Tag: sensex

Indian equity markets entered a new realm on Wednesday when BSE Sensex closed above 80,000 for the first time in 2025, capping yet another seven-day rally. Technology stocks surged leading the charge. The Nifty IT Index registered its biggest single-day jump in nine months. It was set up by HCL Technologies, serving up robust quarterly results, which sent shares up 8%. Infosys, Wipro, TCS, and Tech Mahindra were not left behind, serving up gains of between 3% and 6%.

The automotive, pharmaceutical, and real estate sectors were moving forward, with their respective stocks advancing by 1% to 2%. In contrast, the banking sector was lagging. Both the Nifty Bank and the PSU Bank indices slipped by around 0.6%. Investment sentiment, however, remained upbeat, bolstered by strong signals from the global markets.

Global Cues Fuel Domestic Optimism

Dalal Street drew much of its force from sharp moves on Wall Street. US indices saw large moves to the upside overnight after President Donald Trump made some remarks that seemed to suggest a softening of his hard-line approach to tariffs on Chinese imports. This was read as a potential breakthrough in ongoing trade negotiations, Trump also made reassuring comments about Federal Reserve Chair Jerome Powell, which certainly didn’t hurt market sentiment.

The immediate impact was felt in the markets. The Nasdaq Composite shot up nearly 4%, the Dow Jones soared 2.3%, and the S&P 500 jumped close to 3% in mid-session trades. These developments lifted investor spirits across Asian markets, including India, pushing benchmark indices to fresh highs.

FIIs Back in Action

Foreign institutional investors have been pivotal to the recent upturn of the market. On a single day, Wednesday, FIIs made net purchases to the tune of INR 3,333 crore. Over the last five trading days, they have pumped in around INR 20,410 crore, which is almost USD 2.4 billion, into Indian equities. This renewed foreign capital inflow has imparted a lot of confidence in the domestic investors, and this is what seems to be the main factor behind the rally.

At the same time, the Sensex has increased by nearly 6,300 points, or 8.5%, from its close of 73,847 on April 9, to now. The rally has bestowed upon investors an added wealth of about 3.1 lakh crore rupees, as the BSE’s total market capitalization now stands at about 430.5 lakh crore rupees.

Gains Come With a Note of Caution

Even though the mood is still upbeat, some market experts are advising investors to be cautious. They say that rising crude oil prices and an ambiguous trend in corporate earnings could lead to the market consolidating over the short term.

Vinod Nair, the Head of Research at Geojit Investments, remarked that easing US-China trade frictions and a surge in US technology stocks have greatly improved the sentiment in global markets. Yet, he also mentioned that we should not ignore the possibility of a near-term consolidation in the markets due to some mixed domestic earnings reports, the rise in crude oil prices, and the rally in the markets all by themselves.

Following a sell-off that occurred on Monday as a result of fears concerning an escalating trade war, the Indian markets regained their footing on Tuesday. The BSE Sensex shot up more than 1,000 points to settle at 74,227.08, while the NSE Nifty took a leap of 374.25 points to close at 22,535.85. Both these benchmarks recovered 2% as part of a much broader Asian rally, during which the hope prevailed that the U.S. might ease up on its aggressive new tariff program.

U.S. President Donald Trump set the stage when he stated that Japan would be sending a group to negotiate, which, in my opinion, showed that the U.S. would be sending some signals that it might be flexible in its trade position. At any rate, markets liked what they heard. Consequently, the Nikkei was up 6%, which is a nice day for the Japanese stock market. The recovery in the stock market is also apparent in the Indian stock market.

Oversold Markets and Sectoral Resilience

Domestic experts believe that the rebound on Tuesday was expected. The markets had been oversold. Tuesday provided an opportunity for investors to accumulate quality stocks at lower levels, especially in sectors that are less impacted by trade tensions.

As per Yogesh Kansal, cofounder of Appreciate, the recovery has been spearheaded by firms that are virtually unaffected by tariffs, particularly in the tech and finance sectors.  IT stalwarts Infosys, HCL Tech, Tech Mahindra, L&T notched up at least 3% gains. Banking and finance not only took back all the previous week’s losses but also recorded fresh gains, which helped stabilize the broader indices.  Titan was a standout performer in this rally, surging nearly 5% after reporting a whopping 25% increase in standalone revenue for the March quarter, thanks to strong gold sales.

The Trigger: Trump’s Tariff Push and Market Response

The worldwide market volatility was triggered by Trump’s statement about his sweeping tariffs. These include a minimum 10% rate on all U.S. imports and possible 50% duties on Chinese goods. He said that his measures are meant to help restore America’s industrial base. He claimed no other president would attempt such a radical reset of trade policy.

U.S. indices were briefly buoyed by rumors that there could be a 90-day pause in the enforcement of tariffs. This temporary lift, buoyed by the rumor, was enough to slow the freefall and preserve some cautious optimism in global markets.

Investors Eye Talks, But Caution Lingers

Even though we have seen a recovery, there is still uncertainty. President Trump takes a very hard line on trade. His inclination is toward protectionism. And that directly impacts his thinking when it comes to China. The trading relationship with China, in turn, affects a whole host of companies that are involved in manufacturing or trading with China.

The rally in Indian markets at home is a testament to investor resilience, especially in sectors that are insulated from global policy shocks. The all-time highs being witnessed by Indian equity indices seem to have a solid base, with a lot of domestic participation in the markets from retail and institutional investors, going by the pace of the move and the kind of stocks that are moving with it.

Following its sharpest drop in ten months, the Indian stock market displayed an impressive recovery on Tuesday. It was driven by renewed global optimism and a rush by investors to buy at bargain prices. The BSE Sensex jumped 1,089.18 points, or 1.49%, to close at 74,227.08. The Nifty 50 advanced too, climbing 374.25 points, or 1.69%, to finish the day at 22,535.85. This surge was not limited to India; global equity markets joined the rally. Both U.S. and European indices staged a strong comeback after the previous day’s decline. News of easing trade tensions seems to have helped. Investors are also happy with China’s recent move to devalue its currency.

RBI Policy and Technical Outlook

Investors are keeping a close watch on the Reserve Bank of India’s policy decision, which is due this Wednesday. Market expectations are concentrated on a rate cut of 25 basis points, which could give investor sentiments a nice little boost if it comes to pass. Technical indicators also seem pretty optimistic. According to analysts, the Nifty found a strong base around 21,800 after dipping below its 20-day EMA. It then moved back above this technical indicator and created what is being called a nice little bullish candlestick pattern. A journey toward the 22,950–23,000 level is being anticipated; and if it can get above 23,200, we could see this it shift back into a nice bullish little move.

Stock Movers and Turnover Leaders

In terms of trading, several larger-cap names took the spotlight in the turnover charts. Leading them was HDFC Bank, with trades running worth INR 3,146 crore. Next came some of the other big heavyweights, like Reliance Industries, Infosys, TCS, ICICI Bank, and Trent. If one looked at volume, though, Vodafone Idea was the standout, with over 62 crore shares exchanged. YES Bank, Tata Steel, and Zomato also had fairly large volumes compared to their averages.

On the buying side of things, there appeared to be some renewed interest in some previously hard-hit counter stocks. Zee Entertainment, Vijaya Diagnostic, Kaynes Technology, and Newgen Software all saw fairly good buying. These counters, which are genuinely uncertain in terms of long-term growth prospects, could see some continued attention in the sessions to come.

Sentiment Overview and Sector Snapshot

The vibe of the market was overwhelmingly positive. Of the 4,083 stocks listed on the BSE and traded on Tuesday, 3,093 advanced while a mere 871 declined. The bullish sentiment appeared sector-wide, with defense, tech, and energy shares leading the way globally. European stocks rebounded sharply from 14-month lows, showing that policy responses to the U.S. tariff situation were helping offset the impact.

Not all stocks rode the updraft, however. Siemens, Jindal Saw, Wockhardt, and a few other counters saw notable selling pressure. It’s hard to pick a fault with the overall tone of the market as it awaits signals from central banks and further trade developments.

The Indian stock markets took a sudden hit on Monday, with the Sensex crashing by 2,226.79 points to hit 73,137.90 and the Nifty falling by 742.85 points to 22,161.60. This sharp downturn followed intensifying trade disputes after U.S. President Donald Trump announced that he would impose hefty tariffs on all of America’s trade partners. Increased global economic uncertainty, especially the fear that countries like China, Canada, and Mexico will retaliate, has investors spooked.

This was not an isolated downturn. It hit markets all over the world, and especially, it seems, in Asia and the US. Japan’s index slumped 8%, while China’s dropped by 10%. Wall Street, already on shaky ground, saw the S&P 500 fall 6% and the Dow Jones shed over 2,000 points on Friday, marking its worst performance since the early days of the COVID-19 pandemic.

Tech and Export – Driven Stocks Take a Hit

Sectors at home that depend a great deal on international markets, especially Information Technology and manufacturing, really got hit hard by the selloff. Tata Steel was down by more than 9 percent, and Tata Motors was down more than 8 percent. Other major laggards included Infosys, HCL Technologies, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Reliance Industries. The United States is a major market for Indian IT services and for exports of engineering work, and fears of rising tariffs on such goods certainly didn’t help. Those sectors also weakened.

The wider issue is that a prolonged trade dispute could push up costs, squeeze profits, and slow demand around the world. With earnings season looming, many investors have taken to recalibrating the forecast for corporate profit margins in the immediate future.

Inflation and Recession: A Dual Threat

The timing of the tariff escalation couldn’t be worse. Inflationary concerns are already on the radar, and the new trade restrictions are expected to push consumer prices even higher. Analysts believe that costlier imports, from raw materials to finished goods, will either eat into company margins or be passed on to consumers, worsening inflation.

Federal Reserve Chair Jerome Powell conceded that the new tariffs are higher than expected and pointed to the danger of them causing both inflation to rise and growth to slow. At the same time, investors are bracing for the next installment of US consumer price data; the working assumption is that the report will show a 0.3% monthly increase for March. Analysts are also bracing for some disarray in the forward earnings guidance that companies will provide; with so much uncertainty now, it seems likely that fewer companies than usual will feel able to offer that kind of guidance.

What Lies Ahead for Indian Investors

Despite the fear in the air, market specialists told anxious investors not to panic and to stick with their investments. We are advising our clients not to react in a knee-jerk fashion, and instead, to continue with a disciplined approach to investing, said Pranay Aggarwal, head of Stoxkart. He went on to say that such an approach would include: 

 – Not stopping SIPs

 – Looking for opportunities to buy quality stocks when markets course correct 

 – Have a diversified portfolio.

The road ahead is bumpy, but investors must remember that painful corrections are part of the long-term investing experience. As international events develop, Indian markets will react to them, demanding even greater levels of vigilance, patience, and strategic positioning from the investor.