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EQUITY
Post Session: Quick Review
Apr-01-2025

Indian equity markets faced heavy selling pressure on the first trading session of the financial year 2025-26. Both indices, Nifty and Sensex, settled with a loss of around 1.5% each, reflecting broad-based declines across various sectors. Indices made a negative start as traders were cautious ahead of U.S. reciprocal tariff announcements on April 2. During the afternoon session, the markets slipped further into the deep red and ended the day lower, amid foreign fund outflows.

Some of the important factors in today’s trade:

India’s external debt rises 10.7% to $717.9 billion: Investors were worried as Finance ministry in its latest report has said that India's external debt increased by 10.7 per cent to $717.9 billion at the end of December 2024 from $648.7 billion in December 2023.

Core sector growth slows to 5-month low at 2.9% in February 2025: Traders were cautious with the Ministry of Commerce & Industry’s latest data showed that the output of eight key infrastructure sectors slowed down to a five-month low of 2.9 per cent in February 2025, as against 7.1 per cent growth registered a year ago. 

India’s CAD rises to $11.5 billion in Q3 FY25: Some concern also came as RBI data showed India's current account deficit (CAD) inched up to $11.5 billion, or 1.1 per cent of GDP, in the December quarter from $10.4 billion (1.1 per cent of GDP) in the year-ago period, mainly due to higher trade deficit. 

Global front: European markets were trading in the green as investors digested regional business activity data, the euro area unemployment report, and the preliminary report on Eurozone inflation. Asian markets ended mostly in the green as China's manufacturing sector expanded at the fastest pace in four months in March as output accelerated on the back of a sustained improvement in new orders. 

The BSE Sensex ended at 76024.51, down by 1390.41 points or 1.80% after trading in a range of 75912.18 and 77487.05. There were 2 stocks advancing against 27 stocks declining on the index, while one stock remained unchanged. (Provisional)

The broader indices ended mixed; the BSE Mid cap index fell 1.04%, while Small cap index was up by 0.07%. (Provisional)

The few gaining sectoral indices on the BSE were Telecom up by 2.02% and Oil & Gas up by 0.62%, while Realty down by 3.05%, Consumer Durables down by 2.51%, IT down by 2.24%, TECK down by 1.73% and Bankex down by 1.50% were the top losing indices on BSE. (Provisional)

The few gainers on the Sensex were Indusind Bank up by 5.07% and Eternal up by 0.84%. On the flip side, HCL Technologies down by 3.66%, Bajaj Finserv down by 3.19%, HDFC Bank down by 3.14%, Bajaj Finance down by 2.71% and Infosys down by 2.56% were the top losers. (Provisional)

Meanwhile, the Care Edge Ratings has asserted that the Reserve Bank of India’s (RBI) monetary policy committee is expected to shift its focus from concerns around inflation to supporting growth in its next review meeting in early April. The rating agency in a report said the monetary policy committee will go for another 25-basis-point reduction in the repo rate at April 7-9 meeting. It also anticipates RBI to maintain a ‘neutral’ stance amidst global headwinds.

The report said ‘We expect the policy statement to have a dovish undertone, even while remaining cautious about global developments’. The upcoming monetary policy meeting in April takes place amid a significant moderation in headline inflation over recent months, aided by lower food inflation. In February, the RBI unanimously lowered the repo rate by 25 basis points from 6.5 per cent to 6.25 per cent, in what was the first rate cut in about 5 years since Covid.

According to Care Edge, inflation is expected to remain closer to the RBI’s 4 per cent target over the next three quarters. Retail inflation fell to 3.6 per cent in February, marking the lowest level in seven months. The sustained decline in food and beverage inflation contributed to this lower inflation rate. Inflation in the food and beverages category decreased to 3.8 per cent in February, down from a peak of 9.7 per cent in October 2025, marking the lowest figure since May 2023. Vegetable inflation is also under control. 

The CNX Nifty ended at 23165.70, down by 353.65 points or 1.50% after trading in a range of 23136.40 and 23565.15. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 5.05%, Trent up by 4.56%, Bajaj Auto up by 1.45%, HDFC Life Insurance up by 1.31% and JIO Financial Services up by 1.28%. On the flip side, HCL Technologies down by 3.63%, Bharat Electronics down by 3.46%, Bajaj Finserv down by 3.26%, HDFC Bank down by 3.16% and Bajaj Finance down by 2.77% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 354.7 points or 1.58% to 22,518.19, France’s CAC rose 91.42 points or 1.16% to 7,882.13 and UK’s FTSE 100 increased 81.95 points or 0.95% to 8,664.76.

Asian markets settled mostly higher on Tuesday, despite worries about the economic impacts of trade war and tariffs. Meanwhile, markets were awaiting more details on US President Donald Trump's reciprocal tariff announcements set to be announced on Wednesday. Donald Trump is expected to unveil tariffs targeting all countries, not just specific nations as previously planned. Chinese and Hong Kong shares rose due to China's upbeat manufacturing data and Trump said he expected a deal regarding the sale of TikTok's US operations to be finalized by the weekend. Data showed that the Caixin China General Manufacturing PMI increased to 51.2 in March from February's 50.8, surpassing market expectations of 51.1. Japanese shares gained marginally after Japan’s Prime Minister Shigeru Ishiba said the country will keep up a strong push for the United States to exempt it from auto tariffs, while vowing to take the necessary steps to cushion the blow to the economy and jobs. Seoul shares jumped after South Korea's Constitutional Court said it will deliver its ruling on President Yoon Suk Yeol's impeachment this Friday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,348.44

12.69

0.38

Hang Seng

23,206.84

87.26

0.38

Jakarta Composite

--

--

--

KLSE Composite

--

--

--

Nikkei 225

35,624.48

6.92

0.02

Straits Times

3,968.85

-3.58

-0.09

KOSPI Composite

2,521.39

40.27

1.60

Taiwan Weighted

21,280.17

584.27

2.75
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