| The key equity benchmarks ended with major gains today, snapping a two-day losing streak, as investors assessed the federal budget’s impact on markets and capital flows. The rebound came despite proposals to raise transaction taxes on derivatives and the lack of fresh measures to attract foreign investment. The Nifty settled above the 25,050 level.
The barometer index, the S&P BSE Sensex zoomed 943.52 points or 1.17% to 81,666.46. The Nifty 50 index jumped 262.95 points or 1.06% to 25,088.40. In the past two consecutive trading sessions, the Sensex declined 0.73% while the Nifty fell 0.91%.
In the broader market, the BSE 150 Mid-Cap index rose 0.86% and the BSE 250 Small-Cap index added 0.28%. The market breadth was negative.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 8.14% to 13.87.
Among the sectoral indices, the Nifty Auto index (up 2.13%), the Nifty Oil& Gas index (up 2.04%) and the Nifty Metal index (up 1.88%) outperformed the Nifty 50 index.
Meanwhile, the Nifty IT index (down 0.47%), the Nifty Healthcare index (down 0.08%) and the Nifty PSU bank index (up 0.87%) underperformed the Nifty 50 index.
Economy:
India’s manufacturing activity recovered in January after losing momentum in December, though business confidence weakened. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 55.4 in January from a two-year low of 55.0 in December, remaining well above the 50-mark that separates expansion from contraction.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 1.15% to 6.772 compared with previous session close of 6.695.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 91.5200 compared with its close of 90.9350 during the previous trading session.
MCX Gold futures for 2 April 2026 settlement declined 1.79% to Rs 145,398.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 97.07.
The United States 10-year bond yield fell 0.59% to 4.219.
In the commodities market, Brent crude for April 2026 settlement dropped $3.01 or 4.34% to $66.31 a barrel.
Brent crude prices slid after U.S. President Donald Trump said over the weekend that Iran was “seriously talking” with Washington, signaling a possible easing of tensions with the OPEC member. The comments helped temper fears of a potential military strike that had earlier pushed oil prices to multi-month highs.
Global Markets:
The US Dow Jones index futures are currently down by 137 points, signaling a weak opening for US stocks today.
European equities traded lower on Monday as a sell-off in precious metals dented investor sentiment at the start of a data-heavy week marked by key corporate earnings, central bank meetings, and macroeconomic releases.
Data released earlier showed that German retail sales edged up 0.1% month-on-month in December, improving from a 0.5% decline recorded in the previous month.
Asian equities ended lower as investors digested fresh private data on China’s factory activity for January, while gold continued to slide after last week’s drop.
China’s manufacturing momentum picked up pace in January, a private survey released on Monday showed, with producers ramping up output and shipping goods ahead of the long Lunar New Year break.
The RatingDog China General Manufacturing PMI, compiled by S&P Global, edged up to 50.3 in January from 50.1 in December. Since readings above 50 signal expansion and those below indicate contraction, the latest print points to a modest improvement. It was also the strongest showing since October, when the index stood at 50.6.
Over in the US, stocks ended lower on Friday as technology shares stayed under pressure, even as markets broadly welcomed President Donald Trump’s choice of Kevin Warsh as the next Federal Reserve chair. Despite the late-month wobble and choppy trading through January, the S&P 500 still managed to close the month in positive territory. On Friday, the index slipped 0.43% for its third straight decline, the Dow Jones Industrial Average fell 0.36%, and the Nasdaq Composite lagged with a sharper 0.94% drop.
Warsh’s nomination helped calm nerves around the Fed’s independence, given his past experience as a central bank governor and his firm views on inflation. While he is expected to favour lower interest rates in the near term, in line with Trump’s preferences, markets see him as someone likely to retain policy credibility rather than simply take cues from the White House. |