The domestic equity indices posted decent gains this week, driven by foreign fund inflows and buying in blue-chip stocks, which supported the recovery in equities. However, the broader market underperformed this week. The sentiment remained, for most part of the week, remained cautious after American President Donald Trump announced the imposition of tariffs on auto imports into the US.
In the week ended on Friday, 28 March 2025, the S&P BSE Sensex advanced 509.41 points or 0.66% to settle at 77,414.92. The Nifty 50 index added 168.95 points or 0.72% to settle at 23,519.35. The BSE Mid-Cap index fell 0.71% to close at 41,531.12. The BSE Small-Cap index declined 1.39% to end at 46,638.13.
For the financial year 2024-25, the S&P BSE Sensex has risen 5.11% while the Nifty 50 index has gained 5.34%. The S&P BSE MidCap Index and the S&P BSE SmallCap Index have added 5.62% and 8.04%, respectively.
Weekly Index Movement:
The domestic equity barometers experienced a week of fluctuating performance. Monday saw benchmark indices surge, with the S&P BSE Sensex gaining 1.40% or 1,078.87 points to close at 77,984.38, and the Nifty 50 rallying 1.32% 307.95 points to 23,658.35.
The key equity indices failed to sustain the rally and ended with marginal gains on Tuesday, as the Sensex edged up 0.04% or 32.81 points to 78,017.19, and the Nifty 50 rose 0.04% or 10.30 points to 23,668.65.
A sharp reversal occurred on the domestic bourses on Wednesday, with both benchmark indices experiencing significant losses. The Sensex declined 0.93% or 728.69 points to 77,288.50, and the Nifty 50 fell 0.77% or 181.80 points to 23,486.85.
The key equity benchmarks observed a partial recovery on Thursday, with the Sensex gaining 0.41% or 317.93 points to 77,606.43, and the Nifty 50 adding 0.45% or 105.10 points to 23,591.95.
Post such on oscillating period, the equity indices managed to conclude the week with modest losses on Friday. The Sensex slipped 0.25% or 191.51 points to 77,414.92, and the Nifty 50 declined 0.31% or 72.60 points to 23,519.35.
Politics:
The Lok Sabha on Monday passed the Finance Bill 2025, incorporating 35 government amendments, including a significant one that abolishes the 6% digital tax on online advertisements. The passage of the bill marks the completion of the lower house's role in the Budget approval process for the fiscal year 2025-26. The Finance Bill will now move to the Rajya Sabha for consideration. Once approved by the upper house, the Budget process for the next financial year will be finalized.
Economy:
India's private sector economy ended the 2024/25 fiscal year on a strong footing, sustaining robust expansions in new business intakes and output, according to preliminary HSBC flash PMI data. Although the rates of growth softened from February, they remained well above their respective long-run averages. Outstanding business volumes continued to rise, supporting another round of job creation, while price trends were mixed.
The HSBC Flash India Manufacturing PMI increased from 56.3 in February to 57.6 in March, signaling a notable improvement in operating conditions that was broadly aligned with the average for the 2024/25 fiscal year.
The HSBC Flash India Services PMI Business Activity Index dropped to 57.7 in March, down from the February final of 59.0.
The HSBC Flash India Composite Output Index marginally decreased from February's final reading of 58.8 to 58.6 in March. The latest figure was still above its long-run average of 54.7, indicating a sharp rate of expansion.
Stocks in Spotlight:
Tata Motors slumped 4.10%. The U.S. President Donald Trump announced a 25% tariff on imported cars and light trucks, a move aimed at boosting domestic manufacturing. The tariff, set to take effect on April 3, is expected to increase costs for automakers and potentially dent sales. While Tata Motors itself does not directly export to the U.S., its subsidiary Jaguar Land Rover (JLR) has a significant presence in the American market.
Seamec jumped 4.15%. The company said that its charter party with Asian Energy Services has been extended, with an option for further extension. The addendum revises the charter hire rate to $42,000 per day, plus GST. The total value for the revised firm period is $630,000.
Further, it announced that its consortium with Posh India Offshore has been awarded a letter of award (LoA) by Larsen & Toubro's (L&T) Energy Hydrocarbon Division.
Separately, Seamec informed that it has entered into a subcontract agreement with Posh India Offshore. This agreement covers the installation of riser clamps, bow strings, and other related works for ONGC's Pipeline Replacement Project VIII (PRP-VIII Gr. B) and the Daman Upside Development Project (DUDP), with payment based on unit rates. The maximum potential value of this subcontract, based on the indicated scope of work, is approximately $5.61 million, excluding GST.
Indian Renewable Energy Development Agency rose 3.68%. The company informed that it has signed a facility agreement for raising external commercial borrowing (ECB) from SBI Tokyo Branch for JPY 26 billion (Rs 1,476 crore), including a green shoe option of JPY 10 billion. The five-year unsecured loan will be repaid in a single payment at maturity and is expected to enhance IREDA’s presence in global financial markets.
Bharat Heavy Electricals (BHEL) advanced 2.01%. The company announced that it had received a letter of intent (LoI) worth approximately Rs 11,800 crore.
Ashok Leyland fell 3.08%. The Hinduja Group has pledged around 30 crore shares of Ashok Leyland, the group's flagship company in India. The pledge was created through Hinduja Automotive, a UK-based holding company and a key part of the Hinduja Group, which serves as the primary vehicle through which the Hinduja family holds its stake in Ashok Leyland. As of 31 December 2024, the promoter had pledged 15.38% of its stake. On 26 March 2025, the company created an additional pledge of 10.21%, taking the total pledge to 25.59%.
Wipro shed 0.85%. The company announced that it has won a £500 million, 10-year strategic deal with Phoenix Group, the UK's largest long-term savings and retirement business. The project is designed to deliver life and pension business administration for the ReAssure business and accelerate Phoenix Group's operational transformation.
Bharat Forge declined 1.14%. The company inked the largest domestic contract with Ministry of Defence for the supply of 184 indigenously developed Artillery System (ATAGS). The contract, which accounts for 60% of the Rs 6,900 crore procurement by the Ministry of Defence, involves the supply of the Advanced Towed Artillery Gun System (ATAGS). Jointly developed with the Defence Research and Development Organisation (DRDO).
Power Mech Projects zoomed 25.33% The company announced that it had received an order worth Rs 579 crore from Bharat Heavy Electricals (BHEL) for the 2x800 MW Damodar Valley Corporation (DVC) Koderma TPS Phase-II in Jharkhand.
Global Markets:
In Asia, Japan's Au Jibun Bank Manufacturing PMI fell to 48.3 in March, marking its ninth consecutive month of contraction, while the Services PMI dropped to 49.5, signaling its first contraction since mid-2024.
Bank of Japan Governor Kazuo Ueda signaled potential further interest rate hikes, while Japan's corporate services price index remained at 3%.
Japanese automaker stocks declined following confirmation of U.S. tariffs on imported cars and light trucks, set to take effect in April.
In China, the central bank announced changes to its medium-term lending facility (MLF) operations, potentially reducing the instrument's influence on monetary policy. The People's Bank of China (PBOC) will issue 450 billion yuan in one-year MLF loans using a new fixed-quantity, interest-rate, and multiple-price bidding method.
In Europe, France's inflation remained steady at 0.9% in March, matching February's figure, according to Insee. Service prices saw a slight increase, while energy prices continued to decline, albeit at a slower pace.
The inflation rate in Spain fell to 2.2% in March, down from 2.9% in February, driven primarily by lower electricity and fuel prices, as reported by INE.
In the United Kingdom, the economy posted modest growth in the final quarter of 2024, with gross domestic product (GDP) increasing by 0.1% between October and December, which was unchanged from previous estimates, according to the latest figures from the Office for National Statistics (ONS). This follows a period of stagnation, with zero growth recorded in the third quarter. However, the ONS also reported a slight dip of 0.1% in GDP for January 2025.
Meanwhile, the private sector economic activity in the United States accelerated in March, with the S&P Global Composite PMI rising to 53.5. The Services PMI increased to 54.3, while the Manufacturing PMI decreased to 49.8.