Indian Equities Rebound Sharply Following Global Market Recovery
Indian stock markets posted a strong rebound on Tuesday, April 2, with the benchmark indices recouping a significant portion of the previous session’s losses. The BSE Sensex surged 1,617.16 points, or 2.21%, to close at 74,755.06, while the NSE Nifty climbed 504.6 points, or 2.27%, to settle at 22,666.20. This sharp rally came on the back of a global market recovery, renewed optimism in Asian indices, and across-the-board buying by institutional and retail investors alike.
The strong recovery followed Monday’s steep decline, when Indian equities suffered their sharpest single-day fall in nearly 10 months amid heightened global trade tensions and volatility triggered by the US’s imposition of reciprocal tariffs. However, Tuesday’s market action indicated a swift change in sentiment as investors interpreted global cues more favorably.
Sensex rose over 1,600 points, marking one of its strongest single-day rallies in recent months.
Nifty reclaimed the 22,650 mark, comfortably crossing key resistance levels.
Broad-based buying saw gains across all 13 sectoral indices.
Sectoral and Stock-Specific Performances Show Broad Participation
Almost all of the major sectoral indices on the NSE and BSE ended in positive territory, reflecting widespread investor confidence. The Nifty Bank index, often viewed as a barometer for domestic sentiment, contributed significantly to the rally. Financials, industrials, and consumer-facing companies outperformed, while IT and FMCG names added to the momentum.
Among the top gainers were Titan Company, Adani Ports, Bajaj Finserv, State Bank of India, Axis Bank, UltraTech Cement, Larsen & Toubro, and Tata Steel. These heavyweights provided much of the upside thrust for the broader indices, with most of them rising between 3 to 6 percent intraday.
Titan and Adani Ports posted strong gains, supporting index movement.
State Bank of India, Axis Bank, and Bajaj Finserv helped lift the financials pack.
Industrial heavyweights like L&T and Tata Steel drove optimism in the infra and metals space.
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Positive Asian Market Cues Revive Risk Appetite
Markets in Asia rebounded strongly on Tuesday, and the upward momentum spilled over to Indian equities. Japan’s Nikkei 225 posted a staggering 5.5% jump, its highest daily gain in several months, while China’s Shanghai Composite recovered close to 1%. The bounce was attributed to speculation that the US could soften its aggressive tariff stance after seeing the initial fallout in global equity markets.
The optimism came despite the previous day’s negative close on Wall Street. The Nasdaq eked out a modest 0.10% gain, but the S&P 500 and Dow Jones registered slight losses. Nevertheless, investors across Asia took a more constructive view, focusing on potential diplomatic overtures from key economies, which offered hope that the trade dispute would remain contained.
Japan’s Nikkei posted a gain of over 5.5%, boosting regional sentiment.
Shanghai Composite’s mild recovery indicated stabilization in Chinese markets.
Market participants expect the US to revise its tariff outlook if global disruption continues.
US-China Trade Conflict Viewed as Isolated Event
Despite rising tensions between the United States and China, many analysts believe that the trade war could be restricted largely to these two major economies. President Donald Trump’s threat of an additional 50% tariff on Chinese goods if Beijing retaliates is seen as an extreme measure unlikely to be applied to other major trading partners such as the European Union, Japan, or India.
Experts also emphasized that countries like India have already taken preemptive steps to safeguard bilateral trade relations with the US, including initiating discussions around a Bilateral Trade Agreement (BTA). This strategy could offer Indian exporters a cushion from the broader impact of the tariff standoff.
Trade tensions likely to remain US-China centric, sparing other economies.
India is engaging in trade diplomacy through BTA discussions.
Risk of US recession rising amid aggressive tariff policies.
Strong Domestic Macros Reinforce Investor Confidence
India’s solid macroeconomic fundamentals provided underlying support to the equity rally. The recently released Economic Survey for 2024-25 projected GDP growth in the range of 6.3% to 6.8%, even as global risks such as oil price volatility and trade disruptions persist. Additionally, low inflation, stable currency levels, and healthy foreign exchange reserves have kept investor sentiment buoyant.
According to senior analysts, large-cap stocks are still trading at relatively attractive valuations, making them prime targets for both domestic and global institutional investors. Moreover, expectations of continued economic momentum, driven by government spending and private sector investment, remain intact.
FY26 GDP growth projected at 6.3%–6.8% despite external risks.
Macro indicators remain favorable: low inflation, stable rupee, rising forex reserves.
Largecap valuations remain supportive of sustained institutional buying.
Technical Outlook Signals Volatility Ahead Despite Uptrend
While the rally restored market momentum, technical analysts warned of elevated volatility in the near term. The India VIX, a key measure of market volatility, spiked nearly 70% during the session, reflecting potential caution among traders. Analysts believe that while the Nifty has reclaimed key resistance zones, the next range of consolidation could emerge between 22,320 and 22,660 in the short term.
The index is currently testing resistance near the 22,660 level, and a sustained breakout above this zone could lead to a fresh rally. However, any fresh geopolitical shock or unexpected macroeconomic data may trigger swift corrections.
India VIX jumped nearly 70%, signaling high short-term volatility.
Key support seen around 22,320 and resistance at 22,660 for Nifty.
Technical indicators suggest potential consolidation in coming sessions.
