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Bharat Forge Rises 3.2% to ₹1,182 After Securing Defence Ministry Contract
On March 28, 2025, the Indian stock market showcased a mixed performance as benchmark indices fluctuated throughout the day, influenced by global uncertainties, corporate-specific developments, and key regulatory announcements. The broader sentiment remained cautious, driven by U.S. trade policy developments and sector-specific pressures.
Benchmark Indices Performance
The BSE Sensex opened on a positive note at 77,702, registering an initial gain of 96 points or 0.12%. However, as trading progressed, the index encountered selling pressure in several key sectors, leading to a loss of over 300 points by mid-session. The index reflected investor hesitancy amid international headwinds and weak cues from Asian markets.
The NSE Nifty 50 displayed a similar trajectory. It opened near the 23,600 level but slipped below the crucial 23,550 mark during the session. Selling in heavyweight sectors such as IT, pharmaceuticals, and automobiles added to the drag on the index.
Sectoral Performance
Information Technology (IT):
IT stocks faced sharp selling pressure, declining by around 1.3%. Concerns over fresh U.S. tariffs on imported goods, especially targeting service-oriented exports, weighed heavily on companies like Infosys, Wipro, and TCS. The global dependency of this sector makes it vulnerable to geopolitical risks and foreign policy changes.
Automobiles:
Auto stocks fell by nearly 0.8% as global trade concerns intensified. The announcement of a 25% auto import tariff by the U.S. government triggered worries about international sales, especially for companies with global exposure such as Tata Motors and Mahindra & Mahindra.
Pharmaceuticals:
The pharma index declined by 0.9% due to mixed signals from international regulatory bodies and uncertainty over drug pricing in major export destinations. Stocks like Sun Pharma and Cipla faced downward pressure.
Oil & Gas and FMCG:
Contrary to the overall market tone, Oil & Gas and FMCG sectors ended in positive territory, gaining between 1% to 2%. These sectors benefited from domestic consumption demand and defensive buying by investors seeking stability amid broader volatility.
Major Stock Movements
BSE Limited:
Shares of BSE rallied by 12% after the market regulator proposed changes in the structure of derivatives expiry. The proposed reforms are expected to increase BSE’s participation in the derivatives market, which is currently dominated by the National Stock Exchange. Traders anticipated a potential spike in volumes and profitability.
Hindustan Aeronautics Limited (HAL):
HAL saw its share price rise by 2.83%, closing at ₹4,281.95. The rise was supported by increased trading volumes, indicating strong institutional interest, possibly tied to defense sector optimism and steady order inflows.
IndusInd Bank:
The bank’s shares slipped by 3.39%, making it one of the worst-performing large-cap stocks of the day. Weak investor sentiment around the financial sector, combined with profit booking, contributed to the downturn.
Currency and FII Trends
The Indian rupee appreciated by 19 paise to close at 85.59 against the U.S. dollar. This strength came on the back of continued foreign portfolio investment (FPI) inflows into the equity markets. On March 27, foreign investors pumped in over $1.2 billion, marking the sixth consecutive day of net positive inflows. Over the past week, total inflows have crossed the $6 billion mark.
The surge in FPI interest reflects confidence in India’s long-term growth prospects and a shift in sentiment following stronger macroeconomic data and easing inflationary pressures.
Key Regulatory and Policy Developments
Foreign Investment Limit Raised:
The Reserve Bank of India is reportedly planning to double the cap on foreign investment by individual investors in listed Indian companies. The current limit of 5% may be increased to 10% to attract greater overseas participation. However, this move may face scrutiny regarding ownership transparency and the risk of hostile takeovers.
‘Google Tax’ Withdrawal:
In a strategic diplomatic move, India has repealed the 6% Equalisation Levy, often referred to as the ‘Google Tax,’ on online advertisements. The decision is expected to smoothen trade relations with the U.S. and benefit large tech corporations. The rollback came in anticipation of the U.S. administration’s auto tariff announcements and is seen as a preemptive measure to avoid retaliatory economic sanctions.
Global Market Influence
Asian and European markets traded lower, reacting to U.S. President Donald Trump’s aggressive trade policy measures. Auto tariffs and inflation concerns in the West have created a ripple effect across emerging markets. Japan’s Nikkei 225 fell sharply, led by declines in Toyota, while the Korean Kospi also suffered due to pressure on Hyundai and Kia shares.
The cautious tone in global equities impacted Indian investor sentiment, particularly in export-dependent sectors such as IT and pharma. Global fund managers remained conservative, awaiting clarity on interest rate directions and trade policies.
Market Outlook
Short-term technical indicators suggest that the Nifty 50 may encounter resistance near the 23,850 mark, while immediate support lies around 23,400. The Bank Nifty index, trading near 50,700, may test 53,000 if momentum remains intact. Analysts are closely watching global bond yields, foreign investor flows, and corporate earnings to gauge market direction for April.
Volatility is expected to remain elevated due to the overlap of domestic policy changes, fiscal year-end activity, and international trade developments. Defensive sectors like FMCG, healthcare, and utilities may continue to attract attention in the near term.
March 28, 2025, reflected a day of cautious trading in the Indian stock market, marked by a tug-of-war between positive domestic triggers and negative global cues. While the Nifty and Sensex drifted lower, select stocks like BSE, HAL, and FMCG players outperformed. Regulatory moves such as the derivatives expiry reform and investment cap changes drew significant investor interest.
Market participants will likely continue to monitor geopolitical developments, sector-specific earnings trends, and central bank policy stances in the coming sessions. The landscape remains dynamic, with pockets of opportunity emerging even amid broad-based consolidation.