The domestic benchmark indices witnessed volatile trading on Thursday, ultimately closing with a marginal positive bias. The volatility was largely attributed to the monthly index options expiry on the NSE today.
The Nifty finished just below the 22,550 level. Financial stocks saw gains following the Reserve Bank of India's (RBI) decision to ease lending rules. However, these gains were countered by losses in the auto sector. While headline indices showed marginal gains, broader market indices registered sharp declines.
Global market sentiment remained cautious, with uncertainties surrounding potential tariff adjustments. Analysts have highlighted sustained selling by FIIs as a key factor contributing to recent market sell-offs. In addition, concerns over market valuations, and weaker-than-expected quarterly earnings reports have also impacted market sentiment.
The S&P BSE Sensex advanced 10.31 points or 0.01% to 74,612.43. The Nifty 50 index shed 2.50 points or 0.01% to 22,545.05.
UltraTech Cement (down 5%), Trent (down 3.08%), Tata Motors (down 2.05%) and M&M (down 1.95%) were major drags.
In the broader market, the S&P BSE Mid-Cap index declined 0.97%, and the S&P BSE Small-Cap index fell 2.09%.
The market breadth was weak. On the BSE, 943 shares rose and 3030 shares fell. A total of 99 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.97% to 13.31.
Numbers to Track:
The yield on India's 10-year benchmark federal paper grew 1.73% to 6.822, compared with the previous close of 6.700.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.1800 compared with its close of 87.1900 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement shed 0.70% to Rs 85,274.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 106.68.
The United States 10-year bond yield rose 1.51% to 4.313.
In the commodities market, Brent crude for April 2025 settlement added 75 cents or 1.03% to $73.28 a barrel.
Global Market:
Most European stocks declined on Thursday after U.S. President Donald Trump threatened to impose 25% tariffs on imports from the European Union.
Asian shares ended mixed, influenced by a combination of Nvidia's earnings results and renewed US trade tariff concerns.
Nvidia, a key player in the AI sector, reported strong quarterly figures, forecasting first-quarter revenue of $43 billion, exceeding expectations of $42.05 billion. However, a projected softer-than-expected gross margin, attributed to the Blackwell production ramp-up, led to a volatile after-hours trading session, with the stock fluctuating between gains and losses. This muted investor response followed a period of consistently high expectations.
Adding to market unease, President Donald Trump announced plans to impose 25% tariffs on the European Union and reiterated that tariffs on Mexico and Canada would take effect on April 2. Contradictory statements within his announcement created confusion and uncertainty among investors.
These developments followed a flat close for U.S. stocks on Wednesday, which had already seen four consecutive days of losses. Concerns about a potential U.S. economic slowdown, reflected in weak consumer sentiment data, further contributed to the negative market sentiment.
Specifically, the S&P 500 closed unchanged at 5,956.18 points, the NASDAQ Composite rose 0.3% to 19,075.26 points, and the Dow Jones Industrial Average fell 0.4% to 43,433.12 points.
Investors are now awaiting key economic data, including fourth-quarter gross domestic product figures due Thursday and the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, scheduled for Friday.
Stocks in Spotlight:
Shares of NBFCs were in demand after the Reserve Bank of India (RBI) lowered risk weights for bank finance to NBFCs and microfinance loans, a move that is likely to unlock more funds and boost credit.
Shriram Finance (up 5.18%), Cholamandalam Investment and Finance Company(up 4.92%), Bajaj Finserv (up 2.40%), SBI Cards & Payment Services (up 2.18%), Bajaj Finance (up 2.03%), HDFC Bank (up 0.95%), Axis Bank (up 0.83%), Muthoot Finance (up 0.81%) and ICICI Lombard General Insurance Company (up 0.58%) rose.
The RBI reversed the notification of November 2023 of the additional 25% Risk Weight applied on the earlier rating wise risk-weight on a bank loan. However, the risk-weight increase to 125% from 100% on personal loans and credit card outstandings by NBFCs has been kept unchanged. A lower risk weight means that lenders need to set aside less funds as a safety net for consumer loans, implying an increase in their lending capacity.
UltraTech Cement dropped 4.99% after the company announced its plan to enter the wires and cables segment, investing approximately Rs 1,800 crore over the next two years.
The company's board approved the venture, aligning with its strategy to become a comprehensive building solutions provider. A new plant, expected to be commissioned near Bharuch, Gujarat, by December 2026, will serve the growing demand across residential, commercial, infrastructure, and industrial sectors.
Meanwhile, shares of other wire and cable manufacturers plummeted, following UltraTech Cement's announcement of its entry into the sector.
KEI Industries (down 21.03%), RR Kabel (down 20%), Polycab India (down 18.84%), Havells India (down 6.33%) and Finolex Cables (down 6.42%) slumped.
The market's reaction reflects concerns about increased competition within the wire and cable industry.
Vesuvius India rose 1% to Rs 4083.20. The company reported a standalone net profit of Rs 59.93 crore in Q4FY24, registering a 5.01% increase compared to the same period in the previous year. Net sales also saw a rise, climbing 22.83% year-on-year (YoY) to Rs 507.49 crore.
Tata Power Company slipped 2.21%. The company announced that it has signed a landmark MoU with the Assam Government to develop and tie up up to 5000 MW of renewable and clean energy, with Rs 30,000 crore investments, at the Advantage Assam 2.0 event.
Zydus Lifesciences rose 0.89%. The company announced the launch of VaxiFlu-4, India's first quadrivalent influenza vaccine, for the 2025 southern hemisphere season. A quadrivalent vaccine, by covering strains of both influenza A and influenza B significantly reduces the risk of vaccine mismatch. The vaccine has been cleared by the Central Drug Laboratory (CDL), the company added.
Mahindra EPC Irrigation declined 1.96%. The company announced that it has received an order worth Rs 11.79 crore from the Office of the Assistant Engineer for the supply of microirrigation systems under a community microirrigation project.
Cupid dropped 1.21%. The company announced that it has received purchase orders from the Medical Stores Department, Government of Tanzania, for the supply of male condoms worth Rs 42 crore.
Jupiter Wagons lost 2.65%. The company announced that its manufacturing arm, Jupiter Tatravagonka Railwheel Factory, received a contract worth Rs 255 crore from Braithwait & Co. for the supply of 9,140 wheelsets of 840 mm diameter for 25-ton axle load applications.
Mastek added 1.09%. The company has announced that it has secured multi-year, multi-million dollar contracts with an estimated value of $85 million from a UK Public Service Department.