Q4 IT Fallout, Trade Deficit Widens, Tariff War, Gensol Engineering Fund Diversions— The Week That Was

The past week has been eventful for global and Indian markets, as the Indian indices posted the best week in four years, India's trade deficit expanded and retail inflation slipped to the lowest since August 2019, and the US-China tariff war and the European Central Bank lowered interest rates for the seventh time since last June.

The week also saw the beginning of the earnings season, with big IT companies posting their fourth quarter results, gold prices hitting an all-time high, and the Securities and Exchange Board of India barring Gensol Engineering promoters. These events have shaped the financial landscape, influencing investor sentiment and market dynamics.

The benchmark equity indices recorded their best week in four years as they closed higher for the third consecutive session on Thursday. The indices surged over 4.3% in a curtailed week lathered with long weekend holidays.

Indian benchmark equity indices erased all the losses triggered by US President Donald Trump’s reciprocal tariffs earlier this month.

The Securities and Exchange Board of India on Tuesday barred Gensol Engineering, its Chief Executive Officer Anmol Singh Jaggi and Promoter-Director Puneet Singh Jaggi from securities markets over a fund diversion charge.

President Donald Trump said he was reluctant to continue ratcheting up tariffs on China because it could stall trade between the two countries and insisted Beijing had repeatedly reached out in a bid to broker a deal.

The US and China have escalated import duties in an economic clash between the two superpowers, part of a broader wave of sweeping tariffs Trump has sought to impose on major trading partners. He has hiked new levies to a combined 145% on Chinese goods, while Beijing has retaliated with duties of 125% on the US.

Apart from the tariff war with China, US President Donald Trump has said negotiators made “big progress” in trade talks with Japanese representatives seeking exemptions from the levies slapped on US trading partners.

Gold futures continued their climb for the second straight day, hitting a new all-time high of Rs 95,935 per 10 grams on the MCX, climbing by Rs 274 on Thursday, driven by firm spot demand.

Earlier on Wednesday, the price of 24-karat gold in the retail market soared by Rs 1,650 to hit an all-time high of Rs 98,100 per 10 grams in New Delhi. The prices were driven higher by the global rush for safe-haven buying that was triggered by an escalating trade war between the US and China.

The European Central Bank lowered interest rates for the seventh time since last June as global trade tensions threaten to derail the region’s economic recovery.

The deposit rate was decreased by a quarter-point to 2.25%, as predicted by almost all analysts polled by Bloomberg. Officials dropped the word “restrictive” from their statement in relation to the monetary-policy stance but stressed the headwinds Europe faces.

The Indian IT sector saw a muted outlook from major players Infosys and Wipro as uncertainties weighed on growth prospects.

Infosys guided for a modest 0-3% revenue growth for FY26, citing a soft start to the year due to ongoing tariff wars. In the March quarter, the company reported a 3% sequential rise in net profit to Rs 7,033 crore, surpassing Bloomberg's estimate of Rs 6,697 crore. However, revenue declined 2% quarter-on-quarter to Rs 40,925 crore, falling short of the Rs 42,126-crore analyst estimate.

Wipro, too, flagged a weak outlook for the June quarter, forecasting a revenue degrowth of -3.5% to -1.5%. For the March quarter, its consolidated revenue rose 0.8% sequentially to Rs 22,504.2 crore. Net profit grew 6.6% to Rs 3,588 crore, beating the Rs 3,364-crore consensus estimate.

India’s trade deficit expanded to $21.54 billion in March, from $14.05 billion in February, according to data from the Ministry of Commerce and Industry. Merchandise exports were almost flat on a year-on-year basis, growing by 0.7% to $41.97 billion in March, while merchandise imports grew by 11.3% to $63.51 billion.

Meanwhile, India's retail inflation slipped to the lowest since August 2019, led by lower vegetable prices. The consumer price index-based inflation moderated to 3.34% in March from 3.61% in February, according to data from the Ministry of Statistics and Program Implementation.

According to the data, India's wholesale price inflation was at 2.05% in March and 2.38% in February. While wholesale inflation in primary articles declined, led by easing food article inflation, the month continued to witness an increase in prices of manufactured products.