Indian Benchmark Indices Open Higher as Global Trade War Tension Ease
On March 24, 2025, foreign institutional investors (FII) bought shares worth Rs 3,055.76 crore, while domestic institutional investors (DII) bought shares worth Rs 98.54 crore.
Pre-Market Update at 7:45 AM: Indian equity benchmark indices, Sensex and Nifty 50, are set for a positive opening on Tuesday, taking cues from a global market rally. Asian markets traded in the green, while Wall Street saw strong gains, with the S&P 500 closing at its highest level in more than two weeks.
Gift Nifty hovered around the 23,750 mark, reflecting a premium of approximately 63 points over the previous close of Nifty futures. This suggests a potential gap-up opening for Indian stock market indices.
The US stock market closed higher on Monday, driven by indications that the Trump administration could adopt a more cautious stance on tariffs in trade negotiations. The Dow Jones Industrial Average climbed 1.42 per cent to 42,583.32, while the S&P 500 advanced 1.76 per cent to 5,767.57. The Nasdaq ended the session with a 2.27 per cent gain, reaching 18,188.59.
U.S. President Donald Trump stated that new tariffs on automobiles are imminent, though not all proposed levies will take effect on April 2. He hinted that several countries might receive exemptions. Additionally, Trump mentioned that tariffs on aluminum and pharmaceuticals would be introduced soon. In a separate executive order, he declared that any country purchasing oil or gas from Venezuela would face a 25 per cent tariff on trade transactions with the U.S.
Economic activity in the U.S. showed improvement in March, as indicated by S&P Global’s flash U.S. Composite PMI Output Index, which climbed to 53.5 from February’s 51.6. The manufacturing sector, however, witnessed a decline, with the flash manufacturing PMI slipping to 49.8 from 52.7. This was lower than economists’ expectations of 51.7. Meanwhile, the flash services PMI showed a notable rise, increasing to 54.3 from 51.0, contrary to predictions of a drop to 50.8.
The Securities and Exchange Board of India (SEBI) has eased regulations for foreign investors, alternative investment funds, and registered investment advisors. Additionally, the regulatory body is set to review various provisions concerning conflicts of interest and compliance requirements for its officials and members.
The Reserve Bank of India (RBI) has introduced updated guidelines on Priority Sector Lending (PSL) to enhance credit allocation to key economic sectors. Notable amendments include an increase in loan limits for housing under PSL coverage and an expansion of eligibility criteria for loans under the renewable energy category. These changes will be implemented from April 1, 2025.
Minutes from the Bank of Japan’s January meeting revealed that policymakers deliberated on the pace of future interest rate hikes. The discussions followed the central bank’s recent decision to raise short-term interest rates to their highest level in 17 years.
Asian markets saw an upward trend on Tuesday, taking cues from Wall Street’s overnight rally amid optimism over potentially lower-than-expected tariffs from U.S. President Donald Trump. Japan’s Nikkei 225 climbed 1.15 per cent, while the Topix index advanced 0.50 per cent. South Korea’s Kospi edged up 0.49 per cent, and the Kosdaq moved higher by 0.30 per cent. Meanwhile, Hong Kong’s Hang Seng index futures suggested a subdued start.
Brent crude slipped 0.07 per cent to USD 72.97 per barrel following a 2.2 per cent rise last week, while US WTI crude futures edged up 0.03 per cent to USD 68.94.
The dollar index was trading at 103.93, while USD/INR was trading at 85.56.
On Monday, the Indian stock market continued its winning streak for the sixth straight session, with the Nifty 50 closing above the 23,650 mark. The Sensex surged 1,078.87 points (1.40 per cent) to settle at 77,984.38, while the Nifty 50 gained 307.95 points (1.32 per cent) to end at 23,658.35.
On March 24, 2025, foreign institutional investors (FII) bought shares worth Rs 3,055.76 crore, while domestic institutional investors (DII) bought shares worth Rs 98.54 crore.
Stocks that are banned for trading in the F&O segment on March 25, 2025, is Indusind Bank Ltd only.
Disclaimer: The article is for informational purposes only and not investment advice.