Benchmarks end flat with positive bias on Tuesday

Indian equity benchmarks ended little changed with a positive bias in a volatile trade on Tuesday as investors turned cautious amid concerns over geopolitical tensions. However, intense buying in blue-chips Reliance Industries, Tech Mahindra and Eternal along with unabated foreign capital inflows supported the domestic markets.  

Some of the important factors in today’s trade:  

Persistent foreign fund inflows: Foreign investors extended their buying streak to a ninth straight session on Monday, purchasing Indian equities worth Rs 2,474 crore. With the latest inflow, FIIs have now turned net buyers for April, reversing earlier heavy selling of nearly Rs 35,000 crore.  

RBI to inject Rs 1.25 lakh crore liquidity via OMO purchase in May: The RBI is all set to inject more liquidity into the banking system through the purchase of Government bonds for an aggregate amount of Rs 1.25 lakh crore in May. The decision was taken after a review of current and evolving liquidity conditions.

Climate change may lead to increased probability of defaults: RBI deputy governor M Rajeshwar Rao said that climate change would lead to additional operational costs for borrowers with an increased possibility of a loss of their assets, leading to an increased probability of default by borrowers.

Indian auto component stocks were in focus: ICRA said that leading auto component manufacturers could take a revenue hit of up to Rs 4,500 crore in the current fiscal due to dip in overseas shipments stemming from the tariff-related impact.  

Positive global cues: European markets were trading mostly in green as easing concerns about U.S. tariffs, and data showing an improvement in German consumer sentiment contributed to the positive sentiment in the market. Asian markets ended mostly in green as investors looked for signs of progress on the global trade front.  

Finally, the BSE Sensex rose 70.01 points or 0.09% to 80,288.38, and the CNX Nifty was up by 7.45 points or 0.03% to 24,335.95.       

The BSE Sensex touched high and low of 80,661.31 and 80,122.02 respectively. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.23%, while Small cap index was up by 0.09%. 

The top gaining sectoral indices on the BSE were IT up by 1.13%, Capital Goods up by 0.94%, TECK up by 0.76%, Industrials up by 0.70% and Consumer Durables up by 0.60%, while Utilities down by 1.06%, Metal down by 0.99%, Healthcare down by 0.81%, Power down by 0.75%, Basic Materials down by 0.70% were the losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.32%, Tech Mahindra up by 2.14%, Eternal up by 1.72%, HCL Technologies up by 1.42% and Infosys up by 1.03%. On the flip side, Sun Pharma down by 2.01%, Ultratech Cement down by 1.99%, Power Grid Corporation down by 1.75%, NTPC down by 1.22% and Kotak Mahindra Bank down by 0.93% were the top losers.

Meanwhile, the Retailers Association of India (RAI), basis its survey, has said that a 6 per cent yearly increase in retail sales was reported in March 2025 compared to the same month of 2024. The survey figures point to steady domestic demand at a time when global trade conditions remain unsettled.

It said that North and West India recorded the highest year-on-year growth at 8 per cent each. East and South India followed with a 5 per cent rise. Among categories, food and grocery led with 11 per cent growth, while quick service restaurants (QSR) grew by 9 per cent. Footwear and consumer durables-electronics grew at a slower rate of 2 per cent and 3 per cent, respectively.

It also stated a cautious but steady outlook among retailers, with no significant drops in consumer spending. While concerns remain about the wider impact of global trade tensions, current trends suggest that domestic consumption is largely unaffected.

Kumar Rajagopalan, CEO of RAI, said retail businesses in India reflects growth. However, double digit growth is still eluding the sector. Customers are spending cautiously but are willing to spend on aspirational and innovative products. He added discretionary spending keeps shifting from one category to another and hence no category has been witnessing steady growth month on month.

The CNX Nifty traded in a range of 24,457.65 and 24,290.75. There were 19 stocks advancing against 31 stocks declining on the index.   

The top gainers on Nifty were Trent up by 5.77%, Bharat Electronics up by 3.97%, Tech Mahindra up by 2.29%, Reliance Industries up by 2.20% and Eternal up by 1.74%. On the flip side, Sun Pharma down by 2.25%, Ultratech Cement down by 2.18%, Coal India down by 2.13%, ONGC down by 1.98%, and Dr. Reddy's Lab down by 1.88% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 18.24 points or 0.22% to 8,435.58 and Germany’s DAX gained 147.59 points or 0.66% to 22,419.26, while France’s CAC fell 13.79 points or 0.18% to 7,559.97.

Asian markets ended mostly in green on Tuesday as the White House has confirmed President Trump's plan to reduce tariffs on auto parts for cars made in America following intense lobbying by industrial leaders. Seoul stocks ended higher for a third day running, with auto and bio stocks leading the surge ahead of quarterly earnings reports from major companies. However, China's Shanghai Composite index finished lower after U.S. Treasury Secretary Scott Bessent put the burden for trade progress squarely on China, increasing confusion about the status of talks between the two countries. Meanwhile, Japanese market was closed for Showa Day holiday. On the economic data front, Singapore's producer prices increased for the fourth straight month in March, though at a slower pace than in the previous two months, data from the Department of Statistics showed. The manufacturing producer price index rose 3.3 percent year-on-year in March, slower than the 6.0 percent increase in February.