Quote on Market Round Up by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Market Round Up by Shrikant Chouhan, Head Equity Research, Kotak Securities
The Nifty-50 Index and Sensex each lost around 2.5% each in the past week as markets resumed the risk-off sentiment. While the mid-cap index lost around 2.4% and small-cap index lost around 1.4% in the past week. Global equity markets witnessed a sharp selloff in the aftermath of the US imposing reciprocal tariffs on most major economies. Indian Indices outperformed, as Indian markets did not react as much as other markets yesterday, following the news flows on tariffs. Sector-wise, most indices ended in red with Capital goods (-5.0%), IT (-8.0%), Metal (-7.2%), Realty (-3.5%), Oil&Gas (-3.9%) and Auto (-5.6%) sectors as major sectoral losers. Other sectors lost between 1 to 3% each. While sectors like Bank Nifty (+0.2%), Telecom (+3%) and FMCG (0.4%) reported gains for the week. Within the Nifty, Tata consumer (+8.4%), IndusInd Bank (+5%) and Trent (+4.6%) gained the most, while Hindalco (-11.4%), HCL Tech (-10.3%) and Tata Motors (-9.2%) lost the most. FPI were net buyers in the past five days, while DIIs were net sellers in the same period. On the economy front, (1) CAD/GDP was at 1.1% in 3QFY25, (2) total central government receipts in 11MFY25 were 13.4% higher yoy and (3) the center’s capex growth was 0.8% in 11MFY25. Meanwhile, the USD-INR appreciated 0.4% over the past week.
In Global, the US government announced ‘discounted’ single-rate country-specific tariffs benchmarked against existing tariff and non-tariff rates. India saw tariff of 26%, lower than most countries. The bigger concern will be risks of retaliatory tariffs, which could impact global trade and investment, US and global growth and inflation. The US dollar weakened sharply, with the euro reaching a six-month high of $1.1037. The yield on the benchmark U.S. 10-year Treasury note dropped 14.6 basis points to 4.049%. In Europe, traders ramped up bets of ECB rate cuts despite the trade war threatening to stoke inflation, on hopes policymakers would take steps to stimulate growth. European Union is preparing further countermeasures against U.S. tariffs if negotiations fail. In Asia, China faces a net tariff of 54% on its exports to the U.S. starting April 9. This could shave 15% of China’s exports and between 2 and 2.5 percentage points of its GDP growth
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