Profit taking drags indices lower; Nifty closes below 22,500

The domestic benchmark equity indices declined on Monday, erasing early gains as profit-taking took hold in the afternoon. The Nifty slipped below 22,500 after touching an intraday high of 22,676.75. Realty, energy, and PSU bank stocks led the decline. The downturn was triggered by a sharp drop in US stock futures, renewed trade tensions, and weak cues from Asian markets. Investors remained cautious ahead of key economic data releases this week, including CPI figures from both the US and India. Asian markets struggled as concerns over deflationary pressures in China compounded worries about sluggish US growth and escalating global trade tensions.

The S&P BSE Sensex fell 217.41 points or 0.29% to 74,115.17. The Nifty 50 index lost 92.20 points or 0.41%, to 22,460.30.

Trent (up 3.95%), Larsen & Tourbo (up 2.10%) and Reliance Industries (up 0.87%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 1.46% and the S&P BSE Small-Cap index fell 2.11%.

The market breadth was weak. On the BSE, 1,203 shares rose and 2,877 shares fell. A total of 149 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.82% to 13.99.

Numbers to Track:

The yield on India's 10-year benchmark federal paper grew 1.87% to 6.813 compared with the previous close of 6.680.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.3200 compared with its close of 86.9550 during the previous trading session.

MCX Gold futures for the 4 April 2025 settlement fell 0.02% to Rs 85,856.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.19% to 103.64.

The United States 10-year bond yield shed 1.74% to 4.243.

In the commodities market, Brent crude for May 2025 settlement added 0.14 cents or 0.20% to $70.50 a barrel.

Global Markets:

US Dow Jones futures plunged 370 points, signaling a weak opening for Wall Street as investors grappled with uncertainty over President Donald Trump's tariff policies and Federal Reserve Chair Jerome Powell's cautious outlook.

European stocks declined on Monday, pressured by weak economic data from Germany. Provisional figures from the Federal Statistical Office revealed that German exports dropped 2.5% month-on-month in January, adding to concerns over slowing global trade.

Asian markets also ended lower as investors digested 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.

Stocks in Spotlight:

Bodal Chemicals surged 15.71% after the Indian government imposed anti-dumping duties on Trichloro Isocyanuric Acid (TCCA) imports from China and Japan. Bodal Chemicals is the sole Indian producer of TCCA 90, with a 12,000 MT per year production capacity at its Khambhat, Gujarat facility.

Indian Renewable Energy Development Agency's (IREDA) dropped 3.87% after the Reserve Bank of India (RBI) rejected the company's request for equity investment in the 900 MW Upper Karnali Hydropower Project in Nepal.

Sun Pharmaceutical Industries rose 0.13%. The company said that it has entered into an agreement for the acquisition of all the outstanding shares of Checkpoint Therapeutics, Inc., an immunotherapy and targeted oncology company.

Lupin slipped 1.37%. The company announced that it has launched Rivaroxaban tablets USP, 2.5 mg, in the US market following final approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA). Rivaroxaban is indicated for reducing the risk of major cardiovascular events in patients with coronary artery disease (CAD) and major thrombotic vascular events in patients with peripheral artery disease (PAD), including those who have undergone lower extremity revascularization due to symptomatic PAD.

Glenmark Pharmaceuticals slipped 0.78%. The company has announced the launch of 'Polyethylene Glycol 3350 Powder for Solution' as an OTC product in the US market. Polyethylene glycol is an osmotic laxative. It prevents and treats occasional constipation.

SPML Infra hit an upper circuit of 5% after the company signed an agreement with the Water Resource Department, Hazaribagh, for a major irrigation project under the Konar Irrigation Project on a turnkey basis.

Captain Technocast gained 4.92% after the company said that its board will convene on Tuesday, 18 March 2025, to consider a bonus share issue.

Coal India (CIL) declined 1.50%. The company said that it has signed a memorandum of understanding (MoU) with the Indian Institute of Technology, Hyderabad (IIT-H), to develop clean coal technologies and diversification in coal utilization.

Sterlite Technologies dropped 4.31% after the company informed that Tushar Shroff, chief financial officer (CFO) and key managerial personnel of the company, has tendered his resignation, effective from 31 March 2025.

Active Clothing Co hit an upper limit of 5% after the company announced its plan to raise funds via a preferential allotment of 5 lakh warrants.

Narayana Hrudayalaya rose 0.54%. The firm's foreign subsidiary, Health City Cayman Islands (HCCI), entered into a joint venture (JV) agreement with 2070 Health Inc., W Health Ventures GP LLC, and Everhope Oncology Private to establish and operate a network of healthcare centers in India, specifically for the treatment of cancer patients, with a focus on chemotherapy treatment.

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