The Indian stock market experienced a considerable rebound on Tuesday, April 8, following a global trend of relief rallies. After enduring significant losses recently, investors were greeted with a wave of optimism, despite lingering concerns regarding the ongoing trade tensions with the United States. This positive shift in sentiment has been fueled by negotiations between various nations and the U.S. administration, aimed at averting a full-scale trade war.

Market Performance Overview

The Sensex broke its three-day losing streak, surging by 1,089 points, or 1.49%, to close at 74,227. Meanwhile, the Nifty 50 index also thrived, finishing 374 points or 1.69% higher at 22,536. The broader markets outperformed, with the BSE Midcap rising 1.87% and the Smallcap index climbing 2.18%.

• Market Capitalization Surge: The overall market capitalization of companies listed on the BSE soared by approximately ₹8 lakh crore, escalating from ₹389 lakh crore to nearly ₹397 lakh crore.

Key Drivers Behind the Rally

Global Influences

The Indian stock market’s upswing can be attributed to encouraging global cues. Investors are buoyed by the prospect of a trade deal, as nations, including Japan and the European Union, engage in dialogue to mitigate the potential fallout from U.S. tariffs imposed on April 2.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, noted, “The recovery in local benchmarks was significantly aided by positive global market cues, easing concerns regarding U.S. trade tariffs. India’s consumption-driven economy is likely to be less adversely affected compared to other nations.”

Anticipation of Monetary Policy Changes

Market participants are also closely monitoring the upcoming monetary policy announcement from the Reserve Bank of India (RBI), expected to cut interest rates by 25 basis points.

Notable Gainers on Nifty 50

The Nifty 50 index saw a majority of its stocks in the green, with 49 out of 50 members closing positively.

• Top Performers:
  • Jio Financial Services: +5.61%
  • Shriram Finance: +5.21%
  • Bharat Electronics: +3.69%

The only stock in the red was Power Grid Corporation of India, which dipped slightly by 0.09%.

Sector Performance Highlights

Every sectoral index recorded gains:

• Nifty Media: +4.72%
• PSU Bank: +2.64%
• Consumer Durables: +2.59%
• Realty: +2.47%
• Oil & Gas: +2.20%

The Nifty Bank index rose by 1.31%, with the Financial Services sector climbing 1.64%.

Trading Activity Insights

• Most Active Stocks:

  • Vodafone Idea: 62.59 crore shares
  • YES Bank: 8.2 crore shares
  • Tata Steel: 6.9 crore shares

• 52-Week Highs: Notable stocks like IndiGo, Atal Realtech, and GRM Overseas hit their 52-week highs during intraday trading.

• 52-Week Lows: Conversely, 54 stocks, including Jai Corp and LG Balakrishnan & Bros, reached their 52-week lows.

Market Outlook

According to Shrikant Chouhan, head of equity research at Kotak Securities, the 22,330 mark will be critical for the Nifty 50 moving forward. He indicated that if this level holds, there could be a rally up to 22,700, with potential further gains reaching 22,800. However, if the index dips below 22,330, it might trigger increased selling pressure, possibly retesting the 22,110-22,000 range.

For the latest updates on market trends and analysis, keep an eye on our detailed financial news sections.