Market Commentary - Quick Review
The key equity benchmarks ended with major losses on Tuesday, declining for the second day in a row, as investors prepared for the impact of US reciprocal tariffs, scheduled to take effect on April 2. The Nifty ended below the 23,200 level. Media and oil & gas shares advanced while realty, IT and consumer durables shares declined.
As per provisional closing, the barometer index, the S&P BSE Sensex, tanked 1,390.41 points, or 1.80%, to 76,024.51. The Nifty 50 index tumbled 353.65 points, or 1.50%, to 23,165.70.
In the broader market, the S&P BSE Mid-Cap index declined 1.04%, and the S&P BSE Small-Cap index rose 0.07%.
The market breadth was strong. On the BSE, 2,707 shares rose and 1,344 shares fell. A total of 144 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 8.37% to 13.78.
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.
Buzzing Index:
The Nifty Realty index fell 3.11% to 824.85. The index slipped 3.10% in two consecutive trading sessions.
Godrej Properties (down 4.14%), Prestige Estates Projects (down 3.97%), Oberoi Realty (down 3.88%), Macrotech Developers (down 3.23%), and Anant Raj (down 2.9%) were the top losers. Among the other losers were Phoenix Mills (down 2.57%), DLF (down 2.56%), Raymond (down 2.08%), Sobha (down 1.95%), and Brigade Enterprises (down 1.86%) declined.
Auto Sales Impact:
Mahindra & Mahindra shed 0.97%. The company's overall auto sales grew by 22.63% to 83,894 vehicles sold in March 2025 as against 68,413 vehicles sold in March 2024.
Eicher Motors fell 0.87%. The company reported a 33.71% increase in total motorcycle sales to 101,021 units in March 2025 from 75,551 units sold in March 2024.
TVS Motor Company rose 1.22% after the company's total sales jumped 17% to 414,687 units in March 2025 as against 354,592 units in March 2024.
Maruti Suzuki India shed 0.58%. The company announced that its total sales increased 3.09% to 1,92,984 units in March 2025 as compared with 187,196 units sold in March 2024.
Ashok Leyland added 2.39% after the company reported a 5.82% rise in total commercial vehicle sales to 24,060 units in March 2025 from 22,736 units sold in March 2024.
Atul Auto surged 11.74% after its total sales grew by 18.06% to 3,693 units in March 2025 as against 3,128 units sold in March 2024.
SML Isuzu soared 6.96% after the company said that it has sold 2,315 units in March 2025, registering a growth of 23.9% from 1,868 units sold in the same period last year.
Steel Strips Wheels (SSWL) jumped 5.10% after the company reported a net turnover of Rs 433.70 crore for March 2025, registering a 27.29% YoY growth compared to Rs 340.72 crore posted in March 2024.
VST Tillers Tractors tumbled 5.23%. The company's total sales surged 63.63% to 7,892 units in March 2025 from 4,823 units sold in March 2024.
Escorts Kubota shed 0.89%. The tractor manufacturer announced that its agri-machinery business division sales grew by 15.03% to 11,374 units in March 2025 as against 9,888 units sold in March 2024.
Stocks in Spotlight:
Vodafone Idea (VIL) zoomed 20.15% after the Government of India decided to convert Rs 36,950 crore of the company's outstanding spectrum auction dues into equity at Rs 10 per share.
As part of the agreement, Vodafone Idea will issue 3,695 crore equity shares at a face value of Rs 10 per share, with pricing based on the volume-weighted average price of either the last 90 trading days or 10 days preceding the relevant date (February 26, 2025). The Rs 10 conversion price represents a 46.84% premium to VIL's previous closing price of Rs 6.81. The issuance remains subject to SEBI approval.
Transrail Lighting jumped 5.28% after the company announced that it has secured a new order worth Rs 240 crore for the construction of a transmission line in the international market.
Karur Vysya Bank gained 2.18% after its total business climbed 14.08% to Rs 186,564 crore as of 31 March 2025 as against Rs 163,536 crore recorded in the same period last year.
Bharat Electronics dropped 3% after the company reported order inflows of Rs 18,715 crore for the financial year 2024-25, falling short of its projected target of Rs 25,000 crore.
During its Q3 FY25 conference call, BEL's management guided analysts towards achieving the Rs 25,000 crore order target, but actual inflows remained below expectations. As on 1 April 2025, BEL's total order book stands at around Rs 71650 crore, including export order book of $359 million.
Larsen & Toubro Technology Services rose 1.09% after the company has signed a deal worth '50 million with a prominent European automotive original equipment manufacturer (OEM).
Hindustan Aeronautics rose 1.16% after it signed two contracts with the Ministry of Defence for the supply of 156 Light Combat Helicopters (LCH), Prachand, along with training and other associated equipment, worth Rs 62,700 crore.
ITC shed 0.77% while Aditya Birla Real Estate declined 0.81%. ITC said that it has signed a business transfer agreement (BTA) with Aditya Birla Real Estate (ABREL) to acquire the pulp & paper products business, Century Pulp & Paper (CPP), for lumpsum consideration of upto Rs 3,498 crore.XIV (Bain Capital) in partnership with the existing promoters who will continue to stay fully invested.
Wockhardt surged 2.08% after the company announced that its novel antibiotic Zaynich (Zidebactam/Cefepime, WCK 5222) successfully treated a US pediatric cancer patient suffering from a severe, drug-resistant infection.
Global Markets:
US Dow Jones index futures were down 169 points, indicating a negative opening in the US stocks today.
European markets traded higher on Tuesday as annual euro zone inflation fell to 2.2% in March, according to flash data from statistics agency Eurostat. The March figure is slightly below the 2.3% final reading of February.
So called core-inflation, which excludes more volatile food, energy, alcohol, and tobacco prices, edged lower to 2.4% in March from 2.6% in February. The closely watched services inflation print, which had long been sticky around the 4% mark, also fell to 3.4% in March from 3.7% in the preceding month.
The figures, which are harmonized across the euro area for comparability, boosted expectations for a further 25-basis-point interest rate cut from the European Central Bank during its upcoming meeting on April 17.
Separately on Tuesday, data also showed that the seasonally adjusted unemployment rate in the euro area in February hit 6.1%, continuing on its recent downward trend.
Most Asian stocks ended higher, recovering from a sharp sell-off in the previous session 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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