Benchmark Indices Witness Relief Rally Amid Global Trade Thaw
Indian equity markets staged a robust rally on April 11 as President Donald Trump’s decision to pause reciprocal tariffs for 90 days sparked a wave of optimism across global financial markets. The Sensex surged over 1,300 points, while the Nifty 50 rose nearly 2 percent, closing near the 22,700 mark. The announcement provided investors with relief, particularly those exposed to sectors dependent on international trade and exports.
The relief rally was also buoyed by renewed discussions on a US-India bilateral trade agreement (BTA) and a drop in US recession fears after Goldman Sachs revised its economic outlook. As a result, sector-specific momentum was broad-based, with several export-oriented industries experiencing sharp gains.
Highlights:
Sensex jumped 1,300+ points; Nifty 50 gained nearly 2%.
Tariff pause by Trump eased recession fears and boosted trade sentiment.
Export-heavy sectors outperformed, including metals, IT, pharma, and EMS.
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Pharma Stocks React Positively to Trade Optimism
The Nifty Pharma index climbed over 2% to close at 20,462, as investors bet on the sector’s potential upside amid improving Indo-US trade prospects. While pharma tariffs were not directly addressed in the US announcement, the broader policy pause signals a conducive environment for negotiations.
Laurus Labs led the gains with a jump of over 7%, followed by Granules India (up over 4%) and Cipla, Biocon, and Sun Pharma, each rising more than 2%. The overall sentiment suggests investor expectation of smoother regulatory and tariff frameworks for drug exports to the US.
Highlights:
Laurus Labs surged over 7%; Granules, Cipla, Biocon also advanced.
Sector lifted by US-India trade optimism despite no direct pharma mention.
Nifty Pharma index closed over 2% higher.
IT Sector Shows Mixed Sentiment Amid Dollar Volatility
IT stocks initially surged on relief that tariff tensions may subside, especially after Goldman Sachs removed its US recession warning. However, a weakening dollar and fears of renewed US-China friction caused mid-day volatility.
Despite this, the Nifty IT index ended in the green, supported by strong performances from Persistent Systems and LTI MindTree, both up nearly 3%. Mphasis, Wipro, and HCL Tech closed over 2% higher, though giants like Infosys and Tech Mahindra gave up early gains.
Highlights:
Early rally driven by optimism over US growth outlook.
Persistent, LTI MindTree rose ~3%; Mphasis, Wipro gained over 2%.
Dollar weakness and US-China risks trimmed late-session enthusiasm.
Metals Lead the Market Rally with Broad-Based Gains
The Nifty Metal index emerged as the top sectoral performer, gaining over 4% to close at 8,168. The sector rebounded from previous selloffs triggered by Trump’s earlier tariff threats. Tata Steel, recovering from its own tariff-induced slump, rose nearly 5% to ₹133. Hindalco jumped almost 7%, while JSW Steel, SAIL, and Vedanta each posted strong gains.
Investors responded positively to the prospect of eased trade flows and a potential US-EU de-escalation, benefiting metal exporters with exposure to both markets.
Highlights:
Tata Steel, Hindalco, JSW Steel, Vedanta among top gainers.
Nifty Metal index up over 4%, best performing on Dalal Street.
Relief from tariff uncertainty lifted sentiment across the board.
Auto Component, Aquaculture Stocks Rally on US Exposure
Auto ancillary companies saw substantial gains owing to their large revenue dependence on US-based auto OEMs. Sona BLW rose 6%, and Samvardhana Motherson climbed nearly 5%. The tariff pause is expected to restore stability in US-bound shipments and input supply chains.
Aquaculture players also surged. Avanti Feeds jumped over 5%, Apex Frozen Foods nearly 4%, and Coastal Corp soared 9%, as shrimp exporters benefited from improved outlook in the US seafood market.
Highlights:
Auto components gained on hopes of steady US demand.
Sona BLW and Motherson among top performers.
Aquaculture stocks cheered export momentum amid tariff relief.
EMS, Electronics Stocks Surge on Apple’s India Sourcing Hopes
The electronic manufacturing services (EMS) space posted sharp gains, backed by expectations that global tech firms like Apple may pivot further toward India amid sustained US-China tensions. The tariff pause allows EMS companies to expand US-facing contracts without near-term pricing volatility.
Kaynes Technology rose over 5%, Dixon Technologies jumped more than 7%, and PG Electroplast surged over 8%. The momentum is expected to continue as India’s electronics exports build traction.
Highlights:
EMS sector gained on potential Apple-led export opportunity.
Kaynes Tech, PG Electroplast, and Dixon Tech saw 5–8% gains.
India seen as a stable alternate sourcing hub post tariff freeze.
Textiles, Solar EPC Firms Benefit from China Tariff Disruption
With Trump hiking tariffs on Chinese textiles to 145%, Indian textile exporters are emerging as viable alternatives. Stocks such as Grasim Industries (up 4%), Vardhman Textiles (up 6%), Welspun Living (up 9%), and Trident (up 3%) rallied sharply.
Similarly, solar EPC firms with strong US footprints, like Premier Energies (up 4%) and Waaree Energies, benefited from renewed prospects for project stability and order inflows from the US.
Highlights:
China’s loss may be India’s gain in textiles and solar hardware.
Grasim, Vardhman, Welspun, Trident rally on US export hopes.
Solar EPC players eye rebound in US project orders.
