Auto, Metal, and Banking Gains
Financial Stocks Lead Market Gains Amid Positive Global Cues
Indian stock markets started the week on a positive note, with the Sensex climbing 270 points and the Nifty nearing the 22,500 mark. Gains were led by financials, auto, metals, and power stocks, supported by positive cues from Asian markets following China’s stimulus measures aimed at boosting consumption.
Sectoral and Stock Performances
- Auto, banking, metal, power, and pharma stocks advanced 0.5% to 1%, driving market momentum.
- The BSE Midcap index surged nearly 1%, while the Smallcap index edged 0.2% higher.
- Top gainers on the Nifty included Bajaj Finserv, SBI Life Insurance, Dr. Reddy’s Labs, Trent, and Axis Bank.
- Britannia, Hero MotoCorp, Wipro, BPCL, and Nestle were among the biggest losers in early trade.
Among financials, IndusInd Bank jumped 3.5% following the Reserve Bank of India’s (RBI) reassurance about its financial stability, leading financial stocks to close 0.5% higher overall.
Bond Market: Investors Call for Reduction in Long-Term Bonds in FY26
Amid weak demand for ultra-long bonds, Indian bond market participants have urged the government to reduce the share of long-term bonds in the FY26 borrowing plan.
- Currently, the Indian government’s gross borrowing target for FY26 is ₹14.82 trillion, and investors suggest limiting ultra-long bond supply to 34-35% of the total borrowing.
- The RBI has sought market feedback on this proposal but has not issued any official response yet.
NPS Equity Funds Deliver Mixed Returns Over the Past Year
Returns from National Pension System (NPS) equity funds have varied widely, with some funds posting double-digit gains, while others struggled to generate returns.
- Top performer: DSP Pension Fund, which delivered a 14.82% return in the past year.
- Moderate performers: UTI and Kotak pension funds, which yielded around 3.5%.
- Underperformers: HDFC Pension Fund saw returns of 2.22%, while five other funds reported returns close to 1%.
- SBI Pension Fund reported a negative return of -2.79%, while Max Life Pension Fund barely broke even at 0.06%.
Ajmera Realty & Infra Eyes ₹320 Crore Revenue from New Mumbai Project
Ajmera Realty & Infra India Ltd. has secured a redevelopment project for the Ascot Co-operative Housing Society in Andheri West, Mumbai, aiming to generate ₹320 crore in revenue.
- This marks Ajmera Realty’s fourth new project, contributing to a total gross development value (GDV) of ₹2,770 crore.
- The company is focusing on both redevelopment and greenfield projects, backed by Mumbai’s improving infrastructure and rising real estate demand.
Real Estate Outlook: Strong Demand in Mumbai’s Emerging Areas
According to Prashant Thakur, Head of Research at Anarock Group, Mumbai’s real estate sector is seeing strong momentum, driven by:
- Major infrastructure projects nearing completion, enhancing connectivity.
- Increased investments in suburban and peripheral areas, fueling residential and commercial growth.
Stock Market Trading Slows as New Demat Account Openings Hit 21-Month Low
According to Motilal Oswal Financial Services, stock market participation has weakened, as reflected in:
- New demat account openings dropping to 2.3 million in February 2025, the lowest level since May 2023.
- Market trading activity declining, with Average Daily Turnover (ADTO) down 4% MoM to ₹289 lakh crore.
- Retail participation shrinking, as both cash and futures & options (F&O) trading volumes saw a notable decline.
- Mutual Fund AUM falling 1% MoM, but Systematic Investment Plan (SIP) inflows remaining steady at ₹26,000 crore.
Global Markets Update
Russian Rouble Strengthens Ahead of Trump-Putin Talks on Ukraine
The Russian rouble surged 1.2% against the U.S. dollar to 84.50, its highest level since June 2024, ahead of a planned call between Donald Trump and Vladimir Putin on Ukraine peace negotiations.
- The rouble also strengthened 2.0% against the Chinese yuan to 11.56 on the Moscow Exchange (MOEX).
- Investors anticipate improved U.S.-Russia relations, but market experts warn that the rally may be nearing its limit.
Tata Mutual Fund Introduces BSE Quality Index Fund
Tata Mutual Fund has launched the Tata BSE Quality Index Fund, a factor-based index fund focusing on high-quality companies.
- New Fund Offer (NFO) period: Open until March 28.
- Minimum investment: ₹5,000.
- Investment strategy: Targets companies with high Return on Equity (RoE), low leverage, and strong financial health.
- Benchmark & Fund Managers: The fund tracks the BSE Quality Index and is managed by Kapil Menon and Rakesh Prajapati.
European Stocks Remain Flat Amid Trade War Concerns
European equities were little changed on Monday, as investors remained cautious amid escalating trade tensions and Germany’s upcoming debt reform vote.
- The STOXX 600 index rose 0.1%, following a 1.1% gain on Friday.
- Oil & gas stocks gained 0.7%, while healthcare stocks added 0.6%.
- Investors are closely watching policy developments in the U.S. and China, as trade uncertainties weigh on global markets.
As global markets react to economic shifts and policy changes, investors will keep a close watch on central bank decisions, geopolitical developments, and corporate earnings in the coming weeks.
