At 11:25 IST, the barometer index, the S&P BSE Sensex, added 884.85 points or 1.15% to 77,811.95. The Nifty 50 index advanced 263.95 points or 1.13% to 23,614.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 1.26% and the S&P BSE Small-Cap index added 1.34%.

The market breadth was strong. On the BSE, 2,773 shares rose and 1,130 shares fell. A total of 203 shares were unchanged.

Economy:

India's private sector economy ended the 2024/25 fiscal year on strong footing, sustaining robust expansions in new business intakes and output, according to preliminary HSBC flash PMI data. Rates of growth softened from February, though remained well above their respective long-run averages. Outstanding business volumes continued to rise, supporting another round of job creation, while price trends were mixed.

The HSBC Flash India Composite Output Index was down marginally from February's final reading of 58.8 to 58.6 in March. The latest figure was above its long-run average of 54.7 and indicated a sharp rate of expansion.

The HSBC Flash India Manufacturing PMI increased from 56.3 in February to 57.6 in March, signalling a notable improvement in operating conditions that was broadly aligned with the average for the 2024/25 fiscal year.

Pranjul Bhandari, Chief India Economist at HSBC, said: "India’s manufacturing sector expanded at a faster pace in March, according to the flash PMI. The output index rose to its highest level since July 2024. Yet the margin squeeze on manufacturers intensified as input price inflation ticked up while factory gate prices rose at the weakest rate in a year. The moderation in new export orders growth was also noteworthy amid tariff announcements."

Buzzing Index:

The Nifty Private Bank index jumped 2.44% to 25,847.15. The index surged 7.9% in the six consecutive trading sessions.

Kotak Mahindra Bank (up 4.02%), RBL Bank (up 3.82%), Axis Bank (up 3.22%), Federal Bank (up 3.02%) and IDFC First Bank (up 2.31%) were the top gainers. Among the other gainers were ICICI Bank (up 2.1%), HDFC Bank (up 1.66%), Bandhan Bank (up 1.3%), City Union Bank (up 0.07%) advanced.

Stocks in Spotlight:

Godrej Properties (GPL) rose 2.02% after the company has announced the acquisition of approximately 10 acres of land in Yelahanka, Bengaluru, for a new development project with an estimated revenue potential of Rs 2,500 crore.

SMS Pharmaceuticals rose 2.94% after company announced that it has successfully completed a US Food and Drug Administration (USFDA) inspection at its API manufacturing facility located in Bachupally, Hyderabad, Telangana. The inspection was conducted from 17 March to 21 March 2025 and concluded with one observation in Form 483.

Global Markets:

US Dow Jones index futures rose 229 points, signaling a strong opening for US stocks today. Media reports suggest that President Donald Trump’s April 2 tariffs will be narrower and less stringent than initially feared, easing concerns about their economic impact.

Most Asian stocks declined on Monday as investors braced for Trump’s looming April 2 tariff deadline.

In Japan, business activity shrank for the first time in five months. The au Jibun Bank Manufacturing PMI fell to 48.3 in March, down from 49.0 in February, marking its ninth consecutive month of contraction. Meanwhile, the Services PMI dropped to 49.5 from 53.7, the first decline since mid-2024. A PMI reading below 50 indicates contraction.

Meanwhile, Chinese Premier Li Qiang warned of “rising instability” and urged nations to open up their markets.

On Friday, US market closed higher as Trump hinted at "flexibility" on tariffs, although he reaffirmed the April 2 deadline for reciprocal duties.

The S&P 500 rose 0.08% to 5,667.56 points, while the NASDAQ Composite rose 0.52% to 17,784.05 points. The Dow Jones Industrial Average rose 0.08% to 41,985.35 points.

Nike stock slipped over 5% after fiscal fourth-quarter revenue estimate came in below analysts’ expectations.

While stocks have rebounded from oversold levels, investors remain cautious. Until there is clarity on the tariff situation—expected by April 2—the market’s upside potential will likely remain limited.