Markets start new week on firm note following supportive global cues

Indian equity benchmarks made an optimistic start on Monday, following the broadly positive cues from Wall Street on Friday as well as mostly higher trade in Asian counterparts, on easing global trade tensions amid ongoing tariff talks between the US and some of its partner countries, including China and Japan. Markets are trading firm in early deals, supported by consistent foreign institutional investor (FII) buying. Some support came as Reserve Bank of India (RBI) said that India's foreign exchange reserves rose $8.310 billion to $686.145 billion in the week that ended on April 18, extending gains for the seventh straight week. Some optimism came as registering a year-on-year growth of 6.74 per cent, engineering goods exports from India reached its all-time high of $116.67 billion in fiscal 2024-25. Meanwhile, investors are closely eyeing the Index of Industrial Production (IIP) data to be out later in the day. In stocks specific development, Mahindra & Mahindra rose after it signed a pact to acquire 58.96 percent stake in SML Isuzu for Rs 555 crore. Shares of the latter tumbled 10 percent.

The BSE Sensex is currently trading at 79772.45, up by 559.92 points or 0.71% after trading in a range of 79341.35 and 79932.83. 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 0.67%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were Energy up by 1.46%, Oil & Gas up by 1.35%, Consumer Durables up by 1.24%, PSU up by 1.22% and Capital Goods up by 1.13%, while IT down by 0.75% and TECK down by 0.46% were the only losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.60%, Mahindra & Mahindra up by 1.83%, ICICI Bank up by 1.62%, Bajaj Finserv up by 1.57% and Tata Motors up by 1.22%. On the flip side, HCL Technologies down by 2.31%, Tech Mahindra down by 1.00%, TCS down by 0.62%, Maruti Suzuki down by 0.61% and Nestle down by 0.59% were the top losers.

Meanwhile, expressing an optimism over India’s growth prospects, the Reserve Bank of India (RBI) Governor Sanjay Mahlhotra has said that policy continuity and stability, financial stability, fiscal prudence and efficiency, thrust on infrastructure, renewed focus on manufacturing, demographic dividend, innovation, continued focus on Ease of Doing Business and reforms, digitalisation are among factors that will push India’s growth trajectory over the medium to long-term. He said that the Indian economy has demonstrated remarkable resilience and dynamism. Over the past four years (2021-22 to 2024-25), it has recorded an average annual growth rate of 8.2 per cent.

The central bank chief noted that ‘It was and continues to be the fastest-growing major economy in the world’. He added ‘This is a significant step up from the average growth rate of 6.6 per cent in the preceding decade (2010 to 2019).’ He supplemented ‘Even this year, our growth is expected to remain robust at 6.5 per cent. This is despite the tremendous increase in uncertainty and volatility in global financial markets. While this rate is lower than in recent years and falls short of India’s aspirations, it remains broadly in line with past trends and the highest among major economies’.

Over the last ten years, India has leapfrogged from the tenth-largest economy to the fifth-largest. India is poised to become the third-largest economy shortly. Citing research that shows political and policy stability is a prerequisite for long-term investment planning to fuel growth in any economy, the RBI Governor said India’s vibrant democracy has ensured the same over the decades. Explaining India’s financial stability, he said the country’s financial sector is strong and vibrant, efficiently catering to the funding requirements of various economic agents. The Indian capital markets - equity and debt - have increasingly deepened, providing avenues for market-based funding to businesses. India’s capital markets have witnessed record participation from retail and institutional investors, channelising savings into productive investments. 

Elaborating on fiscal prudence and efficiency, he said India continues to demonstrate fiscal prudence to foster faster and inclusive growth. On the manufacturing front, he stated that India is focused on achieving self-reliance in manufacturing. Furthermore, when discussing digitalisation, he placed particular emphasis on UPI’s growth. In conclusion, he stated that India continues to be an economy supported by stability - both monetary, financial, and political; policy consistency and certainty; a congenial business environment; and strong macroeconomic fundamentals. He added at a time when many advanced economies are facing economic headwinds and a deteriorating economic outlook, India continues to offer strong growth and stability, making it a natural choice for investors seeking long-term value and opportunity.

The CNX Nifty is currently trading at 24188.10, up by 148.75 points or 0.62% after trading in a range of 24054.05 and 24227.80. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.59%, Bharat Electronics up by 2.23%, Bajaj Finserv up by 1.68%, Mahindra & Mahindra up by 1.61% and Dr. Reddy's Lab up by 1.55%. On the flip side, Shriram Finance down by 8.07%, HCL Technologies down by 2.23%, Tech Mahindra down by 1.17%, Maruti Suzuki down by 0.81% and Nestle down by 0.70% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 143.6 points or 0.4% to 35,849.34, Taiwan Weighted rose 123.86 points or 0.62% to 19,996.59, Jakarta Composite gained 51.64 points or 0.77% to 6,730.56, Hang Seng advanced 20.37 points or 0.09% to 22,001.11 and KOSPI increased 2.58 points or 0.1% to 2,548.88, while Straits Times fell 16.49 points or 0.43% to 3,807.29 and Shanghai Composite was down by 1.04 points or 0.03% to 3,294.02.