Markets Steady: Nifty and Sensex Gain Ground Despite Ongoing Tariff Concerns; Auto and Pharma Stocks Face Pressure as Gensol Drops 5%

As the trading day begins, Indian markets are experiencing a steady but cautious start amid mixed signals from global counterparts. The Nifty 50 is currently around 23,300, while the Sensex has found a footing in the positive territory, hovering near 76,800 after momentarily crossing the 77,000 mark. Notably, Maruti Suzuki, Sun Pharma, and Bajaj Auto are dragging on the indices, whereas Apollo Hospitals, HDFC Bank, HDFC Life, Power Grid, and ITC are providing some upward momentum.

Broader Market Performance

In a surprising twist, the small and mid-cap stocks are outpacing their larger counterparts, achieving gains of nearly 1%. This indicates a favorable sentiment among investors looking for opportunities beyond the blue-chip stocks.

Noteworthy Stock Movements

Several stocks are making headlines today:

Gensol Engineering has fallen to its lower circuit limit, down 5%.
IndusInd Bank has shown resilience with an increase of over 1%.
OREDA has surged by 6% after reporting a remarkable 49% year-over-year profit increase for Q4.
Swiggy has also gained over 1% following its collaboration with the Ministry of Labour & Employment to enhance job creation in the gig economy.

Market Insights and Key Levels

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, emphasizes the strength of domestic consumption stocks, noting that companies like Bajaj Finance, Bharti Airtel, Indigo Airlines, and Eicher Motors have reached 52-week highs. He pointed out that HDFC Bank, ICICI Bank, and Kotak Bank remain robust, while the technology sector seems to be lagging. According to Vijayakumar, this trend suggests that stocks linked to domestic consumption are likely to be safer investments in the current volatile global climate.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, echoes this sentiment, stating that the market is showing signs of an uptrend. He recommends buying the Nifty within the range of 23,100-23,200, with a stop-loss set below 23,000 on a closing basis, as the market could experience profit-taking at higher levels.

Volatility and Global Market Overview

The Volatility Index (VIX) has decreased by 2%, indicating a drop in investor anxiety. The VIX typically serves as a fear gauge, having spiked nearly 60% earlier in April due to tariff-related global market fears.

Asian Markets Experience Decline

Asian markets are largely in negative territory as investors weigh the implications of tariffs on economic stability. Despite this, China has announced a first-quarter GDP growth of 5.4%, surpassing expectations and suggesting continued economic momentum amid tariff concerns.

U.S. Futures and International Developments

In the U.S., futures for the Nasdaq and S&P 500 have dipped about 1% each, following Nvidia’s announcement of a $5.5 billion quarterly charge related to exports of its H20 graphics processing units to China.

Foreign Institutional Investors (FIIs) Trends

Interestingly, foreign institutional investors (FIIs) made a notable purchase of Rs 6,065 crore in Indian equities on April 15. However, they remain net sellers for the month, with outflows totaling Rs 28,576 crore. The most significant sell-off occurred on April 7, coinciding with a global market downturn triggered by tariff concerns, where FIIs offloaded over Rs 9,000 crore in a single session.

In summary, while Indian markets are navigating a complex global landscape, the resilience of domestic consumption stocks offers a glimmer of hope for investors amid ongoing volatility.