Sensex, Nifty rise over 1% on positive global cues

By | April 8, 2025

Sensex, Nifty Rise Over 1% as Global Market Sentiment Improves

After enduring a string of sharp losses in the past three sessions, Indian stock markets rebounded on Tuesday morning, led by a wave of optimism across global equity markets. Both the Sensex and the Nifty 50 registered gains of over one percent in early trades, buoyed by positive signals from Asian markets and a slight easing in investor concerns over global trade tensions.

Positive Opening for Benchmarks

The BSE Sensex opened at 74,013.73, reflecting a rise of 1.19% compared to Monday’s closing figure of 73,137.9. Similarly, the NSE Nifty 50 started the day at 22,446.75, up by 1.28% from the previous close of 22,161.6. The rally brought much-needed relief after Monday’s rout, which had seen both indices fall nearly 3%, their worst single-day performance since June 4, 2024.

Asian Markets Rally, Lifting Sentiment

Asian markets also staged a sharp recovery, helping lift investor mood globally. Japan’s Nikkei 225 surged over 5%, marking one of its strongest intraday performances in recent weeks. The Hang Seng index rose by 1.33%, while China’s Shanghai Composite posted gains close to 1%.

Market analysts noted that global investors responded positively to reports suggesting the U.S. might delay the implementation of its latest round of tariffs on Chinese goods. Although the White House later denied the delay, the brief hope was enough to trigger a rebound in early trades.

Trade War Jitters Still Linger

Despite Tuesday’s bounce, concerns about escalating trade tensions between the United States and China remain unresolved. On Monday, U.S. President Donald Trump announced a 50% additional duty on imports from China, unless Beijing rolls back its own retaliatory 34% tariff. These reciprocal measures have renewed fears of an all-out trade war.

Devarsh Vakil, Head of Prime Research at HDFC Securities, noted that while markets briefly recovered on speculation around tariff delays, the quick correction after the White House clarification showed how jittery investors remain. “The markets are extremely sensitive to news flow right now,” he said.

Volatility Cools After Monday Spike

The India VIX, which measures expected near-term volatility, cooled off significantly. It dropped 13.97% to 19.61 in the morning session, after having spiked to 22.79 the day before — a 65.7% increase. This decline in volatility suggests that panic selling may have subsided for now, although caution still rules the sentiment.

Broader Markets Join the Rally

Gains were not limited to large-cap indices. The Nifty Midcap 100 rose 2.1%, while the Nifty Smallcap 100 gained 2.5% in morning trades. These indices had borne the brunt of Monday’s sell-off and are now showing early signs of recovery.

Among sectoral indices, Nifty Metal led the charge with a 2.3% rise, followed by Nifty IT, which was up 1.09%. The surge in metal stocks comes amid speculation that China might redirect exports to other countries in response to U.S. tariffs, potentially influencing global commodity prices.

Top Gainers in Morning Trades

Some of the notable performers on the Nifty in early trades included:

  • Titan – up 5.84%
  • Shriram Finance – up 4.72%
  • Bajaj Finserv – up 3.91%
  • Bharat Electronics – up 3.88%

These stocks led the rebound and showed strong buying interest, especially after the steep correction seen on Monday.

Expert Views: Wait and Watch

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, urged investors to stay cautious in the near term. He pointed out that global uncertainty is still high, especially with trade tensions flaring up. However, he maintained a positive view on India’s long-term prospects.

“India’s economic fundamentals are strong. Our GDP growth projections remain at around 6% for FY26, and valuations are reasonable, particularly in large-cap stocks,” he said.

He also highlighted that India’s ongoing negotiations for a bilateral trade agreement with the U.S. could help reduce risks. Furthermore, he emphasized that Trump’s current tariff measures do not target pharmaceutical imports, making Indian pharma stocks attractive for long-term investors.

Outlook for Investors

While Tuesday’s bounce brought some relief, market participants remain in a cautious mode. Experts suggest that clarity on global policy decisions, especially concerning U.S.-China trade relations, will be key to setting the direction for equity markets.

Short-term volatility is likely to persist, but for investors with a long-term horizon, current market levels — especially in quality large-cap stocks — could present an opportunity to accumulate.