IT, Auto Drive Sensex Above 80,000; Rupee Weakens 

HIGHLIGHTS

• Steel Secy defends 12% safeguard duty, says industry needs fair returns for capacity push
• Samsung mulls smartphone shift to India as Trump tariffs squeeze Vietnam exports
• LG Electronics likely to pause India IPO plans: Reports 
• Brokers connected to NSE co-location case receive fresh notices
• HCLTech drives gains for IT index post in-line January-March earnings
• Gold sees profit-booking; dollar index rebounds on trade developments

Indian equity markets extended their winning streak for the seventh consecutive session on Wednesday, supported by strong buying in Information Technology, Auto, and Pharma sectors. 

The Nifty50 index ended above the 24,300 mark, reaching a four-month high, while the BSE Sensex breached the 80,000 level for the first time since December 2024.

Overnight gains on Wall Street, sparked by strong corporate earnings and signals of easing US-China trade tensions, set the tone for domestic markets. Hints of de-escalation from US Treasury Secretary Scott Bessent in a closed door meeting further buoyed sentiment. 

SECTORAL PERFORMANCE 
IT stocks led the charge, with the index surging nearly 4%, as stocks like HCLTech, Wipro, Infosys, and Tech Mahindra rallied after upbeat forward guidance from key players. 

Autos followed, boosted by Tata Motors and select two-wheeler counters. The pharma sector saw selective buying, contributing to the broader market's resilience.

Top Gainers	% Change	Top Losers	% Change
NIFTY IT	4.3%	NIFTY CONSUMER DURABLES	-1.0%
NIFTY AUTO	2.4%	NIFTY PRIVATE BANK	-0.8%
NIFTY PHARMA	1.4%	NIFTY FINANCIAL SERVICES	-0.7%
NIFTY HEALTHCARE INDEX	1.3%	NIFTY PSU BANK	-0.6%
NIFTY REALTY	1.3%	NIFTY BANK	-0.5%

Indian government bond yields edged higher as early gains faded amid profit-booking and rising caution in the market. The benchmark 10-year gilt yield closed at 6.3294%, higher than its previous level of 6.3201%, after briefly touching 6.2953% earlier in the session—its lowest level since November 2021.

The initial drop in yields was driven by sustained optimism around the Reserve Bank of India’s dovish policy stance and expectations of continued liquidity support. However, as the yield touched a fresh three-year low in intraday trade, investors moved to lock in profits, leading to a reversal in price action.

Market participants noted that broader risk sentiment was also tempered by emerging geopolitical concerns. A recent terrorist attack on tourists in Jammu & Kashmir led to a shift in risk appetite, prompting some traders to pare exposure to longer-duration securities and adopt a more cautious stance.

Tenure	Today	Previous
10-year Gilt	6.33%	6.32%
5-year gilt	6.08%	6.06%
5-year OIS	5.66%	5.64%

The Indian Rupee ended weaker on Wednesday, snapping its recent momentum amid a firming dollar and rising geopolitical concerns. The currency faced downward pressure following a rebound in the US dollar index, which climbed to 99.26 on trade talks.

Unit	Today	Previous
Dollar/Rupee	85.42	85.19
Dollar Index	98.96	98.69
1-year Dollar/rupee premium (%)	2.10%	2.12%

OUTLOOK
Thursday’s session may see continued strength in IT, auto, and pharma sectors, supported by earnings momentum. However, banking stocks could see some profit-booking after their recent run-up, especially among PSU banks and private lenders like HDFC Bank and Kotak Mahindra Bank.

Geopotilical risks remain a wild card following the Jammu & Kashmir incident, which could lead to some volatility across asset classes. Globally, easing trade tensions between the US and China could bolster risk appetite and lend further support to Indian equities.

In the bond market, yields are likely to remain range-bound. The 10-year benchmark could consolidate around current levels as traders assess the geopolitical situation and the Reserve Bank of India’s liquidity stance.

The Indian rupee could see some pressure amid a firm dollar index and rising crude oil prices. 

Key Events & Data Due Thursday:

Economic Data

• US weekly jobless claims data
• US March existing home sales data
• US March core durable goods orders

Corporate Actions

• Jan-Mar Earnings: Hindustan Unilever, Nestle India, Axis Bank, SBI Cards and Payment Services, ACC, Accelya Solutions India, Adani Energy Solutions, Cyient, Indbank Merchant Banking Services, SBI Life Insurance Company, Sterling and Wilson Renewable Energy, Elecon Engineering Company, Indian Energy Exchange, Kirloskar Pneumatic Company, Laurus Labs, Macrotech Developers, L&T Technology Services, MphasiS, NELCO, Prime Securities, Shanthi Gears, Supreme Industries, Tanla Platforms, Persistent Systems, Tech Mahindra, Aavas Financiers, Sumeet Industries.
• Bannari Amman Spinning Mills board to consider fund raising
• Devyani International board to consider fund raising

Policy Events

• ECB's Lane Speaks