Market Commentary - Mid-Session
The domestic equity indices traded with significant losses in early trade, with global headwinds, including the expected tariff measures by U.S. President Donald Trump on April 2, keeping investors cautious. The Nifty traded below the 23,500 level.
Realty, IT and consumer durables shares declined while auto, media and oil & gas shares advanced.
At 09:30 IST, the barometer index, the S&P BSE Sensex, tumbled 389.21 points or 0.50% to 77,025.71. The Nifty 50 index shed 40.45 points or 0.17% to 23,475.25.
In the broader market, the S&P BSE Mid-Cap index declined 0.48% and the S&P BSE Small-Cap index fell 0.33%.
The market breadth was strong. On the BSE, 1,983 shares rose and 869 shares fell. A total of 162 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 4,352.82 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 7,646.49 crore in the Indian equity market on 28 March 2025, provisional data showed.
Economy:
Moody's Ratings said India's growth at 6.5% will remain the highest amongst the advanced and emerging G-20 countries, supported by tax measures and continued monetary easing. The report released today said that the country will continue to attract capital and withstand any cross-border outflow. In its report on emerging markets, Moody's said emerging economies are exposed to choppy waters from the churn of US policies. It said economic activity in the fastest-growing economies will slow slightly from high levels but remain strong this year and next.
Meanwhile, India's current account deficit (CAD) rose marginally to $11.5 billion, or 1.1% of gross domestic product (GDP), during the October-December 2024 quarter of the ongoing financial year (Q3FY25) from $10.4 billion, or 1.1% of GDP, a year ago, amid a rise in service exports. Sequentially, CAD moderated from $16.7 billion in Q2FY25, or 1.8% of GDP, the latest data released by the Reserve Bank of India (RBI) showed. The current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country's external sector. Merchandise trade deficit increased to $79.2 billion in Q3FY25 from $71.6 billion during the same period of FY24. Net services receipts increased to $51.2 billion in Q3FY25 from $45 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as business services, computer services, transportation services, and travel services.
Stocks in Spotlight:
Power Mech Projects declined 1.09%. The company has secured an order worth Rs 425 crore from Mirzapur Thermal Energy (UP), a wholly owned subsidiary of Adani Power.
IRCON International added 1.58% after the company announced that its joint venture with SSNR Projects has secured a contract worth Rs 872.69 crore from Rail Vikas Nigam (RVNL) for the construction of railway tunnels.
RailTel Corporation of India rallied 1.49% after the company has received a work order from Ircon International amounting to Rs 162.58 crore.
Numbers to Track:
MCX Gold futures for 4 April 2025 settlement rose 0.77% to Rs 90,814.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 104.09.
The United States 10-year bond yield fell 1.01% to 4.202.
In the commodities market, Brent crude for June 2025 settlement rose 20 cents or 0.27% to $74.97 a barrel.
Global Markets:
US Dow Jones index futures were down 101 points, indicating a negartive opening in the US stocks today.
Most Asian indices climbed on Tuesday, following gains in key Wall Street benchmarks as investors awaited clarity on U.S. President Donald Trump's tariff rollout.
The Reserve Bank of Australia on Tuesday expectedly held its benchmark policy rate at 4.1%, despite having flagged earlier that inflation was declining at a faster pace than expected. The country's inflation reading in February came in at a softer-than-expected 2.4%.
South Korea's exports grew 3.1% in March, up from 0.7% the previous month, reaching $58.24 billion. However, the growth fell short of the expected 3.5%. Imports increased by 2.3% to $53.29 billion, resulting in a trade surplus of $4.99 billion. Meanwhile, factory activity slightly declined to 49.1 in March from 49.9, reflecting weak domestic demand.
China's Caixin PMI for March came in at 51.2, slightly above February's 50.8 reading. This follows the government PMI data, which showed stronger-than-expected growth in the manufacturing sector.
In the U.S., major indices saw initial losses but rebounded on Monday. The S&P 500 closed 0.55% higher, while the Dow Jones gained 1%. The NASDAQ Composite, however, edged down by 0.14%.
Trump is set to announce his reciprocal tariff plan on Wednesday at a White House Rose Garden event. Press Secretary Karoline Leavitt said the announcement would focus on 'country-based' tariffs. Last week, Trump roiled markets by imposing a 25% tariff on all non-American cars, effective April 2. He may extend tariffs to other sectors, including commodities, semiconductors, and pharmaceuticals. Investors fear these tariffs'ultimately paid by U.S. importers'could stoke inflation and hamper economic growth.
NVIDIA Corporation slipped 1.2% on Monday. Tesla is set to report its first-quarter delivery data this week amid protests over CEO Elon Musk's political activities. CoreWeave Inc., backed by NVIDIA, plunged over 7% just days after its IPO, falling below its debut price. Meanwhile, Mr. Cooper Group Inc. surged more than 14% after agreeing to a $9.4 billion acquisition by Rocket Companies.
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