Domestic Equity

 

 

• Indian equity markets rebounded, with BSE Sensex (+4.17%) and Nifty 50 (+4.26%) posting strong gains.

 

• Mid-cap and small-cap stocks also rallied, supported by better-than-expected retail sales data from the U.S. and China.

 

• IT and auto stocks faced pressure due to U.S. reciprocal tariff concerns, affecting Infosys, Wipro, Tata Motors, and M&M.

 

• FPIs infused nearly $3 billion into Indian equities in March 2025, benefiting financial and tech stocks. The foreign portfolio investors (FPIs), who have been persistent sellers in India since late-September, were buyers in three of the last four sessions.

 

Global Equity

 

 

• U.S. indices saw marginal gains: S&P 500 (+0.55%), Dow Jones (+0.83%), and Nasdaq 100 (+0.61%).

 

• Japan's Nikkei rose slightly (+0.12%), while Hang Seng (-3.04%), Kospi (-0.97%), Shanghai (-1.03%), and FTSE (-0.27%) declined.

 

• Market movements were influenced by U.S. tariff concerns, economic data, and the Fed's decision to hold rates steady.

 

Debt Market

 

 

• Bond yields fell as the U.S. Federal Reserve maintained interest rates and hinted at two rate cuts later in 2025.

 

• Indian 10-year benchmark yield (6.79% GS 2034) dropped by 7 bps to 6.63%, driven by strong demand for domestic bonds and expectations of an RBI rate cut in April.

 

Macroeconomic Update

 

• India's trade deficit narrowed to $14.05 billion in Feb 2025 from $19.51 billion in Feb 2024.

 

• Exports fell 10.87% YoY to $36.91 billion, while imports declined 16.35% YoY to $50.96 billion.

 

• WPI-based inflation rose to an 8-month high of 2.38% in Feb 2025, driven by rising prices in food products, textiles, and non-food articles.

 

Commodity Update

 

 

• COMEX Gold gained over 2% for the fourth consecutive week as trade tensions fueled safe-haven demand.

 

• COMEX Silver surged nearly 3% due to escalating U.S.-China tariff concerns.

 

• NYMEX Crude Oil advanced over 1%, driven by geopolitical risks, including potential U.S. sanctions on Iran.

 

 

Best Regards
 

Alpha Research

 

Disclaimer:  The perspectives provided reflect our expectations of the economy, market, and investments, which may or may not materialize. Investors are encouraged to conduct their own due diligence before investing.