Markets trade with traction in early deals

Indian equity benchmarks made slightly positive start on Monday amid mixed Asian cues. Soon, markets gained traction and are trading firm in early deals led by gains in IT and Banking stocks with earnings from key players driving markets. Besides, the ongoing inflow from Foreign Institutional Investors (FIIs) boosted markets sentiment. Some support came as RBI said that India's forex reserves increased by $1.567 billion to $677.835 billion for the week ended April 11. This is the sixth consecutive week of a rise in the kitty. Meanwhile, India and US trade negotiations are progressing. Discussions will begin on April 23 in Washington. India aims for an early agreement during the 90-day tariff pause. Both countries have finalized the agreement's terms. They want to double trade to $500 billion by 2030.

On the global front, Asian markets are trading mixed after a long holiday weekend, with markets in Hong Kong, Australia and New Zealand shut due to the Easter holiday, following the mixed cues from Wall Street on Thursday, amid progress in tariff discussions between the Trump administration and other major economies. Back home, edible oil industry stocks are in focus as Solvent Extractors' Association of India said that India's oilmeals exports witnessed a significant decline, dropping 21% to Rs 12,171 crore in the last fiscal year, primarily due to an 11% decrease in sales volumes.

The BSE Sensex is currently trading at 79149.57, up by 596.37 points or 0.76% after trading in a range of 78776.06 and 79196.53. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.14%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were IT up by 1.84%, Bankex up by 1.78%, Oil & Gas up by 1.53%, PSU up by 1.45% and Power up by 1.27%, while FMCG down by 0.60% was the sole losing index on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.83%, Axis Bank up by 2.84%, SBI up by 2.84%, Indusind Bank up by 2.74% and Infosys up by 2.46%. On the flip side, Adani Ports & SEZ down by 2.77%, ITC down by 1.24%, Eternal down by 0.82%, Maruti Suzuki down by 0.74% and Bharti Airtel down by 0.73% were the top losers.

Meanwhile, amid the ongoing tariff war, Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that the central bank will continuously monitor the rapidly evolving global situation and remain 'agile and proactive' in its policy actions. Observing that the Indian economy and the financial markets have demonstrated remarkable resilience, Malhotra cautioned that ‘they are not immune to the vagaries of an uncertain and volatile global environment’. He said ‘In view of the rapidly evolving situation, especially on the global front, we are continuously monitoring and assessing the economic outlook. We will be agile and proactive in our actions on the policy front, as always’. He said the growth-inflation balance has improved significantly and there has been a decisive improvement in headline inflation which is projected to remain aligned to the target of 4 per cent in FY26. However, global uncertainties and weather disturbances pose risks to the inflation outlook.

He added ‘Even though we have projected a somewhat lower real GDP growth for FY26 at 6.5 per cent, India is still the fastest growing economy. Yet, it is much below what we aspire for. We have reduced repo rates twice and provided sufficient liquidity’. On the Indian financial markets, the Governor said all market segments including FX, G-sec, Money Markets, have largely remained stable. He noted while the rupee came under a bit of pressure a few months ago, it has fared better thereafter and regained some lost ground. Equity markets experienced significant correction, as capital outflows accelerated, a trend seen in most emerging markets. The government securities market has, however, remained rock-steady throughout the year.

He further said the gross market borrowings of the central and state governments, totalling Rs 24.7 lakh crore in FY 2024-25, sailed through smoothly. The cost of borrowing for the central government came down by 28 basis points to 6.96 per cent in FY25, from 7.24 per cent in FY24. The secondary market in g-secs continued to be deep and active, partly aided by India's inclusion in global bond indices. In India, Malhotra said markets have evolved within a regulated framework, adapting to changing regulatory philosophies and approaches. He also emphasised that the foreign exchange markets are reasonably liquid with narrow bid-ask spreads and there is growing transparency in this market. The Reserve Bank has recently announced that access to FX Retail will also be provided through the Bharat Connect platform. In the first phase, a pilot to facilitate purchase of US dollars by individuals is planned. Subsequently, its scope will be expanded based on the experience gained.

The CNX Nifty is currently trading at 24030.00, up by 178.35 points or 0.75% after trading in a range of 23903.65 and 24036.00. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.96%, Axis Bank up by 2.86%, SBI up by 2.81%, Indusind Bank up by 2.68% and Infosys up by 2.58%. On the flip side, Adani Ports & SEZ down by 2.85%, HDFC Life Insurance down by 1.31%, ITC down by 1.24%, Maruti Suzuki down by 0.86% and Bharti Airtel down by 0.78% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 428.49 points or 1.23% to 34,301.79, Taiwan Weighted lost 260.1 points or 1.34% to 19,134.93 and Jakarta Composite was down by 22.18 points or 0.34% to 6,416.09. on the other hand, Straits Times rose 38.25 points or 1.03% to 3,758.58, Shanghai Composite strengthened 9.71 points or 0.3% to 3,286.44 and KOSPI was up by 0.79 points or 0.03% to 2,484.21.