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Key movers include TCS with its Q4 results and Biocon gaining FDA approval
On April 11, 2025, the Indian stock market experienced a significant surge, driven by favorable international trade developments and positive domestic economic indicators. The BSE Sensex climbed 1,532.21 points, reaching 75,379.36, while the NSE Nifty 50 advanced 500.70 points to close at 22,899.85, marking gains of 2.07% and 2.24% respectively .
Key Drivers of the Rally
U.S. Tariff Suspension: The primary catalyst for the market rally was the U.S. administration's decision to suspend additional tariffs on Indian goods for 90 days, until July 9, 2025. This move alleviated concerns over escalating trade tensions and bolstered investor confidence.
Global Trade Dynamics: While India benefited from the tariff suspension, the U.S. imposed a 145% tariff on Chinese imports, intensifying the U.S.-China trade war. This development positioned India favorably as an alternative trade partner, attracting increased foreign investment.
RBI's Monetary Policy: The Reserve Bank of India's recent decision to cut the repo rate by 25 basis points to 6% and shift its policy stance from 'accommodative' to 'neutral' aimed to support economic growth amidst global volatility.
Sectoral Performance
Metals: The Nifty Metal index led sectoral gains, rising 4.58%. Stocks like Hindalco and Tata Steel surged by 7% and 5% respectively, driven by expectations of increased demand and favorable trade conditions.
Banking and Financials: The Nifty Bank index advanced 1.94%, with significant contributions from HDFC Bank and Kotak Mahindra Bank, both gaining over 2%. The sector's performance was buoyed by improved liquidity conditions and positive economic outlook.
Mid and Small Caps: Broader markets mirrored the bullish trend, with the Nifty MidCap and SmallCap indices rising 2.11% and 2.6% respectively. Stocks such as Dixon Technologies and Affle India were among the top gainers in this segment.
Currency and Commodities
The Indian rupee strengthened against the U.S. dollar, appreciating by 45 paise to 86.24. This gain was attributed to a sharp decline in the dollar index and falling oil prices, which reduced India's import bill and supported the current account deficit.
Mutual Fund Flows
Despite the market rally, equity mutual fund inflows in March 2025 dropped to an 11-month low of ₹25,082 crore, marking a 14.4% month-on-month decline. The decrease was primarily due to reduced contributions to sectoral and thematic funds, which saw a dramatic 97% year-on-year fall .
Corporate Highlights
Tata Consultancy Services (TCS): TCS reported subdued Q4 results, with revenue growth and EBIT margins slightly below expectations. The company's performance was affected by delays in decision-making and project ramp-downs .
Biocon: Biocon Biologics received U.S. FDA approval for its biosimilar product, Jobevne, a version of Avastin (bevacizumab). This approval is expected to enhance the company's presence in the oncology segment .
JSW Energy: JSW Neo Energy, a subsidiary of JSW Energy, completed the acquisition of O2 entities, adding a consolidated operational and under-construction renewable energy portfolio of 4.7 GW to its assets .
Analyst Recommendations
Brokerage firms provided varied stock recommendations:
Oil India Ltd: Recommended buy at ₹349 with a target of ₹370 and stop loss at ₹338.
Kalyan Jewellers India: Recommended buy at ₹494 with a target of ₹525 and stop loss at ₹485.
NHPC: Recommended buy at ₹84 with a target of ₹90 and stop loss at ₹81 .
Outlook
While the immediate market sentiment remains positive, analysts caution that the U.S. tariff suspension is a temporary reprieve. The evolving global trade landscape, particularly the U.S.-China tensions, continues to pose risks. Investors are advised to remain vigilant and consider sector-specific developments when making investment decisions.
The Indian stock market's robust performance on April 11, 2025, underscores the impact of international trade policies and domestic economic measures on investor sentiment. Continued monitoring of global trade negotiations and domestic economic indicators will be crucial in assessing the market's trajectory in the coming weeks