The Indian stock market staged a strong rebound on Tuesday, 8 April, as the benchmark Sensex snapped a three-day losing streak with a gain of 1,089 points, or 1.49 per cent, closing at 74,227. The Nifty 50 also rallied, ending the session 374 points, or 1.69 per cent, higher at 22,536.
This sharp recovery followed similar trends across global markets, with investor sentiment buoyed by hopes of de-escalation in the ongoing trade tensions.
Though concerns remain, many nations are now in talks with the United States after President Donald Trump announced sweeping tariffs on 2 April. Both Japan and the European Union have signalled willingness to engage in discussions to avoid a full-scale trade conflict.
Positive developments on this front contributed to a broad-based rally in Asian and European markets. Japan's Nikkei surged by 5.68 per cent, while European indices including the FTSE, CAC, and DAX posted gains of around one per cent by the time Indian markets closed.
The broader Indian market outperformed the benchmarks, with the BSE Midcap index climbing 1.87 per cent and the Smallcap index rising 2.18 per cent.
As a result of the rally, investors saw their wealth increase by approximately ₹8 lakh crore in a single trading session. The total market capitalisation of companies listed on the BSE rose to nearly ₹397 lakh crore from ₹389 lakh crore in the previous session.
Key Factors Behind the Market Rally
According to analysts, the domestic equity market benefited from positive global cues amid easing concerns over the impact of US tariffs.
“Positive global market cues aided the massive recovery in local benchmarks, as concerns over US trade tariffs faded a bit on hopes that most of the nations would work out ways to overcome the challenge. With India largely being a consumption-led economy, the US tariff impact may not hurt the country in a major way compared to some of the other nations,” said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities.
Additionally, investors are closely watching the Reserve Bank of India's monetary policy decision due on Wednesday, with expectations of a further 25 basis point rate cut.
Market Highlights
Among the Nifty 50 constituents, 49 stocks ended in the green. Jio Financial Services rose 5.61 per cent, Shriram Finance gained 5.21 per cent, and Bharat Electronics advanced 3.69 per cent, emerging as the top gainers.
Power Grid Corporation of India was the only stock in the index to close marginally lower, down 0.09 per cent.
All sectoral indices ended with gains. Nifty Media surged 4.72 per cent, followed by PSU Bank (2.64 per cent), Consumer Durables (2.59 per cent), Realty (2.47 per cent), and Oil & Gas (2.20 per cent). Nifty Bank rose by 1.31 per cent, and the Financial Services index gained 1.64 per cent.
In terms of trading volume, Vodafone Idea led the pack with 62.59 crore shares changing hands, followed by YES Bank (8.2 crore shares) and Tata Steel (6.9 crore shares).
A total of 52 stocks, including IndiGo, Atal Realtech, and GRM Overseas, hit their 52-week highs on the BSE. Interestingly, despite the overall bullish sentiment, 54 stocks, including Jai Corp, Orchid Pharma, and LG Balakrishnan & Bros, touched 52-week lows.
Meanwhile, 124 stocks hit their upper price bands on the NSE, including Godfrey Phillips India, Garware Hi-Tech Films, and Parsvnath Developers.
Provisional data indicated that 2,391 stocks advanced on the NSE, while 499 declined and 67 remained unchanged, reflecting strong breadth in the market.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, stated that 22,330 is an important level to watch on the Nifty.
“If this level is sustained, the pullback could extend to 22,700, with further upside potentially reaching 22,800. However, if the index fails to hold above 22,330, selling pressure may intensify, and it could retest the 22,110–22,000 range,” Chouhan explained.
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