In the week ended on Friday, 21 March 2025, the S&P BSE Sensex soared 3,076.60 points or 4.17% to settle at 76,905.51. The Nifty 50 index surged 953.20 points or 4.26% to settle at 23,350.40. The BSE Mid-Cap index advanced 7.09 % to close at 41,831.57. The BSE Small-Cap index rose 7.87% to end at 47,296.81.

Weekly Index Movement:

Domestic stock indices saw minor gains on Monday. The S&P BSE Sensex advanced 341.04 points or 0.46% to 74,169.95. The Nifty 50 index added 111.55 points or 0.50% to 22,508.75.

The domestic equity benchmarks surged on Tuesday. The S&P BSE Sensex climbed 1,131.31 points or 1.53% to 75,301.26. The Nifty 50 index surged 325.55 points or 1.45% to 22,834.30.

Domestic equity benchmarks closed with moderate gains on Wednesday, marking a third consecutive day of increases. The S&P BSE Sensex advanced 147.79 points or 0.20% to 75,449.05. The Nifty 50 index added 73.30 points or 0.32% to 22,907.60. In the three consecutive sessions, the Sensex and the Nifty jumped 2.19% and 2.28%, respectively.

The domestic equity benchmarks closed with robust gains on Thursday, marking their fourth consecutive day of increase. The S&P BSE Sensex surged 899.01 points or 1.19% to 76,348.06. The Nifty 50 index soared 283.05 points or 1.24% to 23,190.65. In the four consecutive sessions, the Sensex and the Nifty jumped 3.41% and 3.54%, respectively.

The key equity benchmarks ended with strong gains on Friday, rising for the fifth consecutive trading session, driven by strong foreign fund inflows that bolstered market sentiment and investor confidence. The S&P BSE Sensex, surged 557.45 points, or 0.73%, to 76,905.51. The Nifty 50 index rallied 159.75 points, or 0.69%, to 23,350.40. In the five trading sessions, the Sensex and the Nifty jumped 4.16% and 4.25%, respectively.

Economy:

Organisation for Economic Co-operation and Development (OECD), on Monday, lowered India's FY26 growth forecast to 6.4% from 6.9%, citing persistent uncertainty. The 38-member OECD also revised India's FY27 growth forecast downward to 6.6% from 6.8%. However, the government can take comfort in the projected increase from 6.3% growth in the current fiscal year to 6.4%. India is projected to remain the fastest-growing major economy over the next two years.

India's trade deficit narrowed sharply to $14.05 billion in February, down from $22.9 billion in January, mainly due to a sharp decline in imports. This marks the lowest deficit since August 2021. Merchandise exports stood at $36.91 billion in February against $36.43 billion in January, while imports were lower at $50.96 billion compared with $59.42 billion in the month prior. Services exports in February were estimated at $35.03 billion and imports at $16.55 billion against $38.55 billion and $18.22 billion, respectively, in January.

India's wholesale price index (WPI)-based inflation rose to 2.38% (provisional) in February, 2025, primarily due to an increase in prices of manufactured food products, food articles, other manufacturing, non-food articles, and textiles, etc. Data released by the Ministry of Commerce and Industry showed on Monday. This is higher than the WPI rate in January, which stood at 2.31%.

The RBI's March Bulletin highlights the Indian economy's strong resilience and growth momentum despite global turbulence. Key factors include robust sectoral performance, rising consumption, and increased government spending. The National Statistics Office projects a steady 6.5% growth for 2024-25, supported by a 6.2% real GDP expansion in Q3. India's 2023-24 growth, excluding the post-COVID rebound, was the highest in over a decade, indicating stability. Both manufacturing and services sectors show positive trends, with increased activity and employment, further reinforcing the economy's positive trajectory.

Stocks in Spotlight:

Indusind Bank rose 2.4%. The Reserve Bank of India (RBI) reassured the private lender's financial stability. The RBI's statement, addressing recent market concern, affirmed that IndusInd Bank is 'well-capitalised' and maintains a 'satisfactory' financial position.

Further, the bank said that its board has decided to appoint an independent professional firm to conduct a comprehensive investigation to identify the root cause of the discrepancies observed in its derivative portfolio. The independent professional firm will also assess the correctness and impact of the accounting treatment of the derivative contracts with regard to the prevailing accounting standards/guidance, identify any lapses, and establish accountability in relation to the discrepancies identified in the bank’s derivative portfolio.

Tata Motors jumped 7.26%. The company announced that it will increase the prices upto 2% across its commercial vehicle range, effective from 1st April 2025.

Maruti Suzuki India added 2.34% after the company announced that it will increase the prices of its cars by 4%, effective from April 2025, due to rising input cost and operational expenses.

Hyundai Motor India gained 3.05%. The company announced that it will increase prices up to 3%, which will be effective in April 2025. The company stated that the price hike is due to rising input costs, increased commodity prices, and higher operational expenses, among other factors. The quantum of price increase will vary based on the variants and models.

Lupin surged 7.5%. The pharma major announced that it has received tentative approval from the United States Food and Drug Administration (U.S. FDA) for its abbreviated new drug application (ANDA) for Amifampridine Tablets, 10 mg.

Bajaj Finserv rose 1.81%. The company has signed Share Purchase Agreements (SPAs) to acquire Allianz SE's 26% stake in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC), gaining full ownership. The agreed consideration for the 26% stake is Rs 13,780 crore for BAGIC and Rs 10,400 crore for BALIC.

Sun Pharmaceutical Industries rallied 6.1%. The company’s subsidiary, TARO Pharmaceuticals Inc., completed the 100% acquisition of Antibe Therapeutics Inc. of Canada for a total consideration of $4.5 million

Bajaj Auto surged 7.61%. The company's board approved the re-appointment of Rajivnayan Rahulkumar Bajaj as the managing director (MD) & chief executive officer (CEO) for a period of five years, effective from 1 April 2025.

UltraTech Cement jumped 5.24%. The company said that it commissioned a combined capacity of 1.2 million tonnes per annum (MTPA) at its Hirmi plant, Chhattisgarh, and Roorkee unit, Uttarakhand, as part of its capacity expansion programs.

Zydus Lifesciences added 4.02%. The firm said that it has received final approval from the United States Food and Drug Administration (US FDA) to manufacture Apalutamide tablets, 60 mg.

Aurobindo Pharma soared 9.63%. The company’s subsidiary, Apitoria Pharma, received an establishment inspection report (EIR) from the U.S. Food and Drug Administration for its active pharmaceutical ingredient (API) facility in Telangana.

Adani Enterprises surged 6.29%. The company, through its subsidiary Kutch Copper, formed a 50/50 partnership with Praneetha Ventures to launch Praneetha Ecocables (PEL). It will focus on manufacturing and distribution of metal products, cables, and wires. PEL, based in Ahmedabad, is newly incorporated with an authorized and paid-up share capital of Rs 10 lakh.

Manappuram Finance surged 12.59%. Global private investment firm Bain Capital acquired joint control of the Kerala-based non-banking financial company. Bain Capital has entered into definitive agreements to acquire joint control in Manappuram Finance through its affiliates, i.e., BC Asia Investments XXV and BC Asia Investments XIV (Bain Capital), in partnership with the existing promoters, who will continue to stay fully invested.

Global Markets:

The Bank of England kept interest rates unchanged on Thursday, maintaining the benchmark rate at 4.5%. This decision comes as the U.K. economy grapples with global trade uncertainties and the potential for stagnation domestically.

Sweden’s central bank on Thursday voted to hold its key rate at 2.25% and said it would “remain at this level going forward,” after inflation came in above-target at 2.9% in February.

The Swiss National bank on Thursday trimmed its key interest rate by a quarter percentage point to 0.25%.

Average wages in the U.K. increased 5.9% year on year across the November 2024 to January 2025 period, the Office for National Statistics said Thursday. Wage growth, including bonuses, came in at 5.8%. The average regular figure was 6.1% for the private sector and 5.3% in the public sector.

China's retail sales rose by 4.0% in the January-February period from a year ago, compared with the 3.7% year-on-year growth in December. The country's industrial production climbed 5.9% in the first two months of the year from a year ago, slower than the 6.2% growth in December. Its fixed asset investment, reported on a year-to-date basis, rose by 4.1%, beating the 3.2% increase last year.

Japanese consumer price index inflation (CPI) rose 3.7% year-on-year, slightly cooling from January’s 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 Bank of Japan (BOJ)’s 2% target.

The Taiwan’s central bank left the benchmark discount rate at 2%. The central bank held its policy rate unchanged, prompted by lingering concerns over inflation and uncertainty about new U.S. trade tariffs.

The People’s Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%.

The Bank of Japan kept interest rates steady at 0.5%, as expected, citing the need to assess the impact of potential U.S. tariffs on Japan’s export-driven economy.

Japan’s trade balance increased less than anticipated in February, amid heightened concerns regarding U.S. trade tariffs. Trade balance rose to a surplus of 584.5 billion yen ($3.91 billion), according to government data released on Wednesday. The print improved from a deficit of 2.76 trillion yen in January. The softer surplus was largely due to weaker-than-expected export growth. Exports grew 11.4% year-on-year, up from the 7.3% pace seen in January.

In United States, the Fed maintained its benchmark overnight interest rate in the 4.25%-4.50% range and signaled that two quarter-point rate cuts are likely later this year

As per the Fed’s quarterly economic projections, real GDP growth is expected to slow to 1.7% by the end of 2025, down from the 2.1% forecast in December. The unemployment rate is projected to rise slightly to 4.4%, compared to the previous estimate of 4.3%. Core inflation is now expected to end the year at 2.8%, up from the prior forecast of 2.5%.

The University of Michigan’s Consumer Sentiment Index fell to 57.9 in March—its lowest since November 2022—down from 64.7 in February. The decline reflects growing uncertainty over tariffs and economic stability.

U.S. retail sales rose by 0.2% last month, following a revised 1.2% decline in January. This growth, however, was weaker than the previously predicted 0.6% increase.

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.