Trump’s Auto Tariff Singes Few, Others Look At Broader Picture

Highlights
•    Tata Motors shares slumps as Trump tariffs on auto imports may hurt JLR sales 
•    Bajaj Housing Finance surges on inflows due to bi-annual index rebalancing exercise
•    Ashok Leyland shares decline 3% after promoter pledges shares worth over ₹60 billion 
•    Adani Energy shares jump 7% on deal with REC arm to buy out Mahan Transmission
•    Dixon Tech shares rise on announcing JV with Signify Innovations

The Indian equity market closed the March F&O series on a strong note, with the Sensex and Nifty 50 rising 0.4-0.5%. The Nifty index has advanced 4.6% in the March series. The broader market was mixed with the Nifty Bank climbing 0.7% and Nifty Auto slipping 1%.

 SECTORAL PERFORMANCE 
Auto stocks were weighed down by US President Donald Trump's order to impose 25% tariff on auto import.  Tata Motors fell 6% as the tariff is expected to impact 30% of Jaguar Land Rover’s volumes. Samvardhana Motherson, Sona BLW, and Bharat Forge also ended lower on tariff concerns. Pharma stocks also remained under pressure on uncertainty around Trump tariff plan.

Except auto and pharma, all other sectoral indices ended in the green with media, oil & gas, realty rose a percent each.

Top Gainers	% Change	Top Losers	% Change
NIFTY MEDIA	1.52%	NIFTY AUTO	-1.04%
NIFTY OIL & GAS	1.36%	NIFTY PHARMA	-0.40%
NIFTY REALTY	1.35%	NIFTY HEALTHCARE INDEX	-0.22%
NIFTY FINANCIAL SERVICES	0.73%
NIFTY BANK	0.72%

Yields on 10-year Indian government bond yields ended flat as traders booked profits after the benchmark yield dropped to a 38-month low due to heightened expectations of policy easing by the RBI.

Investors are betting on another rate cut at the RBI on April 9, and likely change in the policy stance to accommodative 
Market participants awaited the government's borrowing plan for Apr-Oct due later in the day.  Finance ministry and RBI officials met on Wednesday to decide the amount.

Tenure	Today	Previous
10-year Gilt	6.60%	6.60%
5-year gilt	6.49%	6.50%
5-year OIS	5.93%	5.93%

The Indian rupee weakened against the US dollar today driven by risk aversion fuelled by US President Donald Trump’s announcement of a new 25% tariff on all automotive imports, reignited fears of a global trade war. 

Meanwhile, the rupee also faced pressure from liquidity constraints and month-end demand for dollars from importers. However, weak American currency and foreign fund inflows into the Indian capital market have supported the rupee at lower levels. 

Unit	Today	Previous
Dollar/Rupee	85.78	85.71
Dollar Index	104.02	103.83
1-year Dollar/rupee premium (%)	2.27%	2.23%

OUTLOOK
Indian equity markets sentiment remain positive due to the shift in FPI stance, coupled with strength in banking and financial majors and rotational support from other heavyweights. However, news related to US tariffs continues to trigger occasional volatility. 

The rupee is likely to trade in range for Tuesday is 85.60-86.25. Markets awaits todays US GDP data and Friday’s US PCE prices index data while it also awaits for the decisions taken from the US and India tariffs meeting which is going on in New Delhi 

Key Events & Data Due Friday

Economic Data:
 - India Oct-Dec Balance of Payments Data 
 - India February Fiscal Data
 - India Weekly FX Reserves Data
 - US February PCE price index 
 - US Baker Hughes Oil Rig Count Data

Corporate Actions:
 - Ashiana Housing board to consider dividend
 - DCM Shriram Industries board to consider dividend
 - Nitin Fire Protection Industries board to consider Earnings
 - AION-TECH SOLUTIONS board to discuss fundraising plans
 - MBL Infrastructure board to discuss fundraising plans
 - Minda Corporation board to discuss fundraising plans
 - Lancor Holdings board to discuss fundraising plans
 - Simplex Infrastructures board to discuss fundraising plans

Policy:
 - ECB's De Guindos Speaks  
 - Fed Vice Chair for Supervision Barr Speaks