Sensex Jumps 600 Pts, Nifty Above 23,300 Ahead of Trump Tariff Decision

Sensex and Nifty Rebound Strongly After Two-Day Decline

Indian equity markets staged a strong comeback on April 2, with the benchmark indices reversing their two-day losing streak. The Sensex surged by 611.56 points, or 0.80%, to 76,636.07, while the Nifty 50 climbed 169.90 points, or 0.73%, to 23,335.60. The rally was broad-based, with market sentiment improving ahead of US President Donald Trump’s impending tariff decision, which is set to take immediate effect. Market breadth was positive, with 2,553 shares advancing, 941 declining, and 104 remaining unchanged.

• Sensex gained 611.56 points to close at 76,636.07.

• Nifty 50 rose by 169.90 points, settling at 23,335.60.

• Investor sentiment turned positive ahead of Trump’s tariff decision.

Global Trade Uncertainty Looms Over Market Sentiment

The optimism in the Indian stock markets was accompanied by concerns about how the new US tariff measures would impact global trade. Experts believe that while markets are rallying in the short term, the full effects of the trade policy shifts have yet to be factored in. Analysts suggest that if investor sentiment turns pessimistic post-announcement, markets could experience renewed pressure.

• Market optimism persists despite uncertainty surrounding US tariffs.

• Experts caution that tariff implications are not fully priced in.

• Possible downside risks remain if investor sentiment weakens post-announcement.

Midcap and Smallcap Indices Rally on Broader Market Strength

The positive sentiment extended to the broader market, with the Nifty Midcap 100 index rising by 1.4% and the Smallcap 100 index gaining 1%. This comes after a period of sharp corrections in these segments, with the Midcap and Smallcap indices having declined by 9% and 14%, respectively. Despite the rebound, analysts warn that stretched valuations could limit further upside potential.

• Nifty Midcap 100 rose by 1.4%, while Smallcap 100 gained 1%.

• Sharp corrections in recent months led to valuation concerns.

• Further upside may be limited due to stretched valuations.

Sectoral Performance: Banking, IT, and FMCG Stocks Lead Gains

Among sectoral indices, the Nifty FMCG, Banking, IT, and Auto indices were the top performers, each rising nearly 1%. Heavyweight banking stocks such as HDFC Bank, ICICI Bank, and SBI played a significant role in lifting the index. Nifty Infra, Metal, Pharma, and PSU Bank indices also saw moderate gains of around 0.5% each. Meanwhile, the Nifty Oil & Gas index slipped by 0.2%, and the Energy index declined slightly by 0.1%.

• Banking, FMCG, IT, and Auto sectors gained nearly 1% each.

• HDFC Bank, ICICI Bank, and SBI led the rally in banking stocks.

• Nifty Oil & Gas and Energy indices were the only sectoral laggards.

Technical Outlook: Key Levels to Watch for Nifty 50

Technical analysts highlighted that Nifty’s recent dip saw the index retracing 38.2% of its previous rally, testing a crucial support zone around 23,100. This level aligns with both the 20-day and 50-day Exponential Moving Averages (DEMA), making it an important support point. Analysts suggest that a breach of this level could lead to further downside toward the 23,000–22,900 range. For a sustained uptrend, Nifty needs to decisively break above 23,350 and then 23,600.

• Nifty is testing key support at 23,100, aligned with the 20 and 50 DEMA.

• A breach below 23,100 could push the index lower to 22,900.

• Upside momentum requires Nifty to break 23,350 and 23,600 levels.

Tata Consumer Products Surges 7% After Brokerage Upgrade

Tata Consumer Products saw a sharp rally of over 7% after Goldman Sachs upgraded the stock from ‘neutral’ to ‘buy’ and raised its price target. The brokerage cited strong earnings growth potential for FY25–FY27 and an expected recovery in tea margins driven by price hikes. The stock’s strong performance boosted investor confidence in the consumer goods sector.

• Tata Consumer Products surged over 7% following a Goldman Sachs upgrade.

• Goldman Sachs projects strong earnings growth from FY25 to FY27.

• Tea margin recovery expected to drive profitability.

Vishal Mega Mart Rises Over 6.5% on Strong Retail Sector Growth

Vishal Mega Mart shares rallied over 6.5% amid strong business updates from peer companies in the retail sector. V-Mart Retail, a competitor, reported 17% revenue growth for the March quarter, with same-store sales increasing by 8% year-on-year. The company also expanded its presence by adding 53 new stores during the financial year, leading to a 10% surge in its stock price.

• Vishal Mega Mart stock gained 6.5% on retail sector momentum.

• Competitor V-Mart Retail reported 17% revenue growth.

• Expansion of store footprint contributed to retail sector gains.

TVS Motor Gains 3% on Record Annual Sales Growth

TVS Motor Company witnessed a 3% jump in its stock price after reporting its best-ever annual sales performance. The company sold 4.74 million units in FY24-25, marking a 13% year-on-year growth. March 2025 sales figures were also strong, with a 17% YoY increase to 4,14,687 units, underscoring sustained demand in the two-wheeler market.

• TVS Motor stock gained 3% on record-breaking sales growth.

• Annual sales rose 13% to 4.74 million units in FY24-25.

• March sales increased 17% year-on-year to 4,14,687 units.

Top Gainers and Losers in Nifty 50

The top gainers in the Nifty 50 included Tata Consumer Products, Zomato (Eternal), Titan Company, IndusInd Bank, and Trent. These stocks saw strong buying interest amid improving market sentiment. On the other hand, Bharat Electronics, UltraTech Cement, Power Grid Corporation, Nestle, and HCL Tech were among the top losers, witnessing mild profit booking after recent gains.

• Top gainers: Tata Consumer Products, Zomato (Eternal), Titan, IndusInd Bank, Trent.

• Top losers: Bharat Electronics, UltraTech Cement, Power Grid, Nestle, HCL Tech.