Indian equities saw a sharp rebound this week, led by strong performances in the midcap and smallcap segments. Experts predict further outperformance in these areas, noting technical strengths and broad-based buying interest across sectors like defence, railway, oil marketing, and power.

The rupee appreciated 12 paise to 85.86 against the US dollar supported by strong domestic inflows, despite risks from crude oil prices and liquidity constraints. Foreign institutional investors purchased equities worth Rs 7,470.36 crore, while state-run enterprises and NBFCs raised significant funds through debt sales and bonds.

Many of them are now sitting on cash and markets have rallied. So, fundamentally also if you see, the triple move which we have seen is very rare. Stock markets moving up, bonds moving up, i.e., bonds yield moving down and the rupee moving up, all three happening together, that by itself is a good macroeconomic indicator.

​Havells would be more diversified with some positives coming from the rest of the durables growth. AC growth is expected to be strong and on wires and cables, obviously, they will also get impacted.

Rajeev Agrawal of DoorDarshi India Fund emphasizes the need for company-level tariff adjustments due to varying export percentages, especially in sectors like pharma which may be significantly impacted by US tariffs. He highlights a shift in investment focus towards domestic companies and undervalued lending firms, while maintaining overall sector allocations.

Gold and silver futures contracts opened flat on Monday amidst heavy profit booking. Gold prices have fallen by Rs 2,000 per 10 grams from their all-time high, while silver has tumbled by Rs 3,400 per kilogram over recent sessions. Market volatility persists due to fluctuations in the dollar index and U.S. trade tariffs.

India has been labelled as one of the highest tariff nations by the U.S. President, and there is speculation that the U.S. will announce reciprocal tariffs on Indian goods as early as April 2nd.

While Nifty took 10 trading sessions to swing from the lower Bollinger band to the middle band, it took just 3 sessions to travel the upper half. This suggests that the uptrend is gaining momentum, encouraging us to believe that, despite the pace of upsides, there is more to come.

Gustavo Medeiros, Global Head of Research at Ashmore Investment Management, highlights India s inclusion of women in the labor market and manufacturing absorption as key structural trends. Despite a recent correction, Ashmore is adding exposure to undervalued Indian companies. The company had been underweight on India but sees potential in current valuations, focusing on opportunities amid a global portfolio rebalancing.