Indian Stock Market Wrap-Up:
The final week of the 2024-25 financial year ended on a positive note for the Indian stock market. The Nifty gained nearly 169 points over the week, while the Sensex advanced by more than 500 points. The market recorded gains on multiple sessions, driven by renewed foreign institutional investor (FII) activity, strength in banking and financial stocks, and optimism regarding a possible RBI rate cut in April. However, concerns about a potential tariff announcement from the Trump administration on April 2nd kept the market’s upside in check.
Looking ahead, the first week of April will be shortened due to a market holiday on Monday in Indian Stock Market, March 31st, in observance of Eid. Despite the shorter trading period, the bullish momentum is expected to continue. Uncertainty may persist early in the week due to the anticipated US tariff update, but after the announcement, the market could stabilize, with potential gains from short covering in Indian Stock Market.
Investors will closely track March quarter earnings and the upcoming RBI Monetary Policy Committee meeting in the second week of April. Key economic data points to watch include US employment statistics, Manufacturing and Services PMI data, and monthly auto sales numbers.
Indian Stock Market Performance Last Week
For the week ending March 28th, the Nifty and Sensex recorded gains, though broader indices lagged. The Nifty Midcap index dipped by 0.3%, while the Nifty Smallcap index declined by 0.55%. The auto and pharmaceutical sectors struggled, each dropping more than 2%, following Trump’s announcement of a 25% tariff on auto imports, set to take effect on April 2nd.
Key Factors to Watch Next Week
- US Tariff Announcement: The Trump administration is set to announce new tariffs on April 2nd. If the measures are aggressive, it could intensify the global trade war, impacting the global and US economies.
- US Employment Data: Investors will analyze February’s JOLTS report, March’s unemployment rate, and non-farm payroll figures. The US unemployment rate stood at 4.1% in February and may see an uptick in March.
- Federal Reserve Chair’s Speech: Jerome Powell is scheduled to speak on April 4th. His remarks will be closely watched for insights into the Fed’s interest rate outlook, particularly following the tariff announcement.
- Global Economic Indicators: Final readings for March’s Manufacturing and Services PMI from major economies like the US, China, and Japan will be in focus.
- India’s Economic Data: Domestic data releases include HSBC’s Manufacturing PMI (57.6) on April 2nd and Services PMI (57.7) on April 4th. Foreign exchange reserves data will also be released on April 4th, with reserves standing at $658.8 billion as of March 21st.
- Auto Sales Data: Monthly auto sales figures for March will be released starting April 1st. Analysts anticipate subdued performance across all segments, attributed to Kharmas, an inauspicious period in the Hindu calendar.
- FII Activity: Foreign institutional investors purchased shares worth ₹17,426 crore last week, with net inflows of ₹2,000 crore in March. Domestic institutional investors (DIIs) bought ₹6,797 crore worth of equities.
- IPO Activity: No new IPOs are slated for the main board next week in Indian Stock Market. However, in the SME segment, the public offerings of Infonative Solutions, Spinaroo Commercial, and Retaggio Industries will conclude.
For Recent Updates About Indian Stock Market:- BSE
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