as better, not realizing that lab-grown ones look the same. To address this, startups are investing in marketing and awareness campaigns.

• Kolkata-based Jewelbox has nearly doubled its marketing budget over the past year, with 20% of its digital spends focused on educating consumers. Their campaigns aim to address misconceptions and highlight the benefits of LGDs. They also actively share informative videos on platforms like Instagram and YouTube, explaining the science behind lab-grown diamonds and guiding customers in choosing the right one.

Source: Mint

• The brand recently gained widespread attention after appearing on Shark Tank India Season 3, securing commitments from notable investors like Peyush Bansal (Lenskart), Aman Gupta (boAt), Vineeta Singh (Sugar Cosmetics), Radhika Gupta (Edelweiss Mutual Fund), and Ritesh Agarwal (Oyo). This has further boosted awareness and credibility for lab-grown diamonds in India.

• Similarly, Svaraa, a Surat-based startup, has invested ₹10 crore in marketing since its inception in 2021. The company, backed by Kalamandir Jewellers, plans to allocate another ₹20-30 crore in the next two years to strengthen its brand positioning and consumer outreach. The company believes that targeted campaigns have played a crucial role in increasing acceptance, especially in the wedding and daily-wear jewellery segments.

Source: Mint

Growing Acceptance: A New Era for Diamonds

Lab-grown diamonds are witnessing significant traction among young buyers, particularly first-time diamond purchasers and budget-conscious consumers. Brands are already seeing encouraging numbers, indicating a shift in consumer behavior.

• Jewelbox projects that its FY26 revenue will more than double to ₹35 crore, driven by demand from millennials and Gen Z buyers. Svaraa, on the other hand, has experienced a 60% increase in inquiries and a 45% rise in sales over the past few months. The affordability factor plays a key role, as lab-grown diamonds cost 30-50% less than their mined counterparts.

Source: Mint

• According to industry experts, these diamonds possess the same physical and chemical properties as natural diamonds, making them a compelling alternative. They believe LGDs have the potential to outperform mined diamonds in clarity and color. Gobal trends suggest rising consumer acceptance, particularly in wedding rings and high-end jewellery.

• A recent Kotak Institutional Equities report supports this claim, indicating that Indian women are likely to incorporate both natural and lab-grown diamonds into their collections. The study attributes this trend to higher education levels, rising disposable incomes, and evolving fashion preferences. Meanwhile, Morgan Stanley projects that the global diamond certification market will grow from $600 million to $1 billion by 2028, driven by a 25% increase in lab-grown diamond certifications.

Source: Mint

Overcoming the “Not Real Diamond” Perception

Despite their growing popularity, lab-grown diamonds still face a perception challenge. Many people associate diamonds with investment value, even though historically, they have been among the least-performing asset classes. 

To counter these misconceptions, LGD brands are focusing on customer segmentation and targeted messaging. For instance, Jewelbox classifies its customers into two groups:

1. First-time buyers looking for affordable diamond alternatives.
2. Experienced diamond buyers seeking innovation and sustainability.

By catering to both segments without alienating either, the brand ensures a balanced market approach. It believes that aspirational value remains key, and brands must align their messaging to maintain diamonds’ desirability.

Source: Mint

The Branding Dilemma: Luxury vs. Fashion

To establish themselves in the jewellery market, LGD brands must define their positioning clearly. Industry experts highlight an important question—should lab-grown diamonds be marketed as luxury jewellery or high-end fashion accessories?

For LGDs to thrive, companies must communicate whether their product is a premium embellishment or a traditional jewellery piece with lasting value. Unlike mined diamonds, which carry an emotional and legacy factor, lab-grown diamonds need strong storytelling and brand-building strategies to create a similar connection.

Industry experts believe that the LGD industry is capital-intensive. To scale, brands need to invest in physical retail expansion, digital presence, and aggressive marketing. They highlight the importance of developing an omnichannel approach, ensuring that customers can experience LGDs both online and in-store.

Traditional Jewellers Take Notice

The rapid adoption of lab-grown diamonds has even caught the attention of traditional jewellers. Trent, the retail arm of Tata Group, launched its LGD brand ‘Pome’ last year, marking its entry into the sustainable luxury segment. While many legacy jewellers remain cautious, some are gradually testing the waters. 

Source: Mint

A Sustainable Luxury Revolution

Lab-grown diamonds are on the rise as awareness campaigns highlight their ethical, sustainable, and cost benefits, attracting more buyers.

Brands like Jewelbox and Svaraa are seeing success with increasing sales, loyal customers, and stronger recognition. The industry is at a turning point, and companies that invest in branding, clear messaging, and consumer education will lead.

With growing acceptance, the question is no longer about their authenticity but their role in the market. Will they redefine luxury jewelry or stay a niche option? One thing is certain—lab-grown diamonds are shaping the future of the industry.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

FAQ

On March 3, 2025, the Indian government granted Navratna status to IRCTC and IRFC, marking a significant leap for these railway giants. This upgrade isn’t just a title—it unlocks greater financial freedom, faster decision-making, and the ability to expand without constant government approvals.

With this move, the government is pushing for stronger, more self-reliant public enterprises that can compete with private and global competitors. But what does this mean for IRCTC, IRFC, and the railway sector as a whole? Let’s break down the impact of this renewed status.

Key takeaways from this development include

• Increased Competitive Edge: With greater financial and operational independence, IRCTC and IRFC can enhance service delivery and profitability.
• Potential for Foreign Investments: Enhanced status may attract international investors seeking stable, growth-oriented PSU stocks.
• Boost to Railway Modernization: The additional flexibility will aid infrastructure expansion, technological advancements, and service improvements within the railway sector.

Stock Market Performance Post-Navratna Announcement

Following the Navratna upgrade, IRCTC and IRFC witnessed mixed reactions in the stock market. As of March 4, 2025:

• IRFC: At 11:15 AM, the share price was quoted at ₹115.35, marking a 3.8% increase from the previous close. The market capitalization stood at ₹1.5 lakh crore. However, the stock has decreased 23% over the past year, 35% in six months, and 24% year-to-date.
• IRCTC: The stock rose by 0.8% to ₹681.50, with a market capitalization of ₹54,276 crore. The stock has fallen 28% in a year and 14% year-to-date, reflecting market volatility despite strong financial performance.

These fluctuations are influenced by broader market trends, sector-specific developments, and investor sentiment regarding railway stocks. Source: timesofindia.indiatimes.com

Understanding Navratna Status

The term ‘Navratna’ translates to ‘nine gems’ in Sanskrit, but in the context of Indian public sector enterprises, it represents a classification introduced by the government in 1997. This designation is awarded to Central Public Sector Enterprises (CPSEs) that exhibit exceptional financial performance and managerial efficiency. Achieving Navratna status allows these companies greater autonomy in investment decisions, enabling them to compete more effectively in the global market. Source: indianexpress.com

Eligibility Criteria for Navratna Status

To be eligible for Navratna status, a CPSE must first be a Miniratna Category-I company. Additionally, it must have obtained an ‘Excellent’ or ‘Very Good’ Memorandum of Understanding (MoU) rating in three of the preceding five years. The company must also achieve a composite score of 60 or more across six performance indicators:

1. Net Profit to Net Worth: This ratio assesses the profitability relative to the shareholders’ equity.
2. Manpower Cost to Total Cost of Production or Cost of Services: Evaluate the efficiency of human resource expenses in relation to overall production or service costs.
3. Profit Before Depreciation, Interest, and Taxes (PBDIT) to Capital Employed: Measures the company’s operational profitability against the capital invested.
4. Profit Before Interest and Taxes (PBIT) to Turnover: Indicates the efficiency of earnings generated from sales before accounting for interest and taxes.
5. Earnings Per Share (EPS): Reflects the company’s profitability on a per-share basis, indicating value to shareholders.
6. Inter-Sectoral Performance: Compares the company’s performance relative to other sectors.

Each indicator is assigned a specific weight, and the cumulative score determines the eligibility for Navratna status. Source: indianexpress.com

Benefits of Navratna Status

Achieving Navratna status provides CPSEs with several key advantages:

• Enhanced Investment Autonomy: Navratna companies can invest up to ₹1,000 crore or 15% of their net worth on a single project without seeking prior government approval. This autonomy facilitates quicker decision-making and project implementation.
• Operational Flexibility: These companies can form joint ventures, establish subsidiaries, and engage in mergers and acquisitions. Such flexibility enables them to diversify their portfolios and expand their domestic and international market presence.
• Financial Independence: With reduced bureaucratic oversight, Navratna PSUs can strategize and execute business plans more efficiently, aligning with market dynamics and shareholder expectations.

IRCTC: A Glimpse into Its Financials

Established in 1999, IRCTC is the exclusive entity authorized to provide online railway ticketing, catering, and tourism services for the Indian Railways. In the financial year 2023-24, IRCTC reported:

• Annual Turnover: ₹4,270.18 crore
• Profit After Tax (PAT): ₹1,111.26 crore
• Net Worth: ₹3,229.97 crore

These robust financials underscore IRCTC’s pivotal role in enhancing passenger convenience and contributing to the revenue stream of Indian Railways. Source: Livemint

IRFC: Financial Backbone of Indian Railways

Founded in 1986, IRFC is the dedicated financing arm of the Indian Railways, responsible for raising funds to support the national transporter’s expansion and modernization initiatives. For the fiscal year 2023-24, IRFC’s financial highlights include:

• Annual Turnover: ₹26,644 crore
• Profit After Tax (PAT): ₹6,412 crore
• Net Worth: ₹49,178 crore

IRFC’s strategic financial interventions have been instrumental in the timely execution of numerous railway projects, thereby bolstering the infrastructure and service quality of Indian Railways. Source: Livemint

Future Prospects for IRCTC and IRFC

The conferment of Navratna status is poised to usher in a new era of growth and efficiency for both IRCTC and IRFC:

• Strategic Investments: With the autonomy to invest substantial sums without prior approval, both entities can swiftly capitalize on emerging opportunities, be it in technology upgrades, service diversification, or infrastructure development.
• Global Expansion: The enhanced operational flexibility allows these companies to explore international markets, form global partnerships, and benchmark their services against international standards, elevating global competitiveness.
• Shareholder Value: Increased autonomy and potential growth will likely enhance investor confidence, potentially leading to improved market valuations and shareholder returns.

Other Navratna PSUs in the Railway Sector

With the inclusion of IRCTC and IRFC, all seven listed CPSEs under the Ministry of Railways have attained Navratna status. The other five are:

1. Container Corporation of India (CONCOR): Specializes in multimodal logistics and freight transport.
2. Rail Vikas Nigam Limited (RVNL): Focuses on creating and auguring rail infrastructure.
3. IRCON International: Engaged in engineering and construction of railway projects domestically and internationally.
4. RITES Limited: Provides consultancy services in transport infrastructure.
5. RailTel Corporation of India: Manages railway telecommunications and broadband services.

These companies collectively contribute to the modernization and expansion of the Indian railway ecosystem, reinforcing its position as one of the world’s largest rail networks.

Conclusion

Granting Navratna status to IRCTC and IRFC is a transformative step in the Indian railway sector. It reinforces these PSUs’ financial strength and strategic importance while providing them with the necessary autonomy to pursue aggressive growth plans. As these companies leverage their enhanced status to expand operations, improve efficiency, and explore new markets, their impact on India’s transport and logistics infrastructure will likely be substantial. Investors and stakeholders will closely watch how these enterprises capitalize on their new designation to shape the future of Indian Railways.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Global financial markets are grappling with heightened volatility as a series of economic and geopolitical events unfold. From trade tensions and inflation worries to shifting monetary policies, investors worldwide are navigating a period of uncertainty.

The latest blow came from U.S. President Donald Trump’s decision to impose 25% tariffs on imports from Canada and Mexico, effective immediately. This move triggered a sharp sell-off on Wall Street, with the S&P 500 falling 1.8%, the Dow Jones Industrial Average dropping 649 points (1.5%), and the Nasdaq Composite plunging 2.6%. Beyond the U.S., Asian and European markets also reacted, reflecting concerns about trade disruptions, slowing growth, and inflationary pressures.

Here’s a breakdown of the seven key reasons why global markets are on edge, with a special focus on India’s economic outlook.

Trump’s Tariffs and the Escalating Trade War

The U.S. administration’s imposition of 25% tariffs on imports from Canada and Mexico marks a significant escalation in global trade tensions. Trump has also announced plans to increase tariffs on Chinese imports from 10% to 20%, signaling further disruption in supply chains.

• Immediate Market Impact: U.S. stocks tumbled, with the S&P 500 posting its worst daily drop since December 18.
• Global Reaction: Asian markets followed suit—Japan’s Nikkei 225 fell 1.03%, South Korea’s Kospi dropped 0.41%, and Hong Kong’s Hang Seng indicated a weaker opening.
• Canada’s Retaliation: Canada announced counter-tariffs on $107 billion worth of U.S. goods, further complicating North American trade relations.

For India, these developments could present opportunities and risks. While Indian exporters might benefit from a shift in global supply chains, rising trade barriers could also lead to increased import costs and inflationary pressures.

Source: AP News

2. Inflation Concerns and Interest Rate Uncertainty

With inflation persisting in major economies, central banks are walking a fine line between controlling price rises and sustaining economic growth.

• U.S. Inflation: While consumer prices have eased slightly, inflation remains a primary concern for the Federal Reserve, limiting its ability to cut interest rates.
• European Inflation Trends: In contrast, easing inflation in Europe has led to expectations that the European Central Bank might announce an interest rate cut.
• India’s Inflation Risks: Rising commodity prices and a weaker rupee could drive inflation higher, impacting household spending and corporate profitability.

The Reserve Bank of India (RBI) will need to balance inflation control with economic growth, influencing future monetary policy decisions.

3. Weakening Economic Growth in the U.S.

A series of disappointing economic reports from the U.S. have added to market jitters:

• Manufacturing Slowdown: The U.S. Manufacturing PMI slipped to 50.3 in February from 50.9 in January, indicating slower factory activity.
• Job Market Pressures: Layoffs in key sectors are raising concerns about economic resilience.

If the U.S. economy slows further, global trade and investments could take a hit, affecting emerging markets like India.
Source: The Mint

4. Stock Market Volatility and Tech Sector Losses

The recent downturn has hit high-growth stocks particularly hard:

• Nvidia plunged 8.8% following the broader market slump.
• Tesla fell 2.8%, adding to its recent struggles.
• Amazon, Microsoft, and Intel also faced declines, reflecting investor caution in the technology sector.

Given India’s increasing reliance on foreign institutional investors (FIIs), a prolonged global market correction could lead to further outflows from Indian equities.

5. U.S. Dollar Strength and Currency Fluctuations

The U.S. dollar’s strength has put pressure on emerging market currencies, including the Indian rupee.

• The Indian Rupee’s Volatility: The currency has been fluctuating amid foreign investor sell-offs.
• Import Costs and Trade Deficit: A stronger dollar makes imports more expensive, increasing India’s trade deficit.

For India, currency stability remains a crucial factor in maintaining investor confidence and controlling inflation.

Know More:  SEBI Registered investment advisory |  Stock investment advisory

6. Geopolitical Risks: U.S.-Ukraine Policy Shift

The U.S. has paused military aid to Ukraine, signaling a shift in foreign policy that could have broader geopolitical ramifications.

• Potential Impact on Global Energy Markets: If geopolitical tensions escalate, oil prices could spike, increasing energy costs for countries like India.
• Investor Uncertainty: Markets are wary of sudden policy shifts that could affect global trade and financial stability.

India, as a major oil importer, will need to manage energy costs carefully to avoid inflationary shocks.
Source: The Mint

7. Indian Stock Market Outlook Amid Global Sell-Off

The Indian equity market has not been immune to global volatility:

• Sensex fell 112 points, closing at 73,085.94.
• Nifty 50 dropped 5.40 points, ending at 22,119.30.
• Foreign Institutional Investors (FIIs) Outflows: Over $26 billion has exited Indian stocks since October.

Despite these headwinds, certain Indian sectors could find growth opportunities:

✔ Pharmaceuticals – Rising demand for alternatives to Chinese drug suppliers.
✔ Auto Components & Electronics – Potential supply chain shifts benefiting Indian manufacturers.
✔ Textiles – Increased exports to the U.S. due to higher tariffs on Chinese goods.

Conclusion

Global markets are navigating a period of uncertainty fueled by trade tensions, inflation worries, and shifting economic policies. While the immediate reaction has been a sell-off across major indices, long-term opportunities may emerge for markets that adapt to changing trade dynamics.

For India, the key lies in strengthening trade partnerships, enhancing export competitiveness, and managing inflation risks. As global trends continue to evolve, India’s resilience and strategic positioning will determine how well it weathers this period of financial turbulence.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The Indian stock market has endured a turbulent February, marking its worst losing streak in nearly three decades. Investors who, just a few months ago, were riding high on record-breaking market rallies have now witnessed a significant downturn. Since hitting its all-time peak of 85,978 in September, the Sensex has plunged 12,780 points, a decline of nearly 15%. Meanwhile, the Nifty has fallen 16% from its record high of 26,277.35.

February alone saw the Sensex fall by nearly 6%, closing the month at 73,198. The Nifty followed suit, tumbling by 420 points on the last trading day to settle at 22,124.70. With this, Nifty has recorded five consecutive months of declines, a phenomenon not seen since 1996.

Why is the Market Falling?

Several factors have contributed to the ongoing slump, creating a perfect storm that has led to massive wealth erosion for investors.

1. Foreign Institutional Investors (FII) Outflows
   FIIs have been consistently pulling money out of Indian equities, a key factor behind the market decline. FIIs sold stocks worth Rs 556.56 crore on a single day in February, indicating weak global confidence in Indian markets. Meanwhile, domestic institutional investors (DIIs) stepped in, buying stocks worth Rs 1,727 crore, but their efforts were not enough to counterbalance the sell-off.
2. Global Economic Concerns
   Trade war fears and policy uncertainties, particularly from the U.S., have added to investor anxiety. The continued rhetoric around tariffs and global economic slowdowns have made markets jittery.
3. Sector-Specific Weakness
   The IT and auto sectors have been among the hardest hit. The Nifty IT index fell 4.2% in February, while the Nifty Auto index dropped by 3.9%. Concerns about a U.S. slowdown, deal deferrals, and weak earnings have contributed to the IT sector’s underperformance. Similarly, auto stocks have suffered due to sluggish demand and increasing input costs.
4. Technical Breakdown
   The Nifty broke through crucial support levels, plunging below 22,200. Technical analysts now predict that a failure to hold the 21,800–22,000 range could trigger another sharp decline. Source: India Today

The Numbers Behind the Sell-Off

• Sensex: Down by 12,780 points from its all-time high, a 15% decline.
• Nifty: It dropped by 4,150 points from its peak, losing 16% overall.
• Market Wealth Erosion: Investors lost approximately Rs 9 lakh crore in a single day of trading.
• NSE Statistics: Out of 2,972 stocks traded, 2,416 closed in the red, while only 489 managed to advance. A staggering 789 stocks hit their 52-week lows.
• Longest Losing Streak Since 1996: Five consecutive months of decline have pushed the market into uncharted territory, with the last similar streak occurring between July and November 1996.

Source: Economic Times

Top 5 Gainers (as on 28 February, 2025)

Symbol	Open	High	Low	Prev. Close	LTP	%chng	Volume	Value
HDFCBANK	1,685.00	1,737.25	1,685.00	1,700.70	1,730.15	1.86	2,72,58,364	46,91,55,54,649.05
SHRIRAMFIN	609.95	620	602.25	606.8	619	1.73	2,37,71,834	14,59,02,58,367.50
COALINDIA	366.80	375.75	365.30	363.85	368.50	1.51	2,18,99,478	8,12,96,09,488.30
TRENT	4,760.00	4,876.40	4,715.00	4,805.30	4,838.65	0.96	21,78,604	10,47,97,44,203.15
HINDALCO	630	636.6	619.45	631.95	634	0.38	1,30,41,185	8,22,31,92,748.30

HDFC Bank

HDFC Bank is India’s largest private sector bank by assets and market capitalization. It offers various financial services, including retail banking, corporate banking, and wealth management. Known for its strong asset quality and digital banking initiatives, it remains a key player in India’s banking sector.

Shriram Finance

Shriram Finance is a leading non-banking financial company (NBFC) specializing in retail lending. It provides vehicle loans, small business loans, and personal finance solutions, catering primarily to underserved markets. Its focus on rural and semi-urban segments drives its growth.

Coal India

Coal India Limited (CIL) is the world’s largest coal producer, supplying over 80% of India’s coal requirements. A state-owned enterprise, it plays a crucial role in India’s energy sector, powering thermal power plants and industries. Despite growing clean energy initiatives, coal remains a critical resource for India’s economy.

Trent

Trent Ltd., a subsidiary of the Tata Group, is a leading retail operator in India. The company operates a diverse portfolio of retail formats, including department stores, hypermarkets, supermarkets, and specialty stores. Trent’s flagship brands are Westside, a popular fashion retailer, and Star Bazaar, a hypermarket chain.

The company also operates Landmark, a family entertainment store offering books, toys, and sports merchandise. The company operates online and physical stores, providing customers with convenient shopping options. With its strong brand presence and extensive product offerings, Trent has become a major player in the Indian retail landscape.

Hindalco Industries Ltd.

Hindalco Industries Ltd. is a flagship company of the Aditya Birla Group. The Co and its subsidiaries are primarily engaged in the production of Aluminium and Copper. With a global footprint and operations across the aluminum value chain, Hindalco serves diverse industries like construction, transportation, packaging, and consumer goods. The company’s commitment to sustainability and innovation and its focus on operational excellence position it as a key player in the aluminum market.

Know More:  SEBI Registered investment advisory |  Stock investment advisory

Top 5 Losers (as on 28 February, 2025)

Symbol	Open	High	Low	Prev. Close	LTP	%chng	Volume	Value
TECHM	1,570.00	1,572.90	1,478.40	1,588.25	1,485.95	-6.32	41,55,992	6,24,26,47,827.15
WIPRO	294.00	294.00	277.00	294.50	278.50	-5.72	1,74,58,839	4,90,25,04,059.10
INDUSINDBK	1,040.00	1,040.65	970.10	1,046.70	972.30	-5.41	5,56,66,745	55,12,44,38,402.30
M&M	2,695.10	2,699.00	2,572.20	2,726.55	2,595.00	-5.19	75,49,863	19,66,03,15,531.70
BHARTIARTL	1,641.95	1,648.45	1,559.50	1,650.40	1,569.10	-4.86	1,36,40,211	21,57,06,35,492.60

Tech Mahindra

Tech Mahindra is a leading IT services and consulting company specializing in digital transformation, AI, and cloud solutions. It serves global clients across the telecom, healthcare, and banking industries, leveraging its expertise in emerging technologies.

Wipro

Wipro is one of India’s top IT services firms, offering cloud computing, cybersecurity, and AI solutions. Its strong global presence serves diverse industries, focusing on innovation and automation to drive business transformation.

IndusInd Bank

IndusInd Bank is a major private sector bank in India, known for its strong retail and corporate banking portfolio. It provides various financial services, including personal loans, vehicle financing, and treasury operations, focusing on digital banking.

Mahindra & Mahindra

Mahindra & Mahindra is a leading Indian multinational in automotive and farm equipment manufacturing. Known for its SUVs, tractors, and electric vehicles, the company is dominant in India’s automobile and agribusiness sectors.

Bharti Airtel

Bharti Airtel is one of India’s largest telecom providers, offering mobile, broadband, and digital services. It has a strong presence in India, Africa, and South Asia, focusing on 5G expansion, digital payments, and content-driven services.

Is a Rebound Possible?

Despite the persistent weakness, some market participants believe a short-term rebound could be in the cards. Oversold conditions and technical indicators suggest that Nifty may be nearing a point of capitulation.

Historically, March has been a positive month for Indian markets. Over the last 10 years, Nifty has ended March in the green seven times, suggesting seasonal trends could provide some relief. However, with no clear trend drivers and continued global uncertainties, volatility will likely remain high in the near term. Source: Economic Times

Conclusion

The Indian stock market is experiencing one of its worst phases in nearly three decades, with relentless selling and fading investor confidence. While historical data indicates that markets may recover in March, external factors such as global economic conditions and FII sentiment will be crucial in determining the next move. For now, the only certainty is uncertainty.

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