After opening the day on a negative note, Indian share markets extended losses today as the session progressed and closed near the day's low.

Benchmark indices fell tracking weak global cues as Trump's tariffs continued to play spoilsport.

Today's decline extends this month's downturn, driven by concerns over potential US retaliatory tariffs and continued foreign selling.

At the closing bell, the BSE Sensex stood lower by 425 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 117 points (down 0.5%).

Hindalco, Tata Steel, and Eicher Motors were among the top gainers.

M&M, Adani Ports and BPCL, on the other hand, were among the top losers.

The BSE MidCap index ended lower by 1.2%, while the BSE SmallCap index fell 1.4%.

Barring metal stocks, all sectoral indices ended on a negative note with stocks in the realty sector, banking sector, and healthcare sector witnessing most of the selling.

Shares of Benares Hotels, Hexaware Technologies, and Narayana Hrudayalaya hit their respective 52-week highs today.

The rupee was trading at Rs 86.61 against the US dollar.

Gold prices were trading at Rs 85,775 per 10 grams today.
 

BHEL Shares Fall on Arbitration Concerns

In news from the engineering sector, Bharat Heavy Electricals (BHEL) share price fell today, extending losses to the third consecutive session, as investors remained cautious following a recent arbitration case worth over Rs 0.3 billion (bn) initiated against the company.

Note that BHEL's financials for the quarter ended December 2024 were quite impressive. The company's net profit skyrocketed by 170%, reaching Rs 0.1 bn, while its revenue grew by 32% to Rs 0.7 bn. This growth was accompanied by a 40% rise in EBITDA to Rs 0.3 bn a 30-basis point expansion in margin to 4.2%.

Additionally, BHEL saw a remarkable 167% increase in order inflow, reaching Rs 0.7 bn, and its order book grew by 47% year-on-year (YoY) to Rs 160 bn.
 

Why M&M Share Price is Falling

In news from the auto sector, M&M share price declined 6% today, along with other auto stocks, following reports of Tesla CEO Elon Musk considering starting retail operations in India by April this year.

The company is planning to launch an Electric Vehicle under US$25,000, according to reports.

M&M has been a leader in the SUV segment, particularly in the internal combustion engine market.

However, the rise of electric vehicles has changed the dynamics of this industry. While M&M has made strides in the EV space with models like the XUV400, Tesla's global reputation and advanced battery technology give it an upper hand.

If Tesla introduces competitive pricing, M&M could struggle to retain its dominance. Investors fear that Tesla's presence will force existing players to cut margins, increase spending on research and development, and offer aggressive discounts, all of which could weigh on profitability.

Earlier this week, M&M's board had approved subscribing to equity shares of Mahindra & Mahindra Financial Services and Mahindra Life Space Developers through their respective rights issue.

M&M Finance plans to raise a sum not exceeding Rs 30 bn, while for Mahindra Life, the company plans to raise not more than Rs 15 bn through the rights issue process.

In 2025, so far, M&M share price has fallen more than 15%.

The stock touched its 52-week high of Rs 3,276.3 on 10 February 2025 and a 52-week low of Rs 1,790 on 15 March 2024.c

M&M trades at a PE of around 28.5, slightly above its historical average of 24.3. Given its market leadership and strong cash flows, the premium seems justified.

But a lot of optimism is already priced in, meaning upside from here depends on execution.

M&M has maintained a consistent dividend track record, with payouts increasing to 19% in FY24. Despite the stock's sharp rally, the dividend yield stands at 1.1% in FY24.

While M&M continues to generate strong cash flows, its focus on EV expansion and capex in premium SUVs means investors will closely watch whether dividend payouts remain stable or if the company prioritizes reinvestment over distributions.
 

NHPC Shares Surge Over 10%

Moving on to the news from the power sector, NHPC shares soared 10% today following an upgrade and driven by a positive outlook.

NHPC, a Mini Ratna public sector utility, is Government of India's flagship hydroelectric generation company. The company is primarily involved in the generation and sale of bulk power to various Power Utilities.

Overall, the company's strong fundamentals, coupled with the government's focus on renewable energy, have contributed to the positive sentiment surrounding its stock price. As the company continues to grow and expand its operations, investors can expect NHPC's stock to remain a promising bet in the power sector.
 

Aluminium Stocks Jump 7-10% in 5 Days

Moving on to news from the metal sector, the aluminum sector has been on a roll, with shares of leading manufacturers Hindalco Industries, National Aluminium (NALCO), and Vedanta witnessing a significant surge over the past week. The stocks have climbed 7-10% during this period, driven primarily by a substantial increase in base metal prices.

The recent surge in metal prices has brought cheer to aluminum manufacturers, including Hindalco, NALCO, and Vedanta. Historically, higher metal prices have had a positive impact on these companies, as it directly contribute to an expansion of their profit margins.

Additionally, supply-side constraints and a decline in global inventory levels have contributed to the upward momentum in aluminum prices.

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