Nifty trades above 24,150; PSU Bank shares rally

The key equity benchmarks traded with decent gains in mid-morning, supported by RBIs move to ease liquidity norms. Investor sentiment remained positive, aided by continued foreign institutional inflows. The Nifty traded above the 24,150 level.

PSU Bank shares jumped as the Reserve Bank of India (RBI)'s measured easing of liquidity norms bolsters banking sector sentiment, the RBI announced that retail deposits accessed via internet and mobile banking will attract an additional run-off factor of only 2.5%, instead of the steeper 5% initially suggested in last years draft guidelines. The index soared for the sixth consecutive trading session.

At 11:25 IST, the barometer index, the S&P BSE Sensex added 277.09 points or 0.35% to 79,654.82. The Nifty 50 index rose 69.35 points or 0.29% to 24,194.90.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 0.85% and the S&P BSE Small-Cap index advanced 1.04%.

The market breadth was strong. On the BSE, 2,619 shares rose and 1,108 shares fell. A total of 166 shares were unchanged.

Economy:

In a relief to banks, the Reserve Bank of India has finalized its Liquidity Coverage Ratio (LCR) guidelines, reducing the proposed additional run-off factor on internet and mobile banking-enabled retail deposits to 2.5%, effective 1 April 2026. Under the new norms, stable and less stable retail deposits will now attract run-off factors of 7.5% and 12.5%, respectively. The RBI also lowered the run-off rate on wholesale funding from non-financial entities like trusts and LLPs to 40% from 100%, aiming to better reflect funding stability. These changes are expected to improve banks' LCR by about 6% while ensuring continued compliance with minimum regulatory

The combined Index of Eight Core Industries (ICI) increased by 3.8 per cent (provisional) in March 2025, as compared to 3.4% in February 2025, the production of cement, fertilizers, steel, electricity, coal and refinery products recorded positive growth in March, 2025. Indias core sector registered a moderate growth of 4.4% in FY25, easing from the stronger 7.6% expansion seen in FY24.

Buzzing Index:

The Nifty PSU Bank index rallied 2.04% to 6,820. The index surged 11.94% for the six trading sessions.

Central Bank of India (up 4.19%), Indian Overseas Bank (up 3.18%), Canara Bank (up 3.08%), Bank of Baroda (up 2.9%), Indian Bank (up 2.72%), UCO Bank (up 2.05%), State Bank of India (up 1.9%), Punjab & Sind Bank (up 1.9%), Bank of Maharashtra (up 1.87%) and Punjab National Bank (up 1.71%) surged.

Stocks in Spotlight:

Aditya Birla Money declined 1.98% after the company reported 43.31% decline in standalone net profit to Rs 9.33 crore in Q4 FY25 as against Rs 16.46 crore posted in Q4 FY24. Total income fell by 13.76% year on year (YoY) to Rs 99.89 crore in the quarter ended 31 March 2024.

Lotus Chocolate Company was locked in lower circuit of 5% after the companys standalone net profit tumbled 64.5% to Rs 1.42 crore in Q4 FY25 as against Rs 4 crore posted in Q4 FY24. However, revenue from operations surged 139.21% year-on-year (YoY) to Rs 157.45 crore in the quarter ended 31 March 2025.

Alok Industries zoomed 15.91% after the companys consolidated net loss reduced to Rs 74.47 crore in Q4 FY25 from a net loss of Rs 215.93 crore posted in Q4 FY24. Revenue from operations fell 35.14% year on year (YoY) to Rs 952.96 crore in the quarter ended 31 March 2025.

Global Market:

Dow Jones futures jumped 127 points early this morning, signaling a potential bounce-back for U.S. equities after a rocky start to the week.

Most Asian markets advanced on Tuesday. But gains were kept in check after Wall Street stumbled, weighed down by President Trump intensifying his public pressure on Federal Reserve Chairman Jerome Powellagain raising eyebrows over the Feds independence.

Meanwhile, tensions between Washington and Beijing flared up further. China slapped sanctions on several U.S. lawmakers, officials, and NGO leaders, accusing them of egregious behaviour over Hong Kong-related issues. The move comes on the heels of U.S. sanctions imposed last month on Chinese and Hong Kong officialsan action that Beijing has "strongly condemned," according to foreign ministry spokesperson Guo Jiakun.

Back in the U.S., all three major indexes slid overnight as investors digested Trumps Powell tirade and a lack of progress on global trade talks. The Dow tumbled 2.48%, the S&P 500 sank 2.36%, and the Nasdaq dropped 2.55%.

Powell, for his part, reminded everyone last week that the Feds independence is not just traditionits "a matter of law." Markets are now trying to parse whether Trumps threats are just more rate-cut rhetoric or something more serious.

Adding to the global gloom, a leading brokerage trimmed its global growth forecast on Monday. Blaming the ongoing tariff drama and mounting uncertainty from U.S. trade policy, it now expects global GDP to grow just 2.8% in 2025 and 3% in 2026down 30 and 20 basis points, respectively, from previous estimates. One-third of the downgrade stems from the U.S., with the rest spread across China, Japan, and emerging markets.

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