The BSE Sensex rose about 1.4% to close at 77,984 on Monday, its highest since early February and advancing for the 6th straight session, supported by foreign fund inflows and global positive cues. Market sentiment improved after U.S. President Donald Trump said there will be "flexibility" on his reciprocal tariff plan and that he would discuss tariffs with Chinese President Xi Jinping. On the domestic economic front, a fresh PMI survey showed India’s private sector showed signs of softening in March, with overall business activity expanding at a slower pace than in February. Heavyweight financials led the rally, with Kotak Mahindra Bank surging 4.5% after the appointment of Bhavnish Lathia as new chief technology officer. Bajaj Finance rose by 2.8% while Axis Bank rose 2.5%. NTPC saw a significant rise of 4.6%, while Tech Mahindra (TECHM) and Power Grid Corporation also performed well, gaining 3.5% and 3.1%, respectively.
Stock futures in the US were higher on Monday, with contracts on the three major averages rising nearly 1%, as traders hope the new US tariffs set to take effect on April 2nd could be softer and more targeted than initially anticipated. Reports emerged that President Donald Trump’s coming wave of tariffs is poised to be more targeted than the barrage he has occasionally threatened. The tech sector rallied in premarket trading. Shares of Tesla soared more than 3.5% and Nvidia was up 1.9%. Other megacaps were also higher before the opening bell, including Apple (0.9%), Microsoft (1%), Amazon (1.7%), Meta (2.8%) and Alphabet (1.6%). Traders will also await flash S&P Global PMIs due today for further updates on the performance of the private sector this month.
Frankfurt's DAX rose about 1% to trade around 23,100 on Monday, following Friday's losses, as traders awaited more clarity on US tariffs and monitored business activity data from major European economies. It has been reported that President Donald Trump's forthcoming tariffs will be more specific, in contrast to the wide-ranging ones he has previously threatened. On the domestic data front, Germany's private sector saw the fastest rise in business activity in ten months in March, fueled by the first increase in manufacturing production in almost two years. Among individual stocks, RWE AG gained over 2% after activist investor Elliot disclosed a stake of nearly 5% in the utility. Deutsche Bank (+2.8%) and Rheinmetall (+1.8%) were also among the top advancers. On the flip side, Bayer faced heavy selling pressure, dropping over 7%, after a Georgia jury ordered the company to pay nearly $2.1 billion in damages to a man who claimed that Monsanto's Roundup weed killer caused his cancer.
The Shanghai Composite edged up 0.15% to close at 3,370, while the Shenzhen Component added 0.07% to 10,695 on Monday, as mainland stocks reversed early losses and snapped a three-day losing streak amid improving risk sentiment. Investors remained cautious ahead of the April 2 deadline for US President Donald Trump’s reciprocal tariffs, though Trump's recent comments suggesting potential flexibility and reports of less aggressive measures provided some relief. Meanwhile, Chinese Premier Li Qiang reiterated the need for greater market openness to counter global instability at the China Development Forum in Beijing on Sunday, where US Senator Steve Daines and Apple CEO Tim Cook were in attendance. Among the session’s top performers were Wolong Electric (10%), Victory Giant (5.8%), Beijing Highlander (6.1%), Zijin Mining (2.7%), and Eoptolink Technology (4.6%).
