Sensex, Nifty Jump Over 2% as Mid, Small-Caps Rally on Tariff Relief

Relief Rally on Dalal Street Fueled by Global Easing and Sectoral Optimism

Indian equities staged a broad-based rally on Tuesday, April 15, with benchmark indices Sensex and Nifty surging over 2%, mirroring strength across global markets after US President Donald Trump signaled tariff exemptions for smartphones and auto imports. The gains were widespread, with realty, banking, auto, and metal stocks leading the charge, while mid-cap and small-cap indices outperformed headline benchmarks. The India VIX — a key measure of market volatility — plunged by 20%, suggesting easing investor anxiety.

At the close, the Sensex jumped 1,577.63 points (2.10%) to 76,734.89, while the Nifty 50 rallied 500 points (2.19%) to settle at 23,328.55. In the broader market, 3,169 stocks advanced, against 764 declines and 162 unchanged, reflecting strong market breadth.

Aishvarya Dadheech, Founder and CIO at Fident Asset Management, termed the rise a “relief bounce”, suggesting that while the rally was driven by short-covering and reduced global risk, sustained upside will depend on further clarity around US-China trade dynamics.

Highlights:

• Sensex ends at 76,734.89 (+2.10%), Nifty at 23,328.55 (+2.19%).

• India VIX falls 20% as volatility eases.

• Rally driven by global trade optimism and short-covering.

• 3,169 stocks advance vs. 764 declines — strong market breadth.

Sectoral Surge: Realty, Auto, and Metals Outperform as Tariff Fears Recede

The Nifty Realty index emerged as the day’s top sectoral gainer, rising over 4.5%, buoyed by renewed interest in urban housing and infrastructure plays. The Nifty Auto index jumped 3.4%, tracking positive cues from the US where President Trump hinted at tariff exemptions for carmakers — a sentiment that lifted Tata Motors by over 4%, especially after the company halted US-bound shipments the previous week.

Nifty Metal gained 3%, with strong moves in key industrial names on expectations of revived export demand. The Bank Nifty, IT, Infra, Oil & Gas, and Pharma sectors all posted gains exceeding 2%. FMCG, which had seen some profit-taking earlier in the session, bounced back to end positive.

Highlights:

• Nifty Realty +4.5%, Auto +3.4%, Metal +3%.

• Tata Motors up 4% on auto tariff exemption signals from Trump.

• All major sectors close in green.

• Pharma and FMCG stocks stabilize after early volatility.

Broader Markets Outshine: Midcap and Smallcap Indices Extend Leadership

Investor interest shifted decisively to mid and small-cap stocks, with the Nifty Midcap 100 rallying 2.92% and the Nifty Smallcap 100 rising 3.02%. Analysts attribute this to better relative valuations, strong earnings outlook in select segments, and high domestic fund flows.

Dadheech of Fident Asset Management emphasized that stock-specific strategies should prevail over broad-based buying, urging caution amid ongoing global macro risks. While selective midcap names present upside, they also remain more vulnerable to external shocks.

Highlights:

• Nifty Midcap 100 up 2.92%, Nifty Smallcap 100 up 3.02%.

• Broader market outperformance supported by domestic buying.

• Analysts recommend selective, long-term exposure in mid and smallcaps.

Technical View: Nifty Resistance Near 23,300; Support Zones Eyed on Pullbacks

Technical indicators point to a potential breakout, with the Nifty trading near a key resistance zone of 23,200–23,300, aligning with the 89-day exponential moving average (DEMA). According to Sameet Chavan of Angel One, sustained movement above this level could fuel a fresh leg of bullish momentum, while any pullback could find support near 22,600–22,500, and deeper near 22,000, depending on global cues.

Chavan also emphasized that the ongoing earnings season, along with further geopolitical and economic developments, will heavily influence near-term direction.

Highlights:

• Key resistance at 23,200–23,300; support at 22,500–22,000.

• Breakout above 23,300 may trigger further bullish momentum.

• Markets to watch earnings data and global developments.

Stock-Specific Movers: IndusInd, L&T, Adani Green, Shriram Finance Lead Gainers

Among individual stocks, IndusInd Bank, L&T, Shriram Finance, and Adani Enterprises were among the top Nifty gainers. Notably, Adani Green Energy surged nearly 5% after reporting a 30% year-on-year increase in operational capacity, now totaling 14.2 GW, with 15.2 GW expected shortly. The new capacity additions include 2,710 MW of solar and 599 MW of wind energy, spread across Gujarat, Rajasthan, and Andhra Pradesh.

Meanwhile, ITC and Hindustan Unilever (HUL) were the only laggards in the Nifty 50 pack, facing mild profit-booking.

Highlights:

• Adani Green Energy +5% on strong capacity growth.

• Tata Motors +4% after auto tariff exemption comments.

• IndusInd Bank, L&T, Shriram Finance among top index gainers.

• ITC and HUL marginally lower amid sectoral rotation.