Equity Indices Surge To 3-Month High; Rupee Strengthens On FII Inflows 

HIGHLIGHTS

• SEBI's internal committee to consider NSE's IPO proposal
• IDFC First Bank approves raising ₹75 billion from Warburg, ADIA affiliates
• Waaree Renewable jumps after Jan-Mar revenue expands by over 70%
• KEI Industries stock climbs 4% after Goldman Sachs upgrades to ‘buy’
• Sonata Software tumbles as firm says international revenue could fall short of forecast in Q4
• KFin Tech surges 8% after firm buys 51% in Ascent Fund Services for $34.7 million

Indian equity markets extended their upward momentum on Thursday, with the Nifty 50 closing above 23,800 and the Sensex ending above 78,500 for the first time in over three months. This marked the fourth consecutive session of gains for both indices. On a weekly basis, the benchmark indices posted their strongest advance in more than two years, with the Nifty 50, Sensex, and Nifty Midcap 100 each gaining over 4%.

The rally was broadbased, led by strong buying in financials and real estate stocks. The Nifty Bank index outperformed, climbing over 6% for the week—its best performance in nearly two years—reflecting renewed investor confidence in the sector.

SECTORAL PERFORMANCE 
All sectoral indices ended the day in positive territory, with telecom, PSU banks, oil & gas, pharma, auto, energy, and private banks rising between 1% and 2%. The IT sector remained subdued during the session due to a cautious outlook from Wipro but recovered to close marginally higher by 0.2%.

In individual stocks, Wipro declined 4% following weak quarterly guidance, while Sonata Software slipped 6% on concerns over lower international business revenue. Waaree Renewable Technologies rose 8% after reporting a sharp rise in march quarter profit and revenue.

Top Gainers	% Change
NIFTY FINANCIAL SERVICES	2.3%
NIFTY BANK	2.2%
NIFTY OIL & GAS	1.2%
NIFTY PHARMA	1.2%
NIFTY AUTO	1.0%

Indian government bond yields continued their downward trend this week, led by strong buying interest in shorter-duration securities and the Reserve Bank of India’s ongoing liquidity support. The benchmark 10-year gilts yield closed at 6.3709% on Thursday, down from 6.3889% in the previous session, marking its fifth consecutive weekly decline. This level is the lowest since mid-December 2021.

In a holiday-shortened trading week, the 10-year yield dropped nearly 7 basis points, reflecting increased demand from investors anticipating continued support from the central bank through open market operations. 

Shorter-duration bonds witnessed a steeper fall, with the five-year yield slipping by 13 basis points over the week. This marks the eighth consecutive weekly decline for the five-year note. The move was attributed to aggressive purchases by foreign banks, seeking to capitalise on India’s relatively stable interest rate environment and the Reserve Bank’s signal to maintain supportive policy measures.

Tenure	Today	Previous
10-year Gilt	6.37%	6.39%
5-year gilt	6.10%	6.12%
5-year OIS	5.68%	5.68%

The Indian rupee ended the week on a firmer footing, strengthening for the fourth straight session amid continued foreign inflows and broader dollar weakness. The currency appreciated by 30 paise to close at 85.38 per US dollar on Wednesday, compared to 85.68 in the previous session. 

Over the past four sessions, the rupee has gained approximately ₹1.31, marking a significant rebound after recent pressure from global uncertainties. The currency’s strength has been driven by renewed interest from foreign institutional investors, who turned net buyers on April 15 after a nine-day selling streak. On that day, FIIs invested ₹60.66 billion crore in Indian equities, making it the third-largest single-day inflow in 2025. This was followed by another ₹39.36 billion of inflows on Wednesday.

Unit	Today	Previous
Dollar/Rupee	85.38	85.68
Dollar Index	99.32	99.14
1-year Dollar/rupee premium (%)	2.13%	2.19%

OUTLOOK
Indian equity markets are likely to open on a steady note on Monday, with investor sentiment supported by robust domestic fundamentals and limited global headwinds. With the Nifty trading near its previous swing high of 23,800, attention will turn to upcoming earnings from key companies such as Infosys, HDFC Bank, and ICICI Bank, which are expected to guide near-term market direction.

The financial markets were closed on Friday for the Good Friday holiday.

On the bond front, participants will be watching for signals from the Reserve Bank of India, particularly in relation to liquidity management and potential open market operations, which could affect yields across tenors.

The Indian rupee, having recently strengthened on the back of renewed foreign institutional inflows, is expected to remain sensitive to global risk sentiment and monetary policy signals from major central banks. Meanwhile, the US’s recent tariff actions on Chinese goods have contributed to a shift in capital flows, with emerging market currencies, including the Rupee, drawing investor interest. Any fresh geopolitical or macroeconomic developments will be closely tracked for potential impact on equity, bond, and currency markets.

Key Events & Data Due Friday and Saturday
Economic Data:

• US Fed's Balance Sheet
• Japan March National Core CPI
• India Weekly FX reserve data

Corporate Events:

• Jan-Mar Earnings: ICICI Bank, HDFC Bank, Just Dial, Mastek, Network18 Media & Investments, Yaari Digital Integrated Services, Yes Bank, Laxmi Goldorna House, and Teamo Productions HQ
• Sky Gold and Diamonds board to consider fund raising
• Tembo Global Industries board to consider fund raising
• Ujaas Energy board to consider bonus
• Mastek board to consider dividend

Policy:

• US FOMC Member Daly Speaks