Indian equity benchmarks are set for a cautious opening on Tuesday, marking the first trading session of the new financial year. Market volatility is anticipated later in the day as investors await the U.S. government's reciprocal tariff announcements, scheduled to take effect on April 2.

Key Market Factors to Watch:

Infrastructure Sector Growth Slows to 2.9% in February
The output of eight key infrastructure sectors dropped to a five-month low of 2.9% in February, significantly lower than the 7.1% growth recorded a year ago.

India’s Current Account Deficit Remains at 1.1% of GDP in Q3FY25
India’s current account deficit stood unchanged at 1.1% of GDP in the third quarter, amounting to USD 11.5 billion, compared to USD 10.4 billion in the same period last year.

India, Japan Sign Loan Agreements Worth JPY 191.736 Billion
India and Japan have signed loan agreements for six projects, including forest management, urban transport, water supply, and aquaculture development.

Forex Reserves Rise to USD 658.8 Billion
The Reserve Bank of India (RBI) reported a USD 4.529 billion increase in foreign exchange reserves, reaching USD 658.8 billion as of March 21, marking the third consecutive week of gains.

Cabinet Approves Rs 22,919 Crore Electronics Component Scheme
Union Minister Ashwini Vaishnaw announced that the Union Cabinet has approved an Electronics Component Manufacturing Scheme with an outlay of Rs 22,919 crore to boost the sector.

Auto Industry Stocks in Focus
Traders are closely watching the release of automobile sales and production data, expected later in the day.

Global Market Trends:

Wall Street Ends Higher Amid Tariff Concerns
Despite investor concerns over potential inflationary effects and high-interest rates due to Trump's tariff policies, U.S. markets closed mostly higher on Thursday.

Asian Markets Trade in Green
Most Asian markets are witnessing gains as investors react positively to China’s measures to counter deflation and robust GDP and PMI data from the region.

Domestic Market Recap:

On Friday, Indian stock markets ended lower, mirroring weak global trends due to rising tariff concerns and anticipation of a crucial U.S. inflation report. The BSE Sensex dropped 191.51 points (0.25%) to close at 77,414.92, while the Nifty fell 72.60 points (0.31%) to 23,519.35.

Key Trade Influences:

Oil Prices Ease Amid Tariff Uncertainty
Crude oil prices, which had been rising for three consecutive weeks, softened as concerns grew over potential demand disruptions from the U.S. tariff war.

RBI Expected to Cut Rates by 25 bps in April
India Ratings and Research (Ind-Ra) anticipates that the RBI may reduce the benchmark interest rate by 25 basis points in its upcoming policy review to stimulate economic growth.

Industry Credit Growth at 7.3% in Late February
The RBI’s latest data reveals that credit to the industry grew by 7.3% year-on-year as of February 21, down from 8.4% recorded in the same period last year.

Markets are expected to remain volatile as investors weigh domestic economic indicators and global trade developments.