Indices edge lower in early trade; breadth strong

The key equity benchmarks traded with minor losses in early trade. The Nifty traded below 23,200 level. Realty, pharma and media shares advanced while IT, consumer durables and bank stocks declined.

At 09:26 IST, the barometer index, the S&P BSE Sensex, fell 70.20 points or 0.09% to 76,295.85. The Nifty 50 index declined 18.55 points or 0.08% to 23,172.10.

The broader market broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.41% and the S&P BSE Small-Cap index added 0.91%.

The market breadth was strong. On the BSE, 2,196 shares rose and 686 shares fell. A total of 137 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 3,239.14 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 3,136.02 crore in the Indian equity market on 20 March 2025, provisional data showed.

Stocks in Spotlight:

Hindustan Unilever shed 0.08%. The companys board approved the investment to acquire a 14.3% stake in Lucro Plastecycle, a leading player in recycled flexible plastics. The investment aims to strengthen plastic circularity by increasing the availability of recycled content for flexibles, providing a roadmap for businesses to move towards sustainable plastic packaging, and addressing the challenge of hard-to-recycle flexible plastic.

Hindalco Industries declined 0.36%. The company plans to invest Rs 45,000 crore across aluminium, copper, and specialty alumina businesses to deliver both upstream and next-generation high-precision engineered products.

Glenmark Pharmaceuticals rose 1.11% after the companys subsidiary, Glenmark Pharmaceuticals Inc, USA, has received final approval from the United States Food & Drug Administration (US FDA) for Olopatadine Hydrochloride Ophthalmic Solution. Olopatadine Ophthalmic is used to treat itching of the eye caused by allergic conjunctivitis (pink eye).

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.55% to 6.743 as compared with the previous close of 6.747.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.2300, compared with its close of 86.3600 during the previous trading session.

MCX Gold futures for the 4 April 2025 settlement shed 0.25% to Rs 88,425.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.15% to 103.98.

The United States 10-year bond yield rose 0.33% to 4.247.

In the commodities market, Brent crude for May 2025 settlement advanced 31 cents or 0.43% to $72.31 a barrel.

Global Markets:

Asian stocks traded mixed on Friday as investors remained cautious about prolonged high-interest rates and the potential for increased trade tariffs under President Donald Trump.

Earlier this week, Trump announced that broad reciprocal tariffs, along with sector-specific duties, would take effect on April 2, fueling uncertainty in global markets.

Japanese consumer price index inflation grew slightly more than expected in February, with a rise in underlying inflation fueling bets that the Bank of Japan will keep raising interest rates this year. National CPI rose 3.7% year-on-year, slightly cooling from Januarys 4.0%. Core CPI, which excludes fresh food prices, increased 3.0%, compared to 3.2% in January. A more refined core measure, excluding both fresh food and energy, climbed 2.6%, up from 2.5% the previous month. Inflation is still well above the BOJs 2% target.

U.S. stock indices reversed early gains to close lower on Thursday, hovering near six-month lows as investor sentiment remained fragile. The S&P 500 fell 0.2% on Friday. The NASDAQ Composite fell 0.3%, while the Dow Jones Industrial Average closed flat.

Microchip Technology Inc. tumbled 6.5% after announcing plans to raise $1.35 billion through convertible stock to repay debt and enter a capped call transaction. Darden Restaurants surged 5% after reporting strong Q3 fiscal 2025 earnings.

Trumps tariff strategy remains a major market concern, especially as he wavers on measures against Canada and Mexico. Meanwhile, China, the eurozone, and other affected regions have outlined retaliatory tariffs, heightening fears of a full-blown trade war.

The US Labor Department data showed that first-time unemployment claims inched up last week. Initial jobless claims rose to 223,000 for the week ending March 15, up from a revised 221,000 in the previous week.

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