Key gauges end higher on monthly expiry day

Indian equity benchmarks rebounded on the monthly expiry day, gaining nearly half a percent on Thursday, after falling sharply in the previous session as continuous foreign fund inflows and buying in blue-chip Bajaj Finserv, Indusind Bank and NTPC supported the recovery. However, selling in auto counters and subdued pharma stocks amid uncertainties over Trump tariffs limited the gains in domestic equities.  

Some of the important factors in today’s trade:

Sustained foreign fund inflows: According to exchange data, foreign institutional investors (FIIs) continued their buying streak for the fifth straight session, picking up Rs 2,240.55 crore worth of Indian equities on March 26, even as markets turned sharply lower.

India's exports are bound to grow in coming years despite global uncertainties: Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi has said that India's exports are bound to grow in the coming years despite uncertainties over global trade and tariff. Sarangi said that exporters should tread the path pragmatically and wisely to navigate the current global trade contours. 

India, US holding very active and intense discussions on trade: External Affairs Minister S Jaishankar has said that India and the US are holding ‘very active’ and ‘intense’ discussions on trade, as the world waits with anxiety over US President Donald Trump's reciprocal tariff that will kick in on April 2, 2025. 

Rupee falls against US Dollar: Indian rupee weakened against the US dollar, as month-end dollar demand from importers, coupled with the greenback's recovery against major currencies, weighed on the rupee.

Global front: European markets were trading lower amid concerns about the impact of Trump's reciprocal tariffs. Asian markets settled mostly higher, despite ongoing concerns about the heightening trade war and the potential impact on inflation and global growth after U.S. President Donald Trump announced 25 percent tariffs on auto and auto parts starting next week. 

Finally, the BSE Sensex rose 317.93 points or 0.41% to 77,606.43, and the CNX Nifty was up by 105.10 points or 0.45% to 23,591.95.  

The BSE Sensex touched high and low of 77,747.46 and 77,082.51 respectively. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.46%, while Small cap index was up by 0.90%.

The top gaining sectoral indices on the BSE were Utilities up by 2.09%, Realty up by 1.38%, PSU up by 1.36%, Oil & Gas up by 1.32% and Energy up by 1.22%, while Auto down by 0.99% and Telecom down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.23%, Indusind Bank up by 2.68%, NTPC up by 1.88%, Larsen & Toubro up by 1.76% and Ultratech Cement up by 1.40%. On the flip side, Tata Motors down by 5.56%, Sun Pharma down by 1.41%, Kotak Mahindra Bank down by 0.95%, Bharti Airtel down by 0.82% and HCL Technologies down by 0.40% were the top losers.

Meanwhile, the Monthly Economic Review by the Department of Economic Affairs (DEA), Ministry of Finance has said that the Indian economy is estimated to achieve a growth of 6.5 per cent in FY25 despite considerable external headwinds. The Monthly Economic Review added that the performance of the economy in the past quarters was driven by strong agricultural and service sector performance on the supply side and a steady increase in consumption and core merchandise and services exports on the demand side. The DEF said ‘Geopolitical tensions, trade policy uncertainties, volatility in international commodity prices and financial market uncertainties pose considerable risks to the economic growth outlook, globally and locally. One offsetting positive is the outlook for commodity prices. Domestic private sector capital formation, focused on India’s solid fundamentals and economic prospects, will be an important driver of economic growth in FY26’. The review document added that all sectors are estimated to grow close to their trend rates.

The monthly review added retail inflation eased to 3.6 per cent in February 2025 on the back of recent benign price trends of food items. Food inflation saw a sharp decline, driven by winter season correction in vegetable prices, continued easing of pulse prices and various administrative measures of the government. The DEA added that the estimates of agricultural production suggest a positive outlook for food inflation. The review said in the near full-year data available for FY25, there is a close convergence of actual deficits, critical ratios, and essential expenditures with their budget estimates, indicating a sustained commitment to fiscal targets.

However, the Monthly Economic Review recognised that global trade continues to be affected by uncertainty in the policy environment. The Global Trade Policy Uncertainty Index rose to a record high of 237.4 in Q4 2024. Tariff-related developments in multiple countries have heightened trade-related risks, affecting investment and trade flows globally, the DEF added in the monthly review. Consequently, India’s exports have Supportive fiscal measures, accommodative monetary policy, and the Union Budget’s focus on longer-term development drivers and reform will bolster domestic economic resilience amidst significant global uncertainties.

The CNX Nifty traded in a range of 23,646.45 and 23,412.20. There were 38 stocks advancing against 12 stocks declining on the index.  

The top gainers on Nifty were Hero MotoCorp up by 3.13%, Bajaj Finserv up by 2.86%, Indusind Bank up by 2.78%, NTPC up by 2.64% and BPCL up by 2.19%. On the flip side, Tata Motors down by 5.47%, Sun Pharma down by 1.40%, Eicher Motors down by 1.04%, Apollo Hospitals Enterprise down by 0.76% and Bharti Airtel down by 0.72% were the top losers.  

European markets were trading lower; UK’s FTSE 100 decreased 47.22 points or 0.54% to 8,642.37, France’s CAC fell 30.13 points or 0.38% to 8,000.55 and Germany’s DAX lost 169.31 points or 0.74% to 22,669.72.

Asian markets settled mostly higher on Thursday, despite Wall Street’s fall overnight on concern over the economic impact after the US President Donald Trump unveiled a 25% tariff on imported vehicles, expanding a global trade war and testing already strained ties with allies. Mainland Chinese and Hong Kong shares rose led by tech and auto shares. US President Donald Trump said on Wednesday he would be willing to reduce tariffs to get a deal done with TikTok's Chinese parent ByteDance to sell the short video app used by 170 million Americans. Meanwhile, Chinese major industrial firms’ profits showed improvement in the first 2 months of 2025.