Key gauges end on strong note

Indian equity benchmarks ended on a strong note, buoyed by positive global cues. The day saw widespread buying across sectors, with Metal and Basic Materials stocks leading the gains. The U.S. decision to defer tariffs for all countries except China eased recession concerns, boosting sentiment and lifting fears of a global slowdown.  

Some of the important factors in today’s trade: 

India, Russia strengthening bilateral investment ties with six new strategic projects: Strengthening economic ties, India and Russia have agreed on six new strategic projects aimed at enhancing bilateral investment cooperation during the eighth Session of the India-Russia Working Group on Priority Investment Projects. 

US pauses additional 26% tariff on India for 90 days: The White House executive orders noted that the US has suspended the additional tariffs on India for 90 days until July 9, 2025. This suspension of tariffs is not applicable to China, including Hong Kong and Macau. However, according to a trade expert, the 25 per cent duty on steel, aluminium (effective from March 12), auto and auto components (from April 3) also continues.

Rupee surges against US Dollar: Indian rupee surged against the greenback due to a sharp correction in the US dollar and a strong rebound in the domestic equity markets.

Services firms expect improvement in business situation, turnover in Q1 FY26: The RBI’s survey has stated that services firms expect improvement in overall business situation and turnover in Q1:2025-26. The job landscape is also expected to expand but cost pressures are likely to increase in Q1:2025-26.

Moody's Analytics revises India's GDP growth forecast to 6.1% for 2025: Amid looming higher US reciprocal tariff threats, Moody's Analytics in its report titled 'APAC Outlook: U.S. Versus Them' has revised India's Gross Domestic Product (GDP) growth forecast to 6.1 per cent for 2025 from 6.4 per cent in its March baseline. 

Global front: European markets were trading mostly in green even as concerns about a trade war between the U.S. and China persist. Asian markets settled mixed on Friday amid report that U.S. President Donald Trump paused most of his sweeping reciprocal tariffs for 90 days to allow more time for negotiations but raised the levies on China to 125 percent, further escalating a high-stakes confrontation between the world's two largest economies. 

Finally, the BSE Sensex rose 1310.11 points or 1.77% to 75,157.26, and the CNX Nifty was up by 429.40 points or 1.92% to 22,828.55.   

The BSE Sensex touched high and low of 75,467.33 and 74,762.84 respectively. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.84%, while Small cap index was up by 3.04%.

The top gaining sectoral indices on the BSE were Metal up by 4.29%, Basic Materials up by 3.40%, Consumer Durables up by 2.92%, Utilities up by 2.76% and Power up by 2.64%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Tata Steel up by 4.91%, Power Grid Corporation up by 3.72%, NTPC up by 3.25%, Kotak Mahindra Bank up by 2.85% and Reliance Industries up by 2.84%. On the flip side, Asian Paints down by 0.76% and TCS down by 0.43% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) Founder Ajay Srivastava has said that imposition of steep 125 per cent tariffs on China by the US could help Indian products become more competitive in the US market, especially in sectors where India competes directly with China, such as textiles, leather goods, engineering items, and electronics. In these segments, India competes directly with China.

However, GTRI Founder said the benefits may be short-lived unless India proactively leverages this breathing space to strengthen its export ecosystem, streamline compliance processes, and enhance engagement with US buyers. He suggested that the government reintroduce interest equalisation scheme to help small firms with access to cheaper working capital credit and customs expediting shipments.

He further said the 90-day suspension of country-specific tariffs, as outlined in the new executive order, offers a small window of opportunity for Indian exporters. He said while Chinese goods now face steep tariffs of up to 125 per cent, imports from India will be subject to a flat 10 per cent additional duty, significantly lower than the earlier punitive rates proposed under the April 2 order. He asked the Indian exporters to carefully review the latest US executive order and customs guidelines to understand which products will face new tariffs and which may be exempt and the timelines. 

He said according to the modifications in the order, if a product contains at least 20 per cent US made components, only the non-US portion will be taxed, provided the value breakdown is clearly declared. He clarified that items already en-route to the US before April 5 and entering by May 27 will not face the new duties. Goods shipped between April 5 and April 9 will be charged a flat 10 per cent, avoiding steeper country-specific tariffs.

The CNX Nifty traded in a range of 22,923.90 and 22,695.40. There were 46 stocks advancing against 3 stocks declining, while 1 stock remained unchanged on the index.   

The top gainers on Nifty were Hindalco up by 6.70%, JSW Steel up by 4.99%, Tata Steel up by 4.95%, Coal India up by 4.60% and JIO Financial Services up by 4.29%. On the flip side, Asian Paints down by 0.75%, Apollo Hospital down by 0.53% and TCS down by 0.26% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 68.95 points or 0.87% to 7,982.20 and France’s CAC rose 2.66 points or 0.04% to 7,128.68, while Germany’s DAX lost 121.73 points or 0.59% to 20,441.00.

Asian markets settled mixed on Friday tracking Wall Street’s overnight fall amid an intensifying trade conflict between the United States and China after the White House confirmed that the cumulative tariff rate on China would actually total 145%. Chinese and Hong Kong shares gained as market participants awaited the outcome of a Thursday meeting planned by China's top leaders to discuss additional economic stimulus to counter the impact of an escalating trade war. Japanese shares declined as a stronger yen hurt export-related shares. Meanwhile, market participants were closely watching for further insights into the Fed’s monetary policy outlook ahead of the US producer price report later today.