Post Session: Quick Review

Indian equity markets closed higher for fifth consecutive session on Monday, with both the Nifty and Sensex surging by over 1%, primarily driven by strong Q4 earnings from major banking stocks, which bolstered market sentiment. Indices made a positive start and extended their gains throughout the day, as traders took support as data with the depositories showed foreign investors have infused nearly Rs 8,500 crore in the country's equity markets last week. Traders were closely monitoring Q4FY25 earnings. 

Some of the important factors in trade:

India’s forex reserves rise to $677.8 billion: 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. 

RBI to remain 'agile & proactive' in policy action: Some support also came with Reserve Bank of India (RBI) Governor Sanjay Malhotra’s statement that the central bank will continuously monitor the rapidly evolving global situation and remain 'agile and proactive' in its policy actions.

India, US trade agreement talks gain pace: Traders took some support as 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.

Global front: Asian markets ended mixed amid progress in tariff discussions between the Trump administration and other major economies. Meanwhile, the People's Bank of China left its interest rates unchanged for the sixth successive session. European markets are closed on Monday on the account of Easter.

The BSE Sensex ended at 79408.50, up by 855.30 points or 1.09% after trading in a range of 78776.06 and 79635.05. There were 23 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 2.20%, while Small cap index up by 1.67%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.61%, Power up by 2.49%, IT up by 2.31%, Realty up by 2.27% and PSU up by 2.16%, while FMCG down by 0.75% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 4.91%, Indusind Bank up by 4.05%, Power Grid up by 3.63%, Bajaj Finserv up by 3.51% and Mahindra & Mahindra up by 3.28%. On the flip side, Adani Ports and Special Economic Zone by 1.27%, Hindustan Unilever down by 1.04%, ITC down by 1.01%, Asian Paints down by 0.97% and Nestle down by 0.37% were the top losers. (Provisional)

Meanwhile, the 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 ended at 24125.55, up by 273.90 points or 1.15% after trading in a range of 23903.65 and 24189.55. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 4.73%, Trent up by 4.32%, Indusind Bank up by 4.06%, Power Grid up by 3.56% and Hero MotoCorp up by 3.49%. On the flip side, Adani Ports and Special Economic Zone down by 1.27%, HDFC Life Insurance down by 1.12%, ITC down by 1.01%, Hindustan Unilever down by 0.97% and Asian Paints down by 0.94% were the top losers. (Provisional)

Asian markets settled mostly higher on Monday, buoyed by the risk appetite in the markets amidst optimism surrounding potential developments in trade negotiations. Investor sentiments got boosted after the PBoC held its key loan prime rates steady, signalling its focus to stabilize local currency yuan. Shanghai stocks advanced with the state-backed buying from domestic financial institutions. Bucking the trend, Japan's Nikkie tumbled after the local currency yen got appreciated and weighed down Japan's export-oriented sectors.