RBI Cuts Repo Rate to 6%: EMIs Set to Decrease Amid Global Trade Tensions

RBI Slashes Repo Rate to 6% Amid Trade War Concerns, EMIs Set to Decrease

In a significant monetary policy decision, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points, bringing it down to 6%. This marks the second rate reduction this year, following the February cut that had lowered the rate to 6.25%. The latest decision, announced on April 9, 2025, comes amid growing concerns about global trade tensions and their potential impact on India's economic growth.

Impact on Borrowers and Loan Rates

This reduction in the repo rate—the interest rate at which the RBI lends money to commercial banks—is expected to translate into tangible benefits for consumers. Banks are likely to lower their lending rates in response, which would reduce the Equated Monthly Installments (EMIs) on various loans including home loans, auto loans, and personal loans.

For borrowers, this means:

• Lower interest payments on existing floating-rate loans
• Reduced EMIs or shortened loan tenures, depending on the borrower's preference
• More affordable new loans, potentially stimulating credit growth
• Possible refinancing opportunities for existing high-interest loans

Financial analysts suggest that for a standard 20-year home loan of ₹50 lakh, borrowers could see their EMIs reduce by approximately ₹800-1,000 per month, resulting in significant savings over the loan tenure.

Unanimous Decision and Economic Context

RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) voted unanimously to implement this rate cut. The decision comes against the backdrop of increasing global economic uncertainty, particularly following the recent imposition of reciprocal tariffs by the Trump administration on exports from India and numerous other countries.

"The dent on global growth due to trade frictions will impede domestic growth. Higher tariffs may have an impact on net exports. India is very proactively engaging with the US administration on trade," the RBI Governor explained during the policy announcement.

Economic Outlook and Growth Projections

In light of these global developments, the RBI has revised its growth forecast for the current fiscal year. The GDP growth estimate has been reduced by 20 basis points, with real GDP growth now projected at 6.5% for FY 2025-26.

Despite this downward revision, Governor Malhotra expressed confidence in several positive factors supporting India's economic resilience:

• Bright prospects for the agricultural sector
• Signs of revival in manufacturing activity
• Continued resilience in the services sector
• Increasing urban consumption with uptick in discretionary spending
• Healthy balance sheets of banks and corporations

The central bank also noted that current inflation is below the target range, with a sharp fall observed in food prices. This favorable inflation scenario has provided the RBI with the necessary policy space to cut rates and support growth.

Global Context and Trade Tensions

The rate cut comes at a time when the global economy faces significant headwinds from escalating trade tensions. The Trump administration's recent imposition of reciprocal tariffs—including a 26% tariff on imports from India—has created additional challenges for exporters and raised concerns about potential inflationary pressures from imported goods.

While acknowledging these challenges, the RBI Governor indicated that it remains difficult to precisely quantify the impact these global developments would have on domestic growth. However, he expressed confidence in the central bank's ability to manage domestic growth despite these external pressures.

Market Response and Future Outlook

Financial markets have responded positively to the rate cut, with banking stocks showing gains in anticipation of increased credit demand. Bond yields have also adjusted downward, reflecting the lower interest rate environment.

Economists are divided on whether this marks the beginning of a sustained rate-cutting cycle or represents a strategic adjustment to counter specific global risks. Some analysts predict that the RBI may adopt a wait-and-watch approach in subsequent policy meetings, closely monitoring global developments and domestic inflation trends before making further rate adjustments.

For investors and borrowers alike, the key takeaway is that financing costs are likely to decrease in the short term, potentially stimulating both consumption and investment activity in the economy.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Adani Ports Launches Operations at $800 Million Colombo West International Terminal

Adani Ports Launches Operations at Colombo West International Terminal in Strategic Expansion

In a significant development for maritime trade in South Asia, Adani Ports and Special Economic Zone Ltd (APSEZ) has officially commenced operations at the Colombo West International Terminal (CWIT) located at the Port of Colombo, Sri Lanka. This landmark achievement represents a major milestone in the company's international expansion strategy and strengthens India-Sri Lanka economic cooperation.

Strategic Partnership and Investment

The Colombo West International Terminal is being managed through a strategic public-private partnership comprising three key stakeholders:

• Adani Ports and Special Economic Zone Ltd (APSEZ) - India's largest port operator
• John Keells Holdings - Sri Lanka's premier conglomerate
• Sri Lanka Ports Authority - The government body overseeing ports in Sri Lanka

This collaboration is formalized under a 35-year agreement, signaling a long-term commitment to the development and operation of the terminal. The project represents an investment of $800 million, making it one of the largest foreign investments in Sri Lanka's infrastructure sector in recent years.

Advanced Infrastructure and Capabilities

The newly operational terminal features state-of-the-art infrastructure designed to handle large volumes of cargo efficiently. Key specifications include:

• A 1,400-meter quay length capable of accommodating multiple vessels simultaneously
• 20-meter depth allowing access for the largest container ships in operation
• Annual handling capacity of approximately 3.2 million containers
• Distinction as Colombo's first fully automated deep-water terminal

The automation technologies deployed at CWIT are expected to significantly enhance operational efficiency, reduce cargo handling times, and improve overall ship turnaround periods. These improvements will strengthen the Port of Colombo's position as a critical maritime hub in the South Asian region.

Development Timeline and Economic Impact

Construction of the Colombo West International Terminal began in early 2022, with the project progressing on schedule despite global supply chain challenges and economic headwinds. With advanced infrastructure now nearly complete, CWIT is poised to become a leader in efficient and reliable maritime operations across the region.

The economic implications of this project for Sri Lanka are substantial. According to Gautam Adani, Chairman of the Adani Group, "The CWIT project will create thousands of direct and indirect jobs locally and unlock immense economic value for the island nation."

Beyond employment generation, the terminal is expected to:

• Boost Sri Lanka's foreign exchange earnings through increased port revenue
• Enhance the country's logistics capabilities and trade competitiveness
• Attract additional investments in related sectors
• Strengthen Sri Lanka's position in global shipping networks

Strengthening Bilateral Relations

The successful implementation of this project also underscores the growing strategic ties between India and Sri Lanka. As Gautam Adani noted, the terminal "stands as a shining example of the deep-rooted friendship and growing strategic ties between the two neighbors, and of what can be achieved through visionary public-private partnerships."

For APSEZ, this expansion represents another milestone in its international growth strategy, following recent developments in Israel, Australia, and other markets. The company has demonstrated its capability to execute large-scale infrastructure projects globally, with the Chairman highlighting that "delivering this world-class facility in record time also reflects the Adani Group's proven ability to efficiently execute large-scale critical infrastructure projects anywhere in the world."

Future Outlook

With the commencement of operations at CWIT, investors and industry observers will be closely monitoring how this strategic asset contributes to APSEZ's financial performance and market position. The terminal's strategic location in Colombo—a key transshipment hub for South Asian trade—positions it well to capture growing cargo volumes as regional economies continue to expand.

For long-term investors in Adani Ports, this development represents the company's continued execution of its stated strategy to become a global ports operator while maintaining its dominant position in the Indian market.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Apple to shift iPhone Production to India as Trump's China Tariffs Intensify Trade War

Apple Accelerates iPhone Production Shift to India Amid Escalating US-China Trade War

As trade tensions between the United States and China reach new heights, Apple is reportedly accelerating its plans to source more iPhones from India. This strategic shift comes as a direct response to President Donald Trump's aggressive tariff policies targeting Chinese imports, which threaten to significantly impact the tech giant's supply chain and profit margins.

Apple's Strategic Response to Tariff Pressures

According to recent reports, Apple is ramping up shipments of India-manufactured iPhones to the United States as a short-term solution to navigate the increasingly complex trade landscape. This move is designed to help the company offset the rising costs imposed by the new China tariffs while Apple simultaneously pursues an exemption from President Trump's tariff policies.

The tech giant views the current trade situation as too volatile to completely restructure its long-term supply chain investments. Instead, it's opting for a more measured approach by gradually increasing production capacity in India while maintaining its established manufacturing base in China.

India's Growing Role in Apple's Manufacturing Strategy

Apple's relationship with Indian manufacturing isn't new. The company has been working with partners to assemble iPhones in India since 2017, beginning with older models before gradually expanding to include the latest devices in its lineup.

This dual-purpose strategy has served Apple well by:

• Reducing dependency on China-based manufacturing
• Avoiding import tariffs for devices sold within the Indian market
• Establishing a stronger foothold in one of the world's fastest-growing smartphone markets

Recent developments indicate that Apple is accelerating this strategy. A senior Indian official reported that Apple transported five full flights of iPhones and other products from India and China to the US in just a three-day period during the last week of March. These shipments were strategically timed to avoid the new duties, effectively stocking US warehouses with sufficient inventory to meet demand for the coming months.

Escalating Trade Tensions

The trade conflict between the US and China has intensified rapidly in recent days. On April 2, President Trump announced "discounted" reciprocal tariffs on several trading partners, including a 26% tariff on imports of Indian goods.

China responded swiftly with a retaliatory measure, announcing an additional 34% tariff on all US goods effective April 10. This prompted President Trump to escalate matters further, threatening to impose an additional 50% import tax on Chinese goods if China did not withdraw its retaliatory tariffs by April 8.

This tit-for-tat exchange has created significant uncertainty in global markets, with investors struggling to anticipate the next moves in this high-stakes economic confrontation.

Impact on Apple's Financial Performance

The iPhone accounts for approximately 50% of Apple's total revenue, and the device is primarily manufactured in China. This heavy reliance on Chinese manufacturing has raised serious concerns among investors about the company's exposure to the new tariffs.

These concerns have manifested in a dramatic 20% drop in Apple's share price, marking the worst three-day performance for the stock in almost 25 years. The market reaction underscores the significant challenges that Apple faces as it navigates the complex and rapidly evolving trade environment.

Future Outlook

As the trade war between the US and China continues to escalate, Apple's strategy of diversifying its manufacturing base appears increasingly prescient. The company's established presence in India provides it with a valuable alternative to Chinese production, potentially offering a competitive advantage over rivals that remain more heavily dependent on Chinese manufacturing.

However, completely shifting production away from China would be a massive undertaking that could take years to accomplish. China's manufacturing ecosystem offers unparalleled scale, expertise, and efficiency that would be difficult to replicate elsewhere in the short term.

For investors watching Apple's response to these trade pressures, the company's ability to maintain profit margins while navigating these geopolitical challenges will be a critical factor to monitor in the coming quarters.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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NIFTY Metal Index Plunges 7% After Last Week's Nosedive as Global Trade War Intensifies

NIFTY Metal Index Plunges 7% Following Last Week's Similar Decline as Trade War Intensifies

The global markets are experiencing significant turbulence as escalating trade tensions continue to batter metal stocks. The NIFTY Metal index has crashed another 7% today, April 7, 2025, following an equally severe 7.37% decline last week. This double-digit drop within a short period has raised concerns among investors about the sector's near-term prospects.

Current Market Scenario

In today's trading session, all 15 constituents of the NIFTY Metal index were trading in negative territory. The index was down 7.18% at 7,810.45 levels during opening deals. Among the major players, Tata Steel witnessed a dramatic fall of 10%, trading at ₹126.35, while Vedanta declined by nearly 7% to ₹374.30. Another significant loser was Lloyds Metals and Energy, which dropped 7.83% to 1,140.30 levels.

The severe correction in metal stocks comes amid heightened economic uncertainties triggered by the escalating global trade war initiated by US President Donald Trump's administration.

Trade War Escalation

The trade tensions have intensified as China responded on Friday with a 34% additional tariff on US imports, directly countering President Trump's similar levy on Chinese goods. Beijing has also announced export controls on certain rare earth metals, strategically targeting American defense, computer, and smartphone industries.

According to the Chinese Customs Tariff Commission of the State Council, these retaliatory tariffs on all US-imported products will come into effect from April 10, 2025.

Former World Bank Chief Economist Kaushik Basu has described the reciprocal tariffs imposed by the Trump administration on approximately 60 countries as "baffling." Basu noted that while these measures will have some adverse effects on India, the major negative impact will be felt within the US economy itself.

Domestic Growth Despite Global Headwinds

Despite the global trade tensions, Indian metal companies are reportedly preparing for significant expansions in the current fiscal year, focusing primarily on the growing domestic demand.

Industry analysts suggest that companies with strong domestic focus such as Vedanta, JSW Steel, Hindustan Zinc, and NALCO are positioning themselves to capitalize on:

• India's robust domestic demand growth
• The global race for critical minerals
• Strategic geographic diversification

Domestic steel demand is projected to grow at an impressive 10% annually over the next few years, with overall demand expected to increase at a CAGR of 7.2% until 2030.

Aluminum Industry Outlook

Industry experts are forecasting that India's aluminum demand will double every five years. This optimistic outlook is supported by the Indian government's substantial allocation of ₹11.21 lakh crore for infrastructure development in the 2025-26 budget.

An interesting potential upside is that as other countries face higher tariffs, manufacturing companies might look to diversify production into India, creating a positive spillover effect on domestic demand. This could potentially benefit companies like Vedanta and Hindustan Zinc that have a strong domestic focus.

FY26 Expansion Plans

Several major metal companies have announced ambitious expansion plans for the fiscal year:

Vedanta Limited

The aluminum-to-oil conglomerate is increasing its aluminum production capacity to 3 million tonnes and has acquired one of Odisha's largest high-grade bauxite mines to support this expansion. The company's BALCO smelter expansion is reportedly at an advanced stage, with commissioning targeted in FY'26.

Vedanta Aluminum aims to increase its share of value-added products from the current 60% to over 90%, positioning itself to capitalize on India's growing construction and electric vehicle markets. The company currently sells nearly half of its total aluminum production within India.

Hindustan Zinc Ltd (HZL)

Vedanta's subsidiary has recently established a 30,000-tonne-per-annum zinc alloy plant in Rajasthan to meet the growing domestic demand for value-added zinc alloys. Chairperson Priya Agarwal Hebbar has outlined an ambitious vision of doubling the company's metal production to 2 million tonnes per annum within the next five years.

Hindalco

The aluminum giant has indicated during its investors' day presentations that it expects several key projects to be commissioned this fiscal year, including copper and e-waste recycling initiatives and continuous copper cast rod projects.

Looking Ahead

While the immediate market reaction to global trade tensions has been severe, the long-term outlook for Indian metal companies appears to remain positive, backed by strong domestic demand fundamentals and strategic expansion plans. Investors may need to weather short-term volatility while keeping an eye on how the trade war dynamics evolve in the coming weeks.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Market Bloodbath: Sensex Crashes Over 3,200 Points, Nifty Below 21,900 - Key Reasons Behind the Free Fall

Market Bloodbath: Sensex Plunges Over 3,200 Points, Nifty Falls Below 21,900 — Top Reasons Behind the Free Fall

Indian equity markets witnessed a massive sell-off on Monday, April 7, 2025, with both benchmark indices crashing over 4% in a single trading session. The BSE Sensex plummeted more than 3,200 points while the Nifty50 slipped below the crucial 21,900 mark, marking one of the steepest single-day declines in recent memory.

As of 11:47 AM, the BSE Sensex was trading at 72,520.66, down 2,844 points or 3.77%. Similarly, the Nifty50 was at 21,984.85, down 920 points or 4.01%. The market rout has wiped out approximately Rs 19.4 lakh crore in investor wealth, bringing the total market capitalization of BSE-listed companies down to Rs 383.95 lakh crore.

Sector-Wise Impact

The sell-off was broad-based with all thirteen sectors ending in the red. Technology companies with substantial revenue exposure to the United States were among the hardest hit, declining by 7%. Key sectoral indices showed significant damage:

• Nifty Metal: Down 8%
• Nifty IT: Down over 7%
• Nifty Auto, Realty, and Oil & Gas: Each down over 5%

Small-cap and mid-cap indices bore the brunt of the selling pressure, registering declines of 10% and 7.3% respectively, indicating broader market weakness beyond the blue-chip stocks.

Top Losers

Among the BSE Sensex constituents, the biggest losers included:

• Tata Steel: Down 9.32%
• Tata Motors: Down 8.29%
• L&T: Down 6.23%
• HCL Tech: Down 5.72%
• Infosys: Down 4.8%

Top 5 Reasons Behind Today's Market Crash

1. US Nasdaq Entering Bear Territory

The Nasdaq index has officially entered bear market territory, falling over 20% from its recent peak. This decline followed extensive tariff announcements by U.S. President Donald Trump, which have raised serious concerns about global economic slowdown. Federal Reserve Chairman Jerome Powell noted that these tariffs exceeded anticipated levels and warned about their potential impacts on inflation and economic growth.

2. Global Market Selloff

Indian markets mirrored the broader international decline witnessed across Asian exchanges:

• Japan's Nikkei: Down 7%
• South Korea's Kospi: Down 5%
• Chinese blue-chip index: Down nearly 7%
• Hong Kong's Hang Seng: Down over 10.5%

US futures continued to show weakness with Nasdaq futures declining 4% and S&P 500 futures showing a 3.1% reduction. European futures markets also displayed significant negative momentum.

3. US Recession Fears

Market sentiment has shifted from inflation concerns to recession fears. While the upcoming U.S. consumer price index report is projected to show a 0.3% rise for March, experts warn that impending tariffs will lead to substantial cost increases across various industries.

As earnings season approaches, companies are likely to face pressure on profit margins due to higher operational expenses. Approximately 87% of U.S. firms will release their financial results between April 11 and May 9, with financial institutions leading the announcements.

4. Global Commodity Price Plunge

Commodities markets worldwide experienced substantial losses due to concerns about reduced demand and potential economic contraction:

• Brent crude: Down 6.5%
• WTI crude: Down 7.4%
• Gold: Down 2.4%
• Silver: Down 7.3%
• Copper: Down 6.5%
• Zinc: Down 2%
• Aluminum: Down 3.2%

5. Flight to Safe Havens

Investors are shifting toward safe investments as concerns about a global economic downturn intensify. Strong demand for government securities pushed the 10-year U.S. Treasury yield down by 8 basis points to 3.916%. Trading in Fed funds futures increased, indicating expectations of an additional 25-basis-point reduction in rates by the Federal Reserve within the year.

Although Fed Chair Powell indicated on Friday that the central bank remains patient regarding policy changes, market projections now suggest a 56% likelihood of a rate reduction by May.

6. Escalating Trade War

The global trade dispute has intensified with China implementing retaliatory tariffs on various U.S. products in response to comprehensive U.S. tariff increases earlier in the week. This ongoing exchange of trade restrictions has generated significant concerns regarding international trade and economic development.

Expert View

According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "Globally markets are going through heightened volatility caused by extreme uncertainty. No one has a clue about how this turbulence caused by Trump tariffs will evolve. Wait and watch would be the best strategy in this turbulent phase of the market."

He further noted, "India is relatively better placed since India's exports to the US as percentage of GDP is only around 2 percent and therefore the impact on India's growth will not be significant. India is negotiating a Bilateral Trade Agreement with the US and this is likely to be successful resulting in lower tariffs for India."

What's Next?

The week ahead features crucial domestic and global events that investors should monitor closely:

• MPC meeting conclusion on April 9
• IIP and CPI data scheduled for April 11
• Quarterly earnings season commencing with TCS results on April 10

Experts suggest that domestic consumption themes like financials, aviation, hotels, select autos, cement, defense, and digital platform companies are likely to emerge relatively unscathed from the ongoing crisis.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Week Ahead: RBI Policy, Trump Tariffs, Q4 Results Among Key Triggers for Indian Stock Market

The Indian stock market started the new fiscal year FY26 on a weak note, with benchmark indices ending sharply lower last week and snapping a two-week winning streak. Global trade tensions triggered by US President Donald Trump's unexpected tariff hikes have spooked investors across domestic and global markets alike.

As we enter the second week of April, several critical market triggers will determine the direction of Indian equities. Let's examine the key factors that investors should monitor closely.

Last Week's Market Performance

The domestic equity benchmarks fell significantly, dragged primarily by weak global cues and renewed concerns over a potential trade war. During the week, the BSE Sensex tanked 2,050.23 points (2.64%) while the NSE Nifty declined 614.8 points (2.61%). The Nifty 50 ended the week at 22,904.40, while the Sensex settled at 75,364.69, near the week's low.

On Friday alone, the 30-share BSE index slumped over 900 points, crashing below the 76,000 level due to an across-the-board sell-off. A steep decline in the US stock markets further dampened hopes of recovery in domestic equities.

Key Market Triggers for the Coming Week

RBI Monetary Policy Committee Meeting

The Reserve Bank of India's rate-setting panel will begin deliberations this week on its first policy verdict for FY26. The outcome of the MPC meeting and interest rate decision on April 9 will be a major market trigger.

Market experts anticipate that this policy meeting will provide crucial insights into the central bank's stance and India's economic outlook. Many analysts foresee another 25 basis points interest rate cut, which could potentially benefit rate-sensitive sectors if the outcome is favorable.

Q4 Earnings Season Kickoff

The March quarter earnings season begins this week, with IT giant Tata Consultancy Services (TCS) scheduled to announce its results on Thursday, April 10. The software services leader may also declare a final dividend for FY25 on the same day.

According to market analysts, the initial outlook remains subdued, with risks of further downward revisions to earnings growth, largely due to tepid demand and continued margin pressures. The IT sector specifically is expected to report soft numbers, and investor sentiment will depend heavily on management commentary about future prospects.

Persistent global growth concerns and potential elevated inflation in the US may lead companies to delay discretionary IT spending, potentially dampening the sector's near-term outlook.

Trump Tariffs and Global Trade Tensions

The market sell-off was initially triggered by the US President's decision to impose steep reciprocal tariffs on key trading partners, including a 27% levy on select Indian goods. This move has reignited fears of a global trade war, prompting broad-based risk aversion across emerging markets.

Market sentiment further weakened amid rising US Treasury yields and lingering inflationary concerns, which dampened hopes of an early rate cut by the US Federal Reserve. Volatility has remained elevated, with the India VIX index rising significantly, reflecting heightened caution ahead of quarterly earnings and ongoing election-related developments.

Investors will closely monitor any countermeasures implemented by global trade partners, which could further exacerbate geopolitical and economic uncertainty. The cautious sentiment is reflected in the sustained rally in gold and bond prices, underscoring a pronounced shift toward safe-haven assets.

Macroeconomic Data Releases

Key macroeconomic indicators - the Index of Industrial Production (IIP) and Consumer Price Index (CPI)-based inflation for March 2025 - are scheduled for release on Friday, April 11. However, as per the Statistics Ministry's timeline, the CPI inflation data might be released on April 15, since April 14 is marked as a holiday to observe Ambedkar Jayanti.

These data points will provide crucial insights into India's economic performance and could significantly influence market sentiment.

Foreign Institutional Investor Activity

Foreign institutional investors (FIIs) turned aggressive sellers last week, pulling out approximately ₹13,730 crore from the cash segment, while domestic institutional investors (DIIs) provided some support with net inflows of around ₹5,632 crore.

The trend of FPIs turning buyers in March changed in early April when they turned sellers again following President Trump's announcement of reciprocal tariffs. The steeper-than-expected tariffs have raised concerns that the US economy might slip into stagflation, triggering massive selling in US markets where the S&P 500 and Nasdaq lost above 10% in just two days.

The total FPI selling in India up to April 5 stood at ₹10,354 crore. However, the steep decline in the dollar index to 102 is considered favorable for capital flows to emerging economies like India, although FPIs are likely to remain in a wait-and-watch mode before turning buyers again.

Global Economic Indicators

Several important global economic indicators will be released this week:

• The minutes of the US Federal Open Market Committee (FOMC) meeting will be released on Wednesday, April 9
• China's March CPI inflation data is scheduled for release on Thursday, April 10
• The US inflation and core CPI data will be released on Thursday, April 10
• The February UK GDP data is scheduled for release on Friday, April 11

Technical Outlook

From a technical perspective, Nifty 50's immediate support lies at 22,600, while a decisive breach could open the door towards 22,100. On the upside, any recovery is likely to face stiff resistance in the 23,100–23,400 zone.

Primary Market Update

The primary market will not witness any action this week, with no new initial public offerings (IPO) or listings slated across the mainboard and small and medium enterprises (SME) segments.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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FPIs Pull Out Rs 10,355 Crore From Indian Equity Markets As US Tariffs Trigger Global Sell-Off

Foreign Portfolio Investors (FPIs) have withdrawn Rs 10,355 crore from Indian equity markets in just four trading sessions this month, reversing their previous buying trend as concerns mount over aggressive tariffs imposed by the United States. This sudden reversal underscores the vulnerability of emerging markets to global policy shifts and trade tensions.

Recent FPI Activity: A Sharp Reversal

The recent outflow marks a significant shift in investor sentiment, coming immediately after FPIs had injected Rs 30,927 crore into Indian equities during the six trading sessions from March 21 to March 28. That brief period of strong inflows had helped reduce the overall outflow for March to Rs 3,973 crore, providing temporary relief to the markets.

This latest withdrawal extends what has been a challenging year for foreign investment in Indian equities. In February, FPIs pulled out Rs 34,574 crore, while January saw an even larger exodus of Rs 78,027 crore. With the April outflows, the total FPI withdrawal has now reached a staggering Rs 1.27 lakh crore in 2025 so far.

US Tariffs: The Primary Catalyst

Market analysts attribute the sudden reversal in FPI flows primarily to the sweeping tariffs recently announced by the United States. The tariffs, which were more severe than market participants had anticipated, have raised serious concerns about potential global economic repercussions.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, explained: "The tariffs, which were much steeper than anticipated, raised concerns about their broader economic impact." The measures include:

• A 10% baseline tariff on all imports to the United States
• A 25% tariff specifically on automobile imports
• Steep reciprocal tariffs on most countries, including a 26% tariff on India

These aggressive tariff measures have triggered fears of rising inflation in the US economy, along with growing concerns that these policies might push the world's largest economy toward stagflation—a dangerous combination of slow economic growth, high unemployment, and persistent inflation.

Global Market Reaction

The uncertainty surrounding these tariffs has already sparked significant selling pressure in US markets, with the S&P 500 and Nasdaq losing over 10% in just two days following the announcement. This dramatic market response reflects investor anxiety about the potential for a full-blown trade war that could disrupt global trade flows and hamper economic growth worldwide.

However, one potential silver lining has emerged from this situation. The steep decline in the dollar index to 102 is being viewed as a potentially favorable development for capital flows into emerging economies like India over the longer term, as a weaker dollar typically makes emerging market assets more attractive to foreign investors.

Beyond Equities: Debt Market Impact

The impact of these global developments has extended beyond equity markets. FPIs have also withdrawn Rs 556 crore from the debt general limit and pulled out Rs 4,038 crore from the debt voluntary retention route during the same period. This suggests a broader retreat from Indian financial markets as global investors reassess risk amid heightened uncertainty.

Looking Ahead: Key Factors to Watch

According to Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services at BDO India, market participants will be closely monitoring several key factors in the coming weeks:

• The long-term impact of the proposed US tariffs on global trade
• Upcoming announcements from the Reserve Bank of India regarding its monetary policy stance
• Expectations of a potential rate cut by the RBI

These developments will play a crucial role in shaping investment strategies for the upcoming cycle and determining when—or if—foreign investors might return to Indian markets in force.

Market Implications

For Indian retail investors, these FPI outflows could create both challenges and opportunities. While sustained foreign selling can pressure market valuations in the short term, it may also create attractive entry points for long-term domestic investors looking to build positions in fundamentally strong companies at reasonable valuations.

The situation remains fluid, with market sentiment likely to remain sensitive to global trade developments, central bank policy decisions, and macroeconomic data in the coming weeks. Investors would be wise to maintain a diversified approach and focus on quality companies with strong fundamentals that can weather these periods of market volatility.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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