Barometers edge higher; breadth negative

The headline equity indices traded with moderate gains in early trade, breaking a three-week losing streak, supported by positive domestic economic data that boosted investor confidence. The Nifty traded above the 22,550 mark. Media, financial services, and metal stocks advanced, while auto, consumer durables, and healthcare shares corrected.

The upcoming trading week will be shorter due to holidays, with market participants closely monitoring both global and domestic events.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 88.94 points, or 0.12%, to 74,421.52. The Nifty 50 index added 41.10 points, or 0.18%, to 22,593.60.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.20%, and the S&P BSE Small-Cap index declined 0.45%.

The market breadth was negative. On the BSE, 1,549 shares rose and 1,593 shares fell. A total of 164 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,035.10 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,320.36 crore in the Indian equity market on 6 March 2025, provisional data showed.

Economy:

India's forex reserves dropped by $1.781 billion to $638.698 billion in the week ended February 28, the RBI said on Friday.

Foreign currency assets, a major component of the reserves, decreased by $493 million to $543.35 billion.

Gold reserves decreased by $1.304 billion to $73.272 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were up by $27 million to $17.998 billion, the apex bank said.

India's reserve position with the IMF fell by $12 million to $4.078 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Oriental Rail Infrastructure hit an upper circuit of 5% after the company secured its first significant order for the supply of seats for the Vande Bharat Express, India's first indigenous semi high speed train.

JSW Steel rose 0.29%. The company announced that consolidated crude steel production jumped 12% to 24.07 lakh tonnes in February 2025 as compared with 21.50 lakh tonnes produced in February 2024.

Shilpa Medicare added 1.83% after the company said that the United States Food and Drugs Administration (US FDA), post an inspection, has issued Form 483 with one observation to the company's unit located at Raichur.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.70% to 6.802 as compared with previous close 6.680.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.2625, compared with its close of 86.9550 during the previous trading session.

MCX Gold futures for 4 April 2025 settlement rose 0.21% to Rs 86,055.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 103.89.

The United States 10-year bond yield fell 0.81% to 4.283.

In the commodities market, Brent crude for May 2025 settlement lost 34 cents, or 0.48% to $70.02 a barrel.

Global Markets:

US Dow Jones index futures were down 173 points, indicating a negative opening in the US stocks today. Investors remained wary of uncertainty surrounding President Donald Trump's tariff policies and mulled over Federal Reserve Chair Jerome Powell's cautious remarks.

Most Asian stocks traded lower on Monday as traders analyzed fresh economic data from China. Over the weekend, China's consumer inflation dipped into negative territory for the first time in 13 months, driven by seasonal distortions and broader economic headwinds. The consumer price index (CPI) fell 0.7% year-over-year in February, reversing a 0.5% gain in January, according to the National Bureau of Statistics.

Adding to market jitters, Beijing announced retaliatory tariffs on certain Canadian agricultural products. The move comes after Canada imposed import duties last year on Chinese electric vehicles, steel, and aluminum. Under the new measures, China will slap a 100% tariff on Canadian rapeseed oil, oil cakes, and peas, while a 25% levy will be applied to aquatic products and pork.

In the U.S., major stock indices closed higher on Friday after a volatile trading day. The S&P 500 index rose 0.55% to 5,770.20, while the Nasdaq Composite gained 0.7% to 18,196.22. The Dow Jones Industrial Average added 222.64 points, or 0.52%, to end at 42,801.72.

Meanwhile, the latest labor market data painted a mixed picture. The U.S. economy added 151,000 jobs in February'falling short of expectations'while the unemployment rate ticked up to 4.1% from January's 4.0%, signaling possible cracks in labor market resilience.

Speaking on Friday, Fed Chair Jerome Powell reaffirmed the central bank's cautious stance on interest rates. While acknowledging that the U.S. economy remains stable, he emphasized the need for patience, particularly in light of President Donald Trump's recent economic policy shifts, which include tariffs and federal worker layoffs. Powell's comments suggest the Fed is in no rush to alter its policy path amid lingering uncertainties.

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