Investor Wealth Jumps ₹10.9 Lakh Crore as Nifty, Sensex Rebound from Post-Holiday Losses

Markets Surge as Trade Tensions Ease, Financials Lead Rebound

In a dramatic return to strength, Indian equity markets rallied sharply on Tuesday, registering one of the largest single-day wealth additions in recent memory. The BSE market capitalization jumped by Rs 10.9 lakh crore, driven by a powerful rally across sectors, with the Sensex surging over 1,750 points and the Nifty soaring past the 22,300 mark. The bullish momentum erased all the market losses seen since Liberation Day, pushing benchmark indices back to pre-April 4 levels.

Leading the gains were financials, the sector with the highest index weight, which rose more than 2 percent. The smallcap and midcap indices, which had underperformed in recent weeks, rebounded with vigor, gaining 3 percent each, signalling broad-based risk appetite among investors.

Highlights:

• Rs 10.9 lakh crore in market cap added in a single session.

• Sensex jumps over 1,750 points, Nifty crosses 22,300.

• Financials, smallcaps, and midcaps lead the charge with 2–3% gains.

Global Catalyst: US Delays Tariffs, Markets Breathe Easy

The spark for the rally came from a surprise move by the US government, which announced a 90-day delay in implementing retaliatory tariffs, excluding China. The geopolitical recalibration triggered optimism among investors, particularly those betting on India’s role in the China Plus One strategy. With global supply chains continuing to pivot away from China, Indian equities in manufacturing, logistics, and infrastructure saw renewed interest.

On the National Stock Exchange, the mood was unequivocally bullish—advances outnumbered declines 7:1, and all 13 sectoral indices ended in the green. The surge was backed by robust domestic participation, with institutional investors stepping in with large-volume trades.

Highlights:

• US postpones tariff action on most countries, excluding China.

• Sentiment turns risk-on, with India seen as a key beneficiary of supply chain diversification.

• NSE advance-decline ratio hits 7:1, indicating widespread participation.

Domestic Fundamentals Shine Amid Global Volatility

The rally also reflects confidence in India’s macroeconomic fundamentals, which remain resilient despite global uncertainty. Robust domestic demand, a relatively insulated export profile, and easing inflation have turned India into a relative safe haven among emerging markets.

While Foreign Institutional Investors (FIIs) have yet to show definitive volume trends for the day, preliminary dealer feedback indicated that institutional buying was strong, particularly in banks, consumer goods, and energy stocks. The rally follows closely after India’s retail inflation cooled to 3.34%, a 67-month low, adding to optimism over potential monetary easing by the Reserve Bank of India in the coming months.

Highlights:

• Retail inflation at 3.34%, boosting hopes of continued RBI support.

• Strong domestic demand and low trade exposure to US-China conflict help bolster India’s case.

• FIIs seen as net buyers, though data is awaited.

Focus Shifts to Earnings, Global Cues

With markets reclaiming ground lost after the Liberation Day slide, attention is now turning to the upcoming corporate earnings season and signals from global central banks. Analysts have cautioned that despite Tuesday’s rally, volatility may return if earnings disappoint or if US-China trade rhetoric hardens.

Still, the magnitude and breadth of Tuesday’s bounceback underline the market’s conviction in India’s growth narrative. Sectors linked to banking, capital goods, digital infrastructure, and rural demand are likely to remain in focus.

Highlights:

• Eyes on Q4 earnings season to confirm growth momentum.

• Global central banks and US-China trade developments remain key watchpoints.

• Bullish sentiment intact but rally sustainability hinges on earnings quality.