After a brief correction in the previous session, key equity benchmarks resumed their uptrend on Thursday, supported by strong buying in financial heavyweights, Reliance Industries, and Larsen & Toubro. The rally helped counter losses in the auto sector, which came under pressure following U.S. President Donald Trump's announcement of a 25% tariff on imported cars, sparking concerns over trade policies. The Nifty closed above the 23,550 mark, with volatility heightened due to the expiry of monthly Nifty options.

Despite challenges in auto stocks, broader market sentiment remained positive, driven by strong retail participation in small and mid-cap stocks. Analysts attribute the renewed optimism to the return of foreign institutional investors (FIIs) to Indian equities, with FIIs investing over Rs 21,000 crore in the last five sessions, further bolstering market momentum.

The S&P BSE Sensex rallied 317.93 points or 0.41% to 77,606.43. The Nifty 50 index added 105.10 points or 0.45% to 23,591.95.

Bajaj Finserv (up 3.23%), Larsen & Toubro (up 1.76%), Bajaj Finance (up 1.37%), HDFC Bank (up 1.07%) and Reliance Industries (up 0.46%) supported the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.46% and the S&P BSE Small-Cap index added 0.90%.

The market breadth was negative. On the BSE, 1699 shares rose and 2349 shares fell. A total of 84 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.26% to 13.30.

Numbers to Track:

The yield on India's 10-year benchmark federal paper grew 1.50% to 6.701 as compared with the previous close of 6.707.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.7750 compared with its close of 85.7000 during the previous trading session.

MCX Gold futures for 4 April 2025 settlement rose 0.81% to Rs 88,360.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.08% to 104.47.

The United States 10-year bond yield rose 1.31% to 4.395.

In the commodities market, Brent crude for May 2025 settlement declined 12 cents or 0.16% to $73.79 a barrel.

Global Markets:

European shares declined on Thursday as U.S. President Donald Trump threatened to impose significantly higher tariffs on the European Union (EU) and Canada if they collaborate to counter U.S. trade tariffs. Investors also reacted to new automotive tariffs announced by President Trump.

Asian stocks ended mixed as investors digested U.S. President Donald Trump's plan to impose 25% tariffs on auto imports.

Japanese automaker stocks took a sharp hit after Trump confirmed that the tariffs targeting imported cars and light trucks will take effect on April 2. The move could have significant repercussions for Japanese manufacturers, who rely heavily on the U.S. market.

US market closed lower on Wednesday, with investors fretting over the economic impact of the tariffs. Tech stocks also faced selling pressure amid mounting concerns about an oversupply of AI data centers and computing capacity.

At the closing bell, the Dow Jones Industrial Average slipped 0.31%, the S&P 500 lost 1.12%, and the NASDAQ Composite plunged 2.04%.

AI giant NVIDIA dropped 1.2% after already tumbling 5.7% during Wednesday's session. Server makers Broadcom, Dell Technologies, and Super Micro Computer also declined in after-hours trading. Meanwhile, GameStop surged 11% after its management approved a plan to invest excess cash in Bitcoin.

Stocks in Spotlight:

Tata Motors slumped 5.47% after 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.

The Nifty Auto index slipped 1.04% today. Sona BLW Precision Forgings (-6.20%), Eicher Motors (-1.04%), Mahindra & Mahindra (-0.3%) declined.

Ashok Leyland fell 2.77% after the Hinduja Group has pledged around 30 crore shares of Ashok Leyland, the group's flaship 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%.

BSE jumped 4.90% after the company said its board will consider a bonus share issue on 30 March 2025.

TVS Motor Company rose 0.96%. The company said that its wholly owned subsidiary, TVS Motor (Singapore) has acquired an additional 30% stake in EBCO from its existing shareholder for a consideration of GBP 60,000.

Wipro added 1.80% after 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.

Sterlite Technologies advanced 2.24% after the firm announced its successful partnership with Wyre for supporting the development of its expansive multi-gigabit Fibre-to-the-home (FTTH) network.

SpiceJet added 0.56%. The company announced that it has successfully settled its dispute with Willis Lease Finance Corporation, a leading global aircraft engine lessor, resulting in a substantial saving for the airline.

Bharat Forge declined 2.30%. 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).

Sunteck Realty gained 2.73% after the company announced that its board has approved an investment of approximately $10 million to $20 million in its wholly owned subsidiary (WOS), Sunteck Lifestyle International (SLIPL).

Sundaram-Clayton rallied 4.81% after the company entered into a business transfer agreement with Sandhar Ascast (SAPL) for the sale of its aluminum die-casting business at the Hosur plant for a total consideration of Rs 163 crore.

Quadrant Future Tek jumped 3.81%. The company announced that it has received a letter of acceptance (LOA) worth Rs 155.93 crore from RailTel Corporation of India for the supply of Kavach systems at East Central Railway.

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