The Economic Times

Benchmark indices ended firm on Wednesday, supported by gains in metals and PSU banks even as IT stocks slipped back into decline. The Sensex rose 283 points and the Nifty added 94. Broader markets advanced, while global cues remained mixed and crude prices edged higher amid U.S.Iran negotiations.

Promoter activity returned at Sula Vineyards as Rajeev Suresh Samant lifted his stake to 24.5%the first increase since the 2022 IPO. The move comes despite weak Q3 numbers, with profits hit by tactical destocking in Karnataka and softer demand in Bengaluru.

This is the first significant easing of five-year-old curbs that have largely shut Chinese firms out of India's $700 billion-$750 billion government contract market.

During a strategic meeting in the heart of Oslo, Indias Finance Minister Nirmala Sitharaman engaged with top Norwegian business leaders and investors. She highlighted Indias robust trade infrastructure and portrayal as one of the fastest-growing economies globally. Conversations pivoted around lucrative investment avenues in pivotal areas such as renewable energy and rare earth materials.

India is on track to meet its 500 gigawatt clean energy goal by 2030. Current capacity additions are strong, but a significant challenge remains with slow power demand growth. Investors should watch for a recovery in electricity consumption. Key policy changes and battery storage integration are also crucial for the sector's success.

SBI Funds Management Ltd., Indias largest asset manager, may file draft papers in early March for an IPO that could raise up to $1.5 billion, according to people familiar with the matter. The offering could value the firm at about $15 billion, slightly below ICICI Prudential Asset Management Co.s $16.7 billion valuation after its recent listing.

The STOXX 600 index rose on Wednesday, with defence stocks in the lead following strong earnings from the UK's BAE Systems, while investors mulled the outlook for monetary policy amid reports of a leadership change at the European Central Bank.

Shares of Easy Trip Planners surged 60% in three sessions after board approval to raise up to Rs 500 crore. The EaseMyTrip operator plans expansion in hotels and holidays, higher tech investments, and stronger financial flexibility, supported by sequential revenue growth and a return to quarterly profit.

Indian markets hovered near flat line on Wednesday, with Nifty struggling above 25,700. Experts advise caution, noting key resistance at 25,770 and potential downside towards 25,300. Investors are urged to seek value or momentum, as broad sector bets are risky due to uneven performance, even within financials.

Nithin Kamath warns that margin trading funding is riskier than many realise because traders focus only on interest rates and ignore brokerage charges. He argues that in leveraged trades, every costinterest, brokerage and taxesraises the breakeven point, making small price moves far harder to profit from.

Blackstone-backed Liftoff Mobile filed confidentially for an initial public offering in the U.S. on Tuesday, hours after withdrawing an earlier plan, as a recent rout in software stocks makes investors increasingly wary of new listings.

India's oilmeal exports saw a significant drop of 42 percent in January. Shipments of soyabean meal and rapeseed meal plunged, impacting the overall figures. Ricebran extraction, however, showed a surge. This decline affects animal feed supplies. Key buyers include China, South Korea, Bangladesh, and Germany. Processors awaited new crop supplies for rapeseed meal.

Gold delivered strong returns in 2025 and 2026 amid global shifts. US markets also saw gains, sparking a debate for Indian investors. Gold serves as a hedge, while US equities offer diversified growth and currency advantage. A 20-30% allocation to US equities can enhance long-term portfolio efficiency. Measured gold allocation provides tactical stability.

Foreign institutional investors and mutual funds raised stakes in 127 BSE 500 stocks over two quarters, driving sharp FY26 gains. Several, including Force Motors and GMDC, delivered 50-185% returns, signaling strong institutional confidence.

Indian IT stocks face an AI-driven reset, with growth expectations recalibrated. Fund managers see opportunity in banking and financials, citing recovering credit growth and a bottoming NPA cycle. Automobiles, especially commercial vehicles, also show early recovery signs. While manufacturing and capex themes remain strong, valuations are a concern. Consumption, particularly FMCG, presents an unfavorable risk-reward.

Shares of E2E Networks and Netweb Technologies saw significant gains today. Both companies announced collaborations with chip giant Nvidia. E2E Networks is building an Nvidia GPU cluster for sovereign AI development. Netweb Technologies unveiled advanced AI infrastructure, including a 'Make in India' AI supercomputer. These developments highlight a strong focus on advancing artificial intelligence capabilities in India.

European Central Bank President Christine Lagarde may step down early, potentially before the 2027 French presidential election, to allow President Macron to influence her successor. This move aims to avoid complications if the far-right wins. While Lagarde's term officially ends in October 2027, her early departure is being considered, with French and German backing crucial for any candidate.

Japanese government bond yields saw a slight increase as investor sentiment on the nation's fiscal health and the Bank of Japan's future rate hikes remained divided. While super-long bond yields had previously surged due to spending concerns, they have since retreated. Recent weak outcomes in bond-buying operations also impacted sentiment in shorter-term maturities.

Australian shares climbed, led by National Australia Bank's record surge, while New Zealand equities saw a significant boost after the central bank maintained its interest rates. The ASX 200 reclaimed the 9,000 mark, buoyed by strong bank earnings, though caution lingers regarding future rate hikes. New Zealand's market experienced its best day in over nine months.

Indian markets show strong performance in PSU banks, capital goods, and infrastructure. Dipan Mehta highlights PSU banks closing valuation gaps with private peers. Capital goods firms benefit from robust order books and capex cycles. FMCG stocks face caution due to slow growth. Infrastructure and engineering companies with diversified orders, like L&T, are favored.

Upstream oil stocks, including ONGC, Oil India and Seamec, fell sharply on Wednesday as crude prices weakened amid progress in USIran talks. Lower oil prices hit producers realisations and margins, triggering broad declines across upstream names.

The farmers' organisation Samyukt Kisan Morcha has expressed strong opposition to the India-US trade deal, deeming it harmful to the agricultural community. They are calling for an urgent cancellation of the agreement. As the Budget session approaches, a series of public gatherings will take place across the country to rally support.

Despite the steep 63% post-IPO crash in Ola Electric Mobility, it isnt the worst performer. Over 115 NSE-listed IPOs from 202526 now trade below issue price, with several SME listings plunging 7080%. The broad-based correction underscores deep wealth erosion across sectors amid weak market sentiment.

Shares of ITC Ltd, Godfrey Phillips India Ltd and VST Industries Ltd jumped rose sharply on Wednesday after reports of cigarette makers raising prices to absorb higher excise duties. The move sharply narrows expected EBIT pressure to about 2%, versus earlier forecasts of 815%.

Indian government bonds remained steady Wednesday despite a debt switch aimed at reducing gross borrowing for the upcoming fiscal year. Traders are now anticipating upcoming debt supply and a holiday closure. The benchmark bond yield saw a slight increase after a recent decline. Investors await Friday's significant bond sale, with overnight swap rates showing mixed activity.

Infosys' AI roadmap, targeting a $300-400 billion market, failed to impress investors, causing shares to tumble despite a bullish outlook from brokerages. While the company highlighted AI as a structural tailwind, market concerns persist over the immediate deflationary impact on legacy revenues versus the long-term benefits.

The International Monetary Fund said the Japanese yens value should be set by market forces, reaffirming support for Japans flexible exchange-rate regime amid global currency volatility. IMF mission chief Rahul Anand noted there is no right level for the currency, as exchange-rate movements help economies adjust to global shifts.

Public sector banks remain attractive for investors even after recent gains. A significant valuation gap persists with private lenders, suggesting further narrowing. Metals are in a strong long-term upcycle driven by global trends. Volatility in commodities is natural, but the outlook is positive. Investors can still selectively enter PSU banks and metals for future growth.

Indian IT firms' robust business models, honed over decades, are well-equipped to navigate AI disruption, according to analyst Sandip Agarwal. While valuations remain a concern, the sector's ability to reskill and adapt to client needs, coupled with significant AI opportunities, suggests resilience. Strong industry preparedness for AI implementation promises substantial revenue growth in the coming years.

Indias bond market is defying monetary policy easing, with benchmark yields staying elevated despite a 125bps repo rate cut. Structural liquidity tightness, weak deposit growth, and limited demand for G-Secs are driving this disconnect. The RBIs proactive liquidity measures aim to ease funding stress as banks face margin pressures.

Kevin Warsh, a nominee for Federal Reserve leadership, favors shrinking the central bank's balance sheet. However, achieving this goal faces significant hurdles, as current financial system rules necessitate substantial bank reserves. Reducing the Fed's footprint too aggressively risks market volatility and loss of control over interest rates.

Market expert Sunil Subramaniam suggests consumer staples may lag discretionary spending due to GST impacts and weak rural demand, highlighting monsoon's importance. He sees technology as a fresh entry point, with AI concerns priced in and IT firms boosting investments. Manufacturing growth hinges on FDI, tech transfer, and global partnerships for scaling up.

Private credit blends the discipline of lending with the forward-looking mindset of investing. By offering bespoke, negotiated capital structures across business lifecycles, it provides flexible, growth-oriented financing. As Indian businesses evolve, private credit is emerging as a vital, permanent component of modern capital structures rather than an alternative.

Ola Electric Mobility shares rose after the Bombay High Court stayed an arrest warrant issued against CEO Bhavish Aggarwal, easing investor concerns following the stocks recent four-session decline.

San Francisco Fed President Mary Daly stressed the need for sustained inflation reduction, noting AI's potential productivity boost but emphasizing cautious policy. She highlighted the lack of current macroeconomic evidence for an AI-driven surge, drawing parallels to the 1990s tech boom. Daly also pointed to labor market vulnerabilities and business caution regarding hiring and AI's impact.

Gold and silver futures saw an upward opening on MCX on Wednesday. This occurred even as progress in US-Iran talks eased geopolitical tensions, reducing safe-haven demand for precious metals. Analysts suggest caution due to market volatility. Physical gold prices varied across major Indian cities. Investors are advised to avoid fresh positions this week.

Dilip Buildcon shares: The company emerged as the lowest bidder for a Rs 702-crore flood-control embankment project in Gujarat, to be executed on an EPC basis over 24 months along the Narmada River in Bharuch district.

India's Alternative Investment Fund (AIF) industry has surpassed 15.05 lakh crore in commitments, driven by domestic capital now dominating over 55% of investments. The emergence of secondary markets as a significant liquidity tool, alongside consistent alpha generation over public markets, signals a maturing Indian private capital landscape.

Infosys shares are in focus after it unveiled Infosys Topaz, its AI-first framework, aimed at helping enterprises unlock AI value at scale. Analysts see an incremental $300400 billion AI services opportunity by 2030. Motilal Oswal maintains a Buy rating, Morgan Stanley an Equal Weight rating, while Q3FY26 results show stable margins and 9% revenue growth.

Indian benchmark indices Nifty and Sensex opened higher for a third consecutive session, boosted by gains in metal and PSU stocks. However, a significant selloff in IT stocks capped the overall market rise. Kwality Wall's India and Tech Mahindra were among the top decliners on the Sensex.

Despite market jitters, several small-cap Indian companies showcased remarkable profit growth in the December quarter. Craftsman Automation led the pack with a 353% surge, followed by Delhivery and Navin Fluorine, highlighting strong performance across diverse sectors like automotive, logistics, and specialty chemicals. This earnings rebound offers a promising outlook.

LIC is making a contrarian bet on the IT sector, investing heavily in companies like TCS and HCL Technologies while reducing its exposure to banking giants such as SBI and HDFC Bank.