Indian Markets to Get a Strong Start
Indian markets are likely to start on a strong note on Tuesday with Gift Nifty at about 23,758, which reflects a premium of almost 59 points compared to Nifty futures' last close. This indicates sustained bullish behavior, supported by firm global cues and revival of foreign investors' confidence.
On Monday, the markets continued their winning streak for the sixth straight session, with the Sensex rising 1,078.87 points (+1.40%) to 77,984.38, and the Nifty 50 rising 307.95 points (+1.32%) to close at 23,658.35.
Global Markets Rally
Wall Street closed on a high note, with major indices rallying on speculation that former US President Donald Trump could ease his hardline stance on trade tariffs.
Dow Jones: +1.42% at 42,583.32
S&P 500: +1.76% at 5,767.57
Nasdaq: +2.27% at 18,188.59
Major tech stocks jumped:
- Nvidia (+3.15%)
- AMD (+6.96%)
- Tesla jumped 11.93%, its largest one-day gain since November.
Asian markets also followed the upward trend, with Japan's Nikkei 225 up 1.15% and South Korea's Kospi 0.49% higher.
Key Market Drivers
1. Trump Tariffs in Focus
Donald Trump indicated future tariffs on cars, aluminum, and drugs but suggested that certain nations could be exempted. Moreover, an executive order requires a 25% tariff on the purchase of oil and gas from Venezuela. The market is keenly observing the developments.
2. SEBI Board Meeting: Key Announcements
The Securities and Exchange Board of India (SEBI) has announced relaxations for foreign investors, alternative investment funds, and registered investment advisors. At the same time, the regulator will review conflict of interest provisions affecting market participants.
3. RBI’s Revised PSL Guidelines
The Reserve Bank of India (RBI) has updated its Priority Sector Lending (PSL) guidelines, effective April 1, 2025. Key changes include:
- Increased loan limits for housing loans under PSL
- Increased coverage of clean energy projects
4. US PMI Indicates More Robust Economic Activity
S&P Global's US Composite PMI Output Index increased to 53.5 in March (from February's 51.6), indicating strong economic growth. Nevertheless, manufacturing PMI fell to 49.8 from 52.7, indicating sector-specific decelerations.
5. BoJ Meeting Minutes Suggest Interest Rate Hike
Bank of Japan (BoJ) minutes from its January meeting show debate over further rate hikes, a historic turn for its 17-year low interest rate stance.
6. US Dollar Strengthens, Gold Slides
The US dollar index rose for the fourth consecutive session to a high of 104.3.
Spot gold fell to $3,010.72 per ounce, and US gold futures were unchanged at $3,015.10, as the improvement in trade tensions stifled demand.
Market Outlook
With robust domestic momentum, foreign inflows and positive global signals, Indian markets are expected to maintain their upswing. But investors need to monitor global trade policies, RBI's policy direction and commodity price directions for further cues.
Disclaimer:
This article is provided for information purposes only and is not financial advice. The opinions and views expressed are as per data publicly available and market trends. Investors should research independently and consult recognized financial professionals prior to any investment decision. The stock market is risky, and past performance is not predictive of future performance.
