In a significant boost to investor sentiment, Indian equity indices maintained an upward trajectory, marking a second consecutive day of impressive gains. Both the Nifty 50 and BSE Sensex soared over 2%, largely influenced by a notable announcement from U.S. President Donald Trump regarding a temporary halt on tariffs, including those affecting India. The potential rollback of 10% tariffs on automobiles and auto parts has further fueled optimism in the markets.
Market Performance Overview
Indian stock markets outshone global counterparts today, propelled primarily by major banking stocks. Renowned players such as HDFC Bank, ICICI Bank, and Axis Bank played pivotal roles in this rally. Additionally, Reliance Industries emerged as one of the top performers, contributing to the overall positive momentum. Remarkably, Indian benchmarks have nearly recovered all losses sustained since early April.
- Nifty 50: Jumped 500 points (2.19%) to close at 23,328.55, surpassing the 23,300 mark for the first time in a week.
- BSE Sensex: Increased by 1,577.63 points (2.10%), finishing at 76,734.89.
Sector Highlights
Among sectoral indices, the Nifty Realty showcased the most significant gains, climbing 5.64% to reach 834.75. However, banking and auto sectors experienced the steepest surges.
- Nifty Bank: Gained 1,377 points (2.70%), closing at 52,379.50.
- BSE Midcap: Rose 1,215 points (3.02%) to finish at 41,489.86.
Broader Market Trends
In line with the positive market sentiment, both small-cap and mid-cap stocks thrived, contributing to a favorable outlook. The India VIX, a measure of market volatility, decreased by 19.80%, settling at 16.13.
The overall market showed bullish trends, with 2,547 of the 3,009 stocks traded advancing, while only 377 faced declines. Notable gainers in the Nifty 50 included:
- IndusInd Bank: +6.67%
- Shriram Finance: +5.17%
- Tata Motors: +4.60%
- L&T: +4.50%
- Axis Bank: +4.35%
ITC was the only stock in the red, experiencing a slight decline of 0.28%.
Insights from Market Experts
Vinod Nair, Head of Research at Geojit Investments, commented on the market rally: “The unexpected pause in reciprocal tariffs, particularly the exemption on electronic goods, has energized the market. The broad-based performance across sectors like financials, capital goods, realty, and metals reflects growing optimism.” He cautioned, “Investors should remain vigilant about potential future supply chain disruptions due to increased tariffs on China and products such as steel and cars.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted the current market trend: “The ongoing uptrend is supported by daily chart formations, suggesting further growth is possible. However, with temporary overbought conditions, profit-taking may occur at higher levels. For traders, key resistance zones are around 23,400 and 23,500, while support levels lie between 23,200 and 23,135.”
Market Schedule Reminder
This week is short due to a local holiday on Monday and the upcoming observance of Good Friday on Friday, which will impact market operations.
As the markets continue to respond to global economic shifts, investors are keen to watch how upcoming developments may influence future trading sessions.
