On April 2, the Indian stock market experienced a remarkable turnaround after two days of losses, with both the Nifty and Sensex posting impressive gains. This surge was primarily fueled by a rebound in key sectors, particularly banking and information technology, just as the deadline for new tariffs announced by former US President Donald Trump loomed. The White House confirmed that these tariffs would be implemented immediately, adding a layer of urgency to market dynamics.
Market Performance Overview
The Sensex rose by 593 points, or 0.78%, closing at 76,617.44, while the Nifty 50 climbed by 166.65 points, or 0.72%, finishing at 23,332.35. The upward momentum was echoed throughout the broader market, with the Nifty Midcap 100 increasing by 1.6% and the Smallcap 100 up by 1.1%.
Economic Context Impacting the Market
As tariffs approach, concerns are growing regarding their potential impact on the US economy, particularly as consumer and business confidence appears to be waning. Recent inflation figures have exacerbated these worries, highlighting a more than anticipated rise in the Federal Reserve’s main inflation measure for February, coupled with a slower-than-expected increase in consumer spending.
Key Highlights from the Indian Stock Market:
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Sector Performance:
- All sectors concluded the day positively, with Nifty Realty leading the charge at 3.6% growth, followed by Nifty Consumer Durables at 2.5%.
- Nifty Bank and Nifty FMCG both saw a 1% increase, while sectors like Nifty Auto, Financial Services, IT, and Pharma each rose around 0.8%.
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Top Gainers in Nifty 50:
- Tata Consumer surged by 6.91%
- Zomato followed with a 4.9% increase
- Other notable gainers included Titan (+3.7%), IndusInd Bank (+2.8%), and Maruti Suzuki (+2%).
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Top Losers in Nifty 50:
- Bharat Electronics fell by 3.34%
- Other decliners included Nestle India (-1.3%), UltraTech Cement (-1%), PowerGrid (-0.9%), and Bajaj Finserv (-0.7%).
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Market Activity:
- A total of 434 stocks reached their upper circuit limits, while 153 stocks hit their lower circuits.
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Most Active Stocks:
- In terms of trading volume, Vodafone Idea led with 92.21 crore shares, followed by Zomato (5.94 crore) and Bharat Electronics (5.26 crore).
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52-Week Highs and Lows:
- 64 stocks, including Chambal Fertilisers and Maruti Securities, achieved new 52-week highs.
- Conversely, 85 stocks, such as Happiest Minds Technologies and Bajaj Electricals, recorded 52-week lows.
- Advance-Decline Ratio:
- On the BSE, 2,813 stocks advanced while 1,108 declined and **146 remained unchanged.
Expert Insights
Vinod Nair, Head of Research at Geojit Investments, commented on the market’s resilience amid global uncertainties. He noted that optimism stemmed from expectations that the tariffs would minimally affect the domestic economy, particularly due to positive developments in India-US trade discussions. Notably, India’s manufacturing PMI for March reached an eight-month high, indicating a potential recovery in corporate earnings for Q4 FY25.
Technical Analysis Perspective
Rupak De, Senior Technical Analyst at LKP Securities, provided insights into the market’s technical outlook. He observed that the index appears to be stabilizing around a critical support level. A bullish candlestick pattern has emerged, suggesting a possible price recovery in the short term, with 23,100 serving as a strong support threshold. Sustaining above this level could propel the index towards 23,800.
In summary, today’s market performance reflects a blend of resilience and cautious optimism as traders navigate upcoming economic challenges and tariff implications.
