As per provisional closing, the barometer index, the S&P BSE Sensex, surged 1,577.63 points or 2.10% to 76,734.89. The Nifty 50 index rallied 500 points or 2.19% to 23,328.55.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 3.02% and the S&P BSE Small-Cap index surged 3.21%.

The market breadth was strong. On the BSE, 3,304 shares rose and 785 shares fell. A total of 167 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 19.80% to 16.13.

Economy:

India’s wholesale inflation, based on the Wholesale Price Index, eased to 2.05% in March as compared with 2.38% in February. It had stood at 0.26% in March 2024. “The positive rate of inflation in March 2025 is primarily due to the increase in prices of the manufacture of food products, other manufacturing, food articles, electricity, the manufacture of textiles, etc.," the industry ministry said in a statement.

India recorded a trade deficit of $21.54 billion in March of 2025, widening from the $15.6 billion gap in the corresponding period of the previous year. Imports surged by 11.4% annually to $63.51 billion in March 2025 as compared with $57.03 billion in March 2024. While exports rose by a much softer 0.7% to $41.97 billion in March 2025 as compared with $41.69 billion in March 2024.

India's Consumer Price Index (CPI) inflation cooled to 3.34% in March, falling from 3.61% in February. This marks the lowest inflation rate since August 2019, with the decline largely driven by a significant easing in food prices.

Core CPI inflation for March stood at 4.1%, slightly higher than the 4% recorded in February, indicating a stable yet persistent inflationary trend in core consumer prices.

Food inflation fell to 2.69% in March from 3.75% a month earlier, with the decline sharper than expected. Vegetables saw a steep deflation of 7.04%, compared to just 1.07% in February. Pulses also reported deflation at 2.73%, a stark drop from the previous month’s 0.35%.

Fuel and light inflation swung back into the positive zone at 1.48% after seeing a contraction of 1.33% in February. Housing inflation picked up slightly to 3.03%, while clothing and footwear remained largely stable at 2.62%.

Rural inflation stood at 3.25%, down from 3.79% in February, showing broad easing in price pressures outside urban centres. Urban inflation, however, inched up to 3.43% from 3.32%.

The sharp moderation in food inflation is likely to offer some relief to the Reserve Bank of India, which has kept policy rates unchanged to balance growth and inflation concerns. The reading remains comfortably below the central bank’s 4% target.

Buzzing Index:

The Nifty Realty gained 5.64% to 834.75. The index rallied 5.7% in the past two consecutive trading sessions.

Anant Raj (up 8.67%), Macrotech Developers (up 8.21%), Prestige Estates Projects (up 6.82%), DLF (up 6.31%), Phoenix Mills (up 5.14%), Oberoi Realty (up 5.1%), Sobha (up 5.04%), Brigade Enterprises (up 4.22%), Godrej Properties (up 3.42%) and Raymond (up 1.66%) advanced.

Stocks in Spotlight:

Vedanta surged 4.47% after Assam's Chief Minister Himanta Biswa Sarma met with the company to strategize the implementation of their Rs 50,000 crore investment plan in the state.

G M Breweries rose 1.83%. The company reported a 30.22% drop in net profit to Rs 60.46 crore in Q4 FY25 as against Rs 86.64 crore posted in Q4 FY24. However, revenue from operations (excluding excise duty) grew by 5.93% year on year to Rs 169.33 crore in the quarter ended 31 March 2025.

Macrotech Developers surged 8.35% after the Lodha brothers have amicably resolved all outstanding disputes under the guidance of their parents.

Poonawalla Fincorp added 4.64% after the company has launched gold loan business, aiming to expand its portfolio of secured lending products. As part of this initiative, the company seeks to strengthen its presence across Tier 2 and Tier 3 cities with a secured product. It plans to open 400 new branches in a phased approach over the next four quarters.

Aurobindo Pharma jumped 5.12% after the pharma company said that it has received final approval from US Food and Drug Administration (USFDA) to manufacture and market Rivaroxaban Tablets USP, 2.5 mg.

Biocon rose 4.04% after the company's subsidiary, Biocon Biologics, signed a settlement and license agreement with Regeneron, paving the way to commercialize Yesafili, a biosimilar to EYLEA, in the U.S. by the second half of 2026.

Jubilant Agri and Consumer Products (JACPL) surged 16.60% after the company has incorporated a wholly owned subsidiary, (WOS) Jubilant Agri Solutions (JASL), on 7 April 2025.

ICICI Bank added 3.06% after the bank said that its board is scheduled to meet on 19 April 2025, to consider raising funds on a private placement basis.

Quality Power Electrical Equipments jumped 10.76% after the company said that it has secured a significant order for the supply of reactors for power transmission, specifically for Flexible AC Transmission Systems (FACTS) applications. The value of the aforementioned contract is Rs 19.7 crore. The reactors have to be delivered within a period of 15-18 months.

Capacite Infraprojects added 2.66% after the company received a letter of intent from TenX Realty, a wholly owned subsidiary of Raymond, for civil and core construction works at its Bandra project. The total value of the contract is Rs 220 crore.

Advait Energy Transitions advanced 6.09% after the company announced that it has been confirmed as the L1 (lowest bidder) successful bidder for a power supply project in Gujarat.

Mercury Ev-Tech gained 9.98% after the company announced that its subsidiary PowerMetz Energy has commissioned a 3.2 GW lithium-ion battery manufacturing facility at its Vadodara campus.

Global Markets:

European markets opened higher on Tuesday amid tentative optimism that there will be some respite from U.S. President Donald Trump’s tariff regime.

The U.K. employment rate ticked 0.2% points higher on the quarter to 75.1% between December 2024 and February 2025, the Office for National Statistics said in a labor market report published Tuesday. In an initial estimate, the number of payrolled employees fell 0.3% month on month and 0.2% annually in March.

Average annual wage growth excluding bonuses came in at 5.9% in December to February, up from a rate of 5.8% in November to January. Wage growth, including bonuses, was 5.6%.

Asian shares ended higher after U.S. President Donald Trump announced a temporary exemption for smartphones and other electronics from the list of Chinese imports facing steep tariffs. However, investor sentiment remained cautious, as the ongoing trade negotiations between Washington and Beijing continue to generate economic uncertainty.

On Monday, Trump suggested the possibility of extending tariff exemptions to automobiles as well. Nevertheless, the frequent shifts in the administration's trade stance have created uncertainty around U.S. economic policy, which has dampened investor risk appetite.

U.S. equities recorded two consecutive sessions of gains, supported by the partial tariff relief and renewed bargain buying following weeks of losses. The S&P 500 rose 0.8%, the NASDAQ Composite added 0.6%, and the Dow Jones Industrial Average also advanced 0.8%.

Despite the short-term relief, recent comments from the President indicated that the exemptions for electronics may be temporary. Trump hinted at the potential introduction of separate tariffs targeting the electronics sector, contributing to increased uncertainty about the U.S. economic outlook. The dollar declined to a three-year low amid the lack of policy clarity, and U.S. Treasury yields climbed as investors reduced exposure to government bonds.

Markets also remained wary of the broader implications of the escalating trade conflict. Last week, the U.S. imposed cumulative tariffs of 145% on Chinese imports, prompting retaliatory measures from Beijing, which introduced tariffs amounting to 125% on U.S. goods.

In addition to trade developments, U.S. markets found some support from stronger-than-expected first-quarter earnings from major banks. These results suggested a degree of resilience in corporate performance despite growing macroeconomic headwinds.