Opening Bell : Benchmarks likely to make flat-to-positive start on Wednesday
Indian equity benchmarks are likely to make flat-to-positive start on Wednesday after a significant drop in the previous session, ahead of U.S. President Donald Trump’s announcement on reciprocal tariffs. Some cautiousness may come as foreign institutional investors (FIIs) turned net sellers, selling equities worth Rs 5,901.63 crore on April 1. Investors will be looking ahead to the manufacturing PMI data to be out later in the day.
Some of the key factors to be watched:
GST collection grows 9.9% in March: The government data showed Gross Goods and Services Tax (GST) collection in March grew 9.9 per cent to over Rs 1.96 lakh crore.
India's tariff policy aims to regulate trade, protect industries, generate revenue: Commerce and Industry Minister Piyush Goyal stated India's tariff policy aims to regulate trade, protect domestic industries, and raise revenue through taxes on imports and exports.
India ranks 4th in forex reserves at $658.8 billion: Finance Minister Nirmala Sitharaman said that India is the fourth largest holder of foreign exchange reserves at $658.8 billion, enough for 11 months of imports. Despite global uncertainties, the Indian rupee has shown the least depreciation among major Asian currencies.
India should assess US demands through national lens: The think tank Global Trade Research Initiative (GTRI) said India must firmly assess each demand of the US through the lens of its own national priorities, development goals, and cultural values amid continuous pressure of America to amend trade policies.
Stocks of coal sector will be in limelight: India’s coal sector has crossed the 1 billion tonne (BT) milestone in cumulative production for the financial year 2024-25. This unprecedented feat underscores the Ministry of Coal’s relentless efforts to enhance production, streamline dispatches, and strengthen the nation’s energy security.
On the global front: The US markets ended mostly in green on Tuesday, while Asian markets are trading mixed on Wednesday, as investors awaited more details on U.S. President Donald Trump's reciprocal tariff announcements, set to be revealed on April 02, which he has dubbed Liberation Day.
Back home, extending losses for the second straight session, Indian equity benchmarks ended first trading session of FY26 on a weak note on Tuesday due to selling in Realty, Consumer Durables and IT shares amid heightened uncertainty ahead of the rollout of reciprocal tariffs by the US on April 2. Finally, the BSE Sensex fell 1390.41 points or 1.80% to 76,024.51, and the CNX Nifty was down by 353.65 points or 1.50% to 23,165.70.
Some of the important factors in trade:
India's exports to fall below $435 billion in 2024-25: Think tank GTRI said the country's merchandise exports, which have been contracting since October last year, are expected to decline slightly by the end of this fiscal year (FY25) and fall below $435 billion.
RBI to shift focus on growth over inflation in April policy meeting: Care Edge Ratings has asserted that the RBI’s monetary policy committee is expected to shift its focus from concerns around inflation to supporting growth in its next review meeting in early April. It said the monetary policy committee will go for another 25-basis-point reduction in the repo rate at April 7-9 meeting.
Centre’s fiscal deficit touches 85.8% of annual target by end of February 2025: The Controller General of Accounts (CGA) in its latest data has showed that the Centre’s fiscal deficit touched 85.8 per cent of the annual target by the end of February 2025. In actual terms, the fiscal deficit was Rs 13,46,852 crore during the April-February 2024-25 period.
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