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Mid - Session

Market behaviours during the course of the trading session.

Sensex Nifty under pressure; IT shares decline; VIX spurts 8.31%

01-Apr-25 11:32 Hrs IST

The key domestic indices traded with major cuts in the mid-morning trade, amid concerns over U.S. President Trump's tariff announcements on April 2, which could impact IT demand and overall market sentiment. The Nifty traded below the 23,300 level. IT shares extended losses for the two consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, tanked 1,068.830 points, or 1.38%, to 76,346.09. The Nifty 50 index tumbled 262.10 points, or 1.11%, to 23,257.25.

In the broader market, the S&P BSE Mid-Cap index declined 0.90%, and the S&P BSE Small-Cap index shed 0.09%.

The market breadth was strong. On the BSE, 2,374 shares rose and 1,310 shares fell. A total of 187 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 8.31% to 13.78.

Economy:

Moody's Ratings said India's growth at 6.5% will remain the highest amongst the advanced and emerging G-20 countries, supported by tax measures and continued monetary easing. The report released today said that the country will continue to attract capital and withstand any cross-border outflow. In its report on emerging markets, Moody's said emerging economies are exposed to choppy waters from the churn of US policies. It said economic activity in the fastest-growing economies will slow slightly from high levels but remain strong this year and next.

Meanwhile, India's current account deficit (CAD) rose marginally to $11.5 billion, or 1.1% of gross domestic product (GDP), during the October-December 2024 quarter of the ongoing financial year (Q3FY25) from $10.4 billion, or 1.1% of GDP, a year ago, amid a rise in service exports. Sequentially, CAD moderated from $16.7 billion in Q2FY25, or 1.8% of GDP, the latest data released by the Reserve Bank of India (RBI) showed. The current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country's external sector.

Merchandise trade deficit increased to $79.2 billion in Q3FY25 from $71.6 billion during the same period of FY24. Net services receipts increased to $51.2 billion in Q3FY25 from $45 billion a year ago. Services exports have risen on a y-o-y basis across major categories such as business services, computer services, transportation services, and travel services.

Buzzing Index:

The Nifty IT index slipped 2.20% to 36,073.45. The index tumbled 3.92% in the two consecutive trading sessions.

Persistent Systems (down 3.77%), Infosys (down 3.32%), Oracle Financial Services Software (down 2.91%), HCL Technologies (down 2.4%), Coforge (down 2.19%), Mphasis (down 2.09%), Tata Consultancy Services (down 2.08%), LTIMindtree (down 1.99%), Tech Mahindra (down 1.94%) and Wipro (down 0.76%) declined.

Stocks in Spotlight:

Parag Milk Foods jumped 4.72% after the company's board is scheduled to meet on Thursday, 3rd April 2025, to consider raising funds through various instruments via different modes.

Glenmark Pharmaceuticals fell 1.62%. The company has announced that its USA-based subsidiary, Glenmark Pharmaceuticals Inc., USA (Glenmark), has launched Vancomycin Hydrochloride for Injection USP.

Engineers India rose 0.21%. The company secured prestigious consultancy assignments worth Rs 245 crore from state-owned organizations for executing projects on a cost-plus basis in the states of Maharashtra & West Bengal.

Larsen & Toubro Technology Services rose 1.03% after the company has signed a deal worth '50 million with a prominent European automotive original equipment manufacturer (OEM).

Global Markets:

US Dow Jones index futures were down 116 points, indicating a negative opening in the US stocks today.

Most Asian stocks advanced on Tuesday, recovering from a sharp sell-off in the previous session as investors awaited clarity on U.S. President Donald Trump's tariff rollout.

The Reserve Bank of Australia on Tuesday expectedly held its benchmark policy rate at 4.1%, despite having flagged earlier that inflation was declining at a faster pace than expected. The country's inflation reading in February came in at a softer-than-expected 2.4%.

South Korea's exports grew 3.1% in March, up from 0.7% the previous month, reaching $58.24 billion. However, the growth fell short of the expected 3.5%. Imports increased by 2.3% to $53.29 billion, resulting in a trade surplus of $4.99 billion. Meanwhile, factory activity slightly declined to 49.1 in March from 49.9, reflecting weak domestic demand.

China's Caixin PMI for March came in at 51.2, slightly above February's 50.8 reading. This follows the government PMI data, which showed stronger-than-expected growth in the manufacturing sector.

In the U.S., major indices saw initial losses but rebounded on Monday. The S&P 500 closed 0.55% higher, while the Dow Jones gained 1%. The NASDAQ Composite, however, edged down by 0.14%.

Trump is set to announce his reciprocal tariff plan on Wednesday at a White House Rose Garden event. Press Secretary Karoline Leavitt said the announcement would focus on 'country-based' tariffs. Last week, Trump roiled markets by imposing a 25% tariff on all non-American cars, effective April 2. He may extend tariffs to other sectors, including commodities, semiconductors, and pharmaceuticals. Investors fear these tariffs'ultimately paid by U.S. importers'could stoke inflation and hamper economic growth.

NVIDIA Corporation slipped 1.2% on Monday. Tesla is set to report its first-quarter delivery data this week amid protests over CEO Elon Musk's political activities. CoreWeave Inc., backed by NVIDIA, plunged over 7% just days after its IPO, falling below its debut price. Meanwhile, Mr. Cooper Group Inc. surged more than 14% after agreeing to a $9.4 billion acquisition by Rocket Companies.