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The Indian stock market rebounded with Sensex up 1,300 points and Nifty rising by 379 points, driven by GDP rebound, lower dollar index, and FII trends. Watch inflation data and tariffs.
Stock Market This Week: CPI, US Inflation data, BEL and HUDCO dividends in foucs.
The Indian stock market breathed a sigh of relief last week after weeks of relentless selling. Sensex closed higher by 1,300 points or 1.88 per cent at 74,332, while Nifty settled at 22,552, up 379 points or 1.71 per cent.
Vinod Nair, Head of Research, Geojit Financial Services said, “The upturn happened due to a rebound in Q3FY25 GDP and a recovery in consumption. A fall in the dollar index also sweetened investor sentiment towards emerging markets, while the US equity markets have declined due to uncertainty over Trump’s economic policies.”
The trend of FII selling in India continued in early March, too. FIIs have sold equity for Rs 24,753 crores from the Indian market in the first week of March.
“There is big buying in Chinese stocks triggered by attractive valuations and expectations from the recent positive initiatives by the Chinese government towards their big businesses,” explained Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
CPI data (Inflation), US inflation data, ex-date of BEL and Hudco shares for dividends, FIIs trend and Trump’s tariff are key factors to watch this week.
Inflation Data
The Indian government will release the Consumer Price Index (CPI) or commonly known as Inflation data for February 2025 this week. Headline inflation for January cooled off to 4.31 per cent, which was the lowest year-on-year inflation after August 2024.
FII Trend
FIIs have remained the net-seller in early March too. As experts hint at the massive outflow of FIIs due to attraction towards Chinese stocks, it will be important to keep track of it. The rally in Chinese stocks has resulted in the Hang Seng Index performing exceedingly well with YTD return of 23.48% as against -5% YTD return in Nifty.
US Inflation Data
US government will release the inflation data after a disappointing employment data. US Inflation Bureau of Labor Statistics figures on Wednesday are projected to show that the consumer price index minus food and energy climbed 0.3%, based on the median estimate of economists surveyed by Bloomberg.
Trump’s Tariff Threats
US President Donald Trump’s announcement to impose 20% tariffs on imports from Mexico and Canada and a reciprocal tariff on China has caused a ripple effect in the global markets with expectations of an ensuing full-blown trade war.
BEL, HUDCO Dividends
Bharat Electronics Limited (BEL) has declared an interim dividend of Rs 1.50 per share (150%) for the financial year 2024-25. The interim dividend will be paid within 30 days from the date of declaration.
BEL has fixed Tuesday, 11 March 2025, as the record date to determine the eligibility of the shareholders for the 150% payout.
Housing & Urban Development Corporation Ltd (HUDCO) is all set to declare its second interim dividend for the financial year 2024-25 soon. In its exchange filing, HUDCO intimated that the upcoming board meeting to be held on 10 March 2025, will consider the declaration of a second interim dividend for the Financial Year 2024-25.
In the filing, HUDCO said that Friday, 14 March, has been fixed as the record date for determining the entitlement of the shareholders for the payment of the second interim dividend. However, it is subject to the approval of the Board of Directors.
Disclaimer: Users are advised to check with certified experts before taking any investment decisions.