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Indian indices manage to keep heads above water in late morning
Mar-06-2025

In a highly volatile session, Indian equity benchmarks managed to keep their heads above water in late morning session, with both Sensex and Nifty marginally higher, supported by positive cues from other Asian markets, as the Trump administration granted one-month tariff exemption for U.S. automakers from Mexico and Canada amid trade war fears. Adding some relief among traders, Prime Minister Narendra Modi said that the Union Budget 2025-26 paves the way for a strong workforce and a growing economy with investments prioritized equally across infrastructure, industries, people, economy, and innovation. Besides, the Reserve Bank of India (RBI) has come up with more measures including the purchase of government bonds under open market operations (OMO) and foreign currency swaps, with an aim to ease the tight liquidity conditions in the banking system.

On the global front, Asian markets were trading mostly in green, after South Korea consumer price inflation softened in February. The data from Statistics Korea showed that the consumer price index rose 2.0 percent on a yearly basis in February, slower than the 2.2 percent rise in January. The rate came in line with expectations. On a monthly basis, the CPI grew 0.3 percent, following January's 0.7 percent increase in January.

The BSE Sensex is currently trading at 73805.57, up by 75.34 points or 0.10% after trading in a range of 73415.68 and 74308.59. There were 14 stocks advancing against 15 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.60%, while Small cap index was up by 1.41%.

The top gaining sectoral indices on the BSE were Metal up by 1.73%, Energy up by 1.46%, Oil & Gas up by 1.13%, Basic Materials up by 1.10% and Healthcare up by 0.96%, while Telecom down by 0.19%, TECK down by 0.18%, Consumer Durables down by 0.16%, Realty down by 0.09% and IT down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 3.48%, Axis Bank up by 2.06%, Tata Steel up by 2.02%, Hindustan Unilever up by 1.95% and Reliance Industries up by 1.47%. On the flip side, Power Grid down by 1.30%, Tech Mahindra down by 1.08%, Ultratech Cement down by 0.93%, Kotak Mahindra Bank down by 0.93% and ITC down by 0.73% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has come up with more measures including the purchase of government bonds under open market operations (OMO) and foreign currency swaps, with an aim to ease the tight liquidity conditions in the banking system. 

The RBI’s decision to inject liquidity into the banking system has been taken on a review of current and evolving liquidity conditions. As part of the measures, the RBI will conduct OMO purchase auctions of Government of India securities for an aggregate amount of Rs 1,00,000 crore in two tranches of Rs 50,000 crore each to be held on March 12, 2025 and March 18, 2025.

The central bank will also conduct USD/INR Buy/Sell Swap auction of $10 billion for a tenor of thirty-six months to be held on March 24, 2025. The RBI further noted that it will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.

The CNX Nifty is currently trading at 22374.55, up by 37.25 points or 0.17% after trading in a range of 22245.85 and 22491.30. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 3.46%, Hindalco up by 2.54%, BPCL up by 2.40%, Axis Bank up by 2.16% and Tata Steel up by 2.09%. On the flip side, Trent down by 1.85%, Power Grid down by 1.15%, Tech Mahindra down by 1.04%, HDFC Life Insurance down by 0.93% and Ultratech Cement down by 0.87% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 670.51 points or 2.84% to 24,264.72, Jakarta Composite gained 107.32 points or 1.62% to 6,638.72, Shanghai Composite strengthened 36.52 points or 1.09% to 3,378.48, Straits Times rose 24.12 points or 0.62% to 3,922.52, KOSPI increased 10.76 points or 0.42% to 2,568.89 and Nikkei 225 surged 288.59 points or 0.77% to 37,706.83, while Taiwan Weighted lost 156.47 points or 0.69% to 22,715.43.
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