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Sensex, Nifty trade tad higher amid foreign fund inflows, easing retail inflation
Apr-16-2025

Indian equity benchmarks made flat-to-positive start on Wednesday and soon turned volatile amid weak global cues. Sensex and Nifty are trading tad higher in early deals amid foreign fund inflows. Foreign institutional investors (FIIs) staged a strong comeback on April 15, infusing Rs 6,065.78 crore into Indian equities - their largest net purchase since March 27. Some optimism came as retail inflation dipped marginally to a nearly six-year low of 3.34 per cent in March due to decline in prices of vegetables, eggs and protein-rich items, raising hope for a third rate cut by the RBI as it remains below the median target of 4 per cent. Besides, the India Meteorological Department (IMD) has predicted an above normal monsoon in 2025, which quantitatively could be 105 per cent of the Long Period Average (LPA). However, upside remained capped as India's trade deficit increased sharply in March 2025 to $3.63 billion, as against $1.92 billion in the same month of 2024.

On the global front, Asian markets are trading mostly lower, following the broadly negative cues from Wall Street overnight, as traders remain cautious amid the continuing uncertainty prevailing over the size and the scope of the new reciprocal tariffs on imports in to the US. The lingering concerns over the effects of U.S.-China trade war continues to weigh on market sentiment.

Back home, banking stocks are in focus as domestic rating agency Crisil estimated bank credit growth will accelerate to up to 13 per cent in FY26 from 11 per cent in FY25. The credit growth will be on the back of supportive regulatory measures undertaken recently, a boost to consumption from tax cuts and softer interest rates. In stock specific development, Aster DM Healthcare traded higher after the Competition Commission of India granted approval for the proposed merger of Quality Care India with the company.

The BSE Sensex is currently trading at 76830.35, up by 95.46 points or 0.12% after trading in a range of 76569.59 and 77000.63. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.44%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Bankex up by 0.79%, Realty up by 0.59%, Industrials up by 0.59%, Power up by 0.58% and Capital Goods up by 0.56%, while Metal down by 0.49%, Auto down by 0.25%, IT down by 0.20%, Energy down by 0.18% and TECK down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.32%, Indusind Bank up by 1.07%, Kotak Mahindra Bank up by 0.97%, SBI up by 0.62% and ITC up by 0.61%. On the flip side, Maruti Suzuki down by 1.36%, Eternal down by 1.17%, Infosys down by 1.01%, Sun Pharma down by 0.92% and Tata Steel down by 0.81% were the top losers.

Meanwhile, the commerce ministry has said that the government set up an inter-ministerial import surge monitoring group as high tariffs on certain countries like China and Vietnam may lead to diversion of goods to India. It also said that Chinese retaliatory tariffs on US goods could further increase the inflow of US agricultural products into India. Additional Secretary in the Department of Commerce L Satya Srinivas said ‘with the global uncertainties related to tariffs, obviously there are elevated apprehensions related to likely flooding or surge in imports or surge...to look at that...import surge monitoring group has been set up’. If any unusual surge is reported, the commerce ministry can take action such as imposing anti-dumping or safeguard duties.

He said the group is monitoring weekly as well as monthly trends by commodities and by countries. He added ‘If there is any unusual surge, we would like to understand the reasons’. Representatives from the department, DGFT (Directorate General of Foreign Trade), CBIC (Central Board of Indirect Taxes and Customs), and Department for Promotion of Industry and Internal Trade (DPIIT) are in the group. Officials from other ministries are also being consulted when required.

 According to the ministry, a recent assessment highlighted the risk of merchandise dumping into India due to reciprocal tariffs amid global trade tensions. It said ‘Rising US costs may prompt exporters from countries like China, Vietnam and Indonesia, all facing US trade deficits to divert goods to India, potentially triggering import surges’. The US has imposed whopping 145 per cent tariffs on Chinese goods. In retaliation, China has imposed 125 per cent in American goods, triggering a trade war.

The CNX Nifty is currently trading at 23346.65, up by 18.10 points or 0.08% after trading in a range of 23277.00 and 23364.90. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Trent up by 1.91%, HDFC Life Insurance up by 1.71%, Axis Bank up by 1.47%, Indusind Bank up by 0.96% and Apollo Hospital Ent. up by 0.92%. On the flip side, Maruti Suzuki down by 1.48%, Hindalco down by 1.37%, Bajaj Auto down by 1.26%, Sun Pharma down by 1.04% and Hero MotoCorp down by 0.98% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 543.73 points or 2.53% to 20,922.54, Taiwan Weighted lost 365.13 points or 1.84% to 19,492.54, Nikkei 225 slipped 312.98 points or 0.91% to 33,954.56, Shanghai Composite weakened 30.06 points or 0.93% to 3,237.60, KOSPI dropped 16.31 points or 0.66% to 2,461.10 and Jakarta Composite was down by 5.42 points or 0.08% to 6,436.26, while Straits Times was up by 10.11 points or 0.28% to 3,634.83.
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