Fresh OMOs Drag Gilt Yields To Over 3-year Low 

Highlights

• Central Bank of India shares slide nearly 10% post-QIP
• Godrej Properties shares surge 5% after firm sells ₹20 billion homes at launch of luxury project in Noida
• Bharat Electronics shares tank 5% after the company misses FY25 order inflow guidance  
• TVS Motor shares rally 3% as sales hit record high in FY25
• Hyundai Motor India shares fall on muted March sales, SUVs dominate portfolio

The benchmark indices snapped two-day losing streak today amid buying across the sectors. The market participants are awaiting US President Donald Trump’s tariffs announcement today.

BSE Midcap and Smallcap indices rose nearly 1% each.

 

SECTORAL PERFORMANCE 
All the sectoral indices ended in the green with FMCG, Consumer Durables, Realty up 1-3%.

Top Gainers	% Change	Top Losers	% Change
NIFTY REALTY	3.61%
NIFTY CONSUMER DURABLES	2.51%
NIFTY FMCG	1.13%
NIFTY BANK	1.02%
NIFTY PHARMA	0.87%

          

Yields on 10-year Indian government bond slumped nearly 10 basis point today due to the Reserve Bank of India’s announcement of government bond purchases in April.  The benchmark 10-year bond yield ended at 6.4806%, the lowest level since January 2022, and its biggest one-day drop since May 2023.

The RBI on Tuesday said it will buy bonds worth ₹800 billion in four tranches of ₹200 billion each. 

Tenure	Today	Previous
10-year Gilt	6.48%	6.58%
5-year gilt	6.34%	6.44%
5-year OIS	5.83%	5.93%

Indian rupee closed slightly weaker after tumbling 21 paise during early trades today ahead of the reciprocal tariffs announcement by the US President Donald Trump.

Driven by rising crude prices and escalating concerns over reciprocal tariffs, the dollar/rupee is expected to find strong support around 85.50 with a potential rebound towards 86.00-86.20 levels.

Unit	Today	Previous
Dollar/Rupee	85.50	85.47
Dollar Index	103.85	104.21
1-year Dollar/rupee premium (%)	2.18%	2.22%

OUTLOOK
Equity markets will react to the announcement of reciprocal tariffs and the initial response from global markets, which could influence sentiment. Additionally, the scheduled weekly expiry may add to the volatility.

Any imposition of tariffs on Indian goods could dent investor sentiment, while relief from such tariffs would provide much-needed boost.

Wednesday’s range for the dollar/rupee could be between 85 and 86 depending on the tariffs that will be announced by Trump. 

Key Events & Data Due Thursday
Economic Data:

• China March Caixin Services PMI
• US Weekly Initial Jobless Claims Data
• US Februaray Trade Data
• US March S&P Global Composite PMI
• US March ISM Non-Manufacturing Employment Data

Corporate Actions:

• Fervent Synergies board to consider preferential issue of shares
• Indrayani Biotech board to consider right issue of equity shares 
• Parag Milk Foods board to consider right issue of equity shares
• POCL Enterprises  board to consider preferential issue of shares
• Remsons Industries  board to consider preferential issue of shares

Policy:

• ECB's De Guindos Speaks
• ECB's Schnabel Speaks
• OPEC Meeting