Indian stock markets faced significant pressure on February 28, 2025, following negative global cues and persistent selling by foreign institutional investors (FIIs). The benchmark indices plunged sharply, with the BSE Sensex tumbling by 790.87 points, settling at 73,821.56, and the NSE Nifty slipping by 231.15 points to close at 22,313.90.
This downturn followed announcements of increased tariffs on Chinese products by the United States, which rattled investors and led to panic-selling across several sectors. Specific stocks bore the brunt, and notable underperformers included IndusInd Bank, Mahindra & Mahindra, Tech Mahindra, HCL Tech, Infosys, Tata Steel, Tata Motors, and Maruti.
Despite the market slump, some companies showed resilience and significant movements worth noting. Life Insurance Corporation of India (LIC), the country's largest state-owned insurer, revealed it has received a Goods and Services Tax (GST) demand notice amounting to ₹479.88 crore for the financial year 2020-21. The demand includes ₹242.23 crore as GST, ₹213.43 crore as interest, and ₹24.22 crore as penalties, impacting its stock performance.
Coal India Ltd, another key player, announced its subsidiary, Northern Coalfields, will impose the 'Singrauli Punarasthapan Charge' of ₹300 per tonne starting from May 1, 2025. This charge, expected to generate around ₹3,877.50 crore, is seen as necessary for funding upcoming projects like land acquisition and rehabilitation initiatives.
Transrail Lighting Limited also made headlines, securing fresh orders worth ₹2,752 crore, primarily focused on the power transmission and distribution sector. This brings its year-to-date order inflows to over ₹7,400 crore, signifying remarkable growth of 90% year-on-year.
Meanwhile, Tata Power’s solar manufacturing arm, TP Solar, has bagged a major contract valued at ₹632 crore for the supply of 292.5 MWp solar modules from the Solar Energy Corporation of India (SECI). Under this agreement, Tata Power aims to support India's renewable energy targets, showcasing the company's commitment to sustainable energy solutions.
On the corporate front, Liquidity concerns surfaced for Paytm, where founder Vijay Shekhar Sharma stated AI-driven efficiencies are expected to pivot the company back to profitability within two years. The strategic integration of AI features aims to streamline operations and reduce reliance on high manpower costs.
The Rail Vikas Nigam Ltd (RVNL) has been awarded a contract worth ₹135.66 crore for designing traction substations and other facilities along the Bhusaval-Khandwa section, part of the Indian Railways' ambitious infrastructure development plan.
The reactions from the government and financial analysts suggest mixed to cautious sentiments. Analysts noted the Reserve Bank of India's (RBI) recent rollback of excess risk weights for banks, which is intended to bolster capital levels and lending capacity for financial institutions with significant exposures to non-banking financial companies (NBFCs) and micro-finance institutions (MFIs).
At the same time, analysts are also observing global market trends with the USD experiencing volatility; the Indian rupee fell by 19 paise to 87.37 against the dollar, reflecting the broader apprehensions surrounding international trade policies and their influence on domestic stocks.
For investors watching the market, several stocks remain on the radar, including Tata Power, Coal India, and significant technology players like HCLTech. The government’s continued push toward infrastructure, especially within the electricity and renewable sectors, is expected to provide some buffer against the bearish trends predominantly driven by external economic pressures.
The Indian stock markets will remain on edge as new information about the economy's performance, including the Q3 GDP data expected later today, emerges. The anticipation of these figures has created uncertainty, with market commentators urging caution as investors navigate the current volatile environment.
Overall, the market's fate on this turbulent day remains intertwined with both local developments and global economic shifts. Companies like Granules India and HCLTech received mixed feedback from analysts relating to their futures, particularly after Granules faced scrutiny from the US FDA, which issued a warning letter to its facilities.
Market watchers also noted the strong performance from sectors like renewable energy and technological advancements aimed at operational improvements. The overall outlook remains cautious as traders anticipate corrections and possible rebounds based on upcoming economic indicators and corporate earnings reports.
All eyes will be on the subsequent trading sessions as investors weigh these developments against the backdrop of both local and international economic landscapes, striving to find stability amid the chaos.