BAROMETERS TRADE WITH TINY GAINS; BREADTH NEGATIVE

The domestic equity benchmarks traded with minor gains in early trade, supported by softer-than-expected inflation data from both the U.S. and India, which eased investor concerns. The Nifty traded above the 22,450 mark. Trading could be volatile due to the weekly Nifty50 F&O series expiry today.

Metal, bank and financial services shares advanced while auto, media and IT shares corrected.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 62.34 points or 0.08% to 74,092.50. The Nifty 50 index added 5.60 points or 0.02% to 22,476.10.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.36% and the S&P BSE Small-Cap index declined 0.61%.

The market breadth was negative. On the BSE, 1,365 shares rose and 1,428 shares fell. A total of 119 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,627.61 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,510.35 crore in the Indian equity market on 12 March 2025, provisional data showed.

Economy:

India�s retail inflation eased to a seven-month low of 3.61% in February 2025, down from 4.31% in January, as food price pressures softened, according to government data released on Wednesday. This brings inflation below the Reserve Bank of India�s (RBI) medium-term target of 4% for the first time since August 2024.

Meanwhile, India�s industrial output growth picked up to 5% year-on-year in January 2025, compared to 3.2% in December 2024.

Stocks in Spotlight:

Bharat Electronics (BEL) advanced 1.75% after the company received an order worth Rs 2,463 crore from the Indian Air Force for Ashwini Radars.

NTPC Green Energy shed 0.33%. The company�s subsidiary, NTPC Renewable Energy, successfully commissioned the final phase of capacity at its Shajapur project in Madhya Pradesh.

Coromandel International slipped 0.03%. The company has signed a definitive agreement to acquire a 53% controlling stake in NACL Industries for Rs 820 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 1.69% to 6.796 as compared with previous close 6.791.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.0750, compared with its close of 87.2250 during the previous trading session.

MCX Gold futures for 4 April 2025 settlement grew 0.18% to Rs 86,840.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.03% to 103.63.

The United States 10-year bond yield fell 0.46% to 4.296.

In the commodities market, Brent crude for May 2025 settlement gained 2 cents, or 0.03% to $70.97 a barrel.

Global Markets:

Most Asian shares traded lower on Thursday, following an overnight rebound in U.S. tech stocks. However, persistent concerns over trade tensions and global economic uncertainties suggest that market volatility is not going away anytime soon.

On Wednesday, major U.S. stock indices closed higher after a cooler-than-expected US CPI inflation report, but gains were tempered by renewed tariff threats from President Donald Trump. The S&P 500 climbed 0.5%, while the tech-heavy NASDAQ Composite surged 1.2%. The Dow Jones Industrial Average, however, edged 0.2% lower.

Inflation data showed a slight cooling, with the U.S. consumer price index (CPI) rising 2.8% year-over-year in February, down from January`s 3% increase. The core CPI, which excludes volatile food and energy prices, recorded a 3.1% uptick�its slowest pace since 2021.

Despite easing inflation, investors remain wary. Trump`s decision to impose 25% tariffs on all steel and aluminum imports has reignited fears of higher prices, potentially offsetting any economic relief from cooling inflation.

The European Union quickly responded, announcing counter-tariffs on $28 billion worth of U.S. goods, set to take effect in April. Canada followed suit, slapping retaliatory tariffs on $21 billion worth of American imports, including steel and aluminum. As tensions mount, concerns of a global trade war are intensifying, raising the risk of rising consumer prices and potential job losses across key industries.

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