Market Wrap: Bargain Buying, Global Cues Lift Indian Benchmark Indices; RBI Rate Cut Hopes Add Momentum
About 2,391 stocks are advancing as against 499 stocks that are declining, thus indicating a positive market breadth in the broader market.
Market Update at 4:00 PM: Indian equity indices closed in the green on Tuesday, lifted by bargain buying and a broader Asian rally, as hopes that global trade tensions might ease helped domestic markets recover from their worst drop in 10 months.
The Sensex closed almost 1,087 points or 1.49 per cent higher at 74,225, while the Nifty 50 closed 373 points or 1.69 per cent higher at 22,161, the index is trading below all-important moving averages with a high margin. The Nifty Bank closed 650 points higher and settled at 50,511, mirroring benchmark indices.
On the NSE, the benchmark index Nifty 50 recorded a 46.82 crore volume, whereas the last 20-day average volume stands at 36.58 crore.
Broader indices traded with gains, where Nifty Mid-Cap surged by 2.11 per cent, while Nifty Small-Cap ended higher by 2.13 per cent. India VIX traded near 20 mark and was down by 10 per cent during the day.
On Tuesday, the Nifty recorded its strongest performance in three months, while the Sensex logged its best day in three weeks.
The rally followed remarks by U.S. President Donald Trump, who mentioned that Japan would be sending a delegation to negotiate on tariffs, fueling optimism that the U.S. might ease its tough trade stance. However, Trump also cautioned that if China continues with its retaliatory actions, an additional 50 per cent tariff on Chinese goods could be imposed.
Meanwhile, markets are anticipating that the RBI will likely announce a 25 basis point cut in its policy rate on Wednesday.
On the sectoral front, all sectors recorded gains, with Nifty Media, up more than 4 per cent, being the top-gaining sector.
As of 8th April 2025, the NSE reported 17 stocks at their 52-week high and 22 stocks at their 52-week low. Additionally, 124 stocks were locked in the upper circuit, while 45 stocks were in the lower circuit. The number of registered investors on the exchange stood at 22,02,32,735. The total market capitalisation was Rs 394.34 lakh crores, equivalent to approximately USD 4.59 trillion.
On the same day, the market turnover showed strong activity. In the equity segment, 330.44 crore shares were traded, with a total value of Rs 94,237.07 crores. The equity derivatives segment witnessed a volume of 10.34 crore contracts, generating a value of Rs 2,09,340.66 crores, with an open interest of 2.11 crore contracts.
About 2,391 stocks are advancing as against 499 stocks that are declining, thus indicating a positive market breadth in the broader market.
Market Update at 2:30 PM: The Sensex jumped 1.8 per cent to 74,500, while the Nifty 50 dropped 1.66 per cent to 22,517, as bargain hunting and a broader recovery across Asia lifted sentiment amid hopes of U.S. tariff negotiations.
On Tuesday, small and midcap stocks traded with huge losses, dragging broader market indices into positive territory. The Nifty Small-cap index jumped by almost 2.09 per cent, while the Nifty Mid-cap index was down over 2.01 per cent during mid-day trade.
Meanwhile, the India VIX was trading near the 21 mark, down by 7 per cent.
On the sectoral front, all sectors recorded gains, with Nifty Consumer Durables, up more than 2.5 per cent, being the top-gaining sector.
The broader market on the National Stock Exchange (NSE) is showing mixed sentiment today. A total of 12 stocks are currently trading at their 52-week high, while 20 stocks have slipped to their 52-week low. Meanwhile, 100 stocks have hit their upper circuit limits, indicating strong buying interest, whereas 44 stocks have fallen to their lower circuit limits, reflecting sharp declines.
About 2,312 stocks are advancing as against 410 stocks that are declining, thus indicating a positive market breadth in the broader market.
Market Update at 12:15 PM: Indian benchmark indices bounced back on Tuesday, recovering from the sharp losses seen in the previous session. Improved sentiment was driven by bargain hunting and a broader upswing across Asian markets, fueled by optimism over potential U.S. tariff negotiations.
The RBI is widely expected to cut 25 basis points on Wednesday amid expectations that its monetary policy could likely turn more supportive as tariffs threaten to hurt economies globally.
By midday, the Nifty 50 was trading with gains, up 360 points from its previous close, trading above the 22,500 mark with gains of 1.64 per cent. Similarly, the Sensex trading is trading higher with a gain of 818 points or 1.1 per cent. The Bank Nifty mirrored benchmark indices, up by 1.21 per cent. Meanwhile, the India VIX was trading near the 20 mark, down by 10 per cent, indicating decreased volatility in the Indian market.
By midday, the top gaining stocks that lifted Nifty 50 higher are Infosys (+31.32 pts), Bharti Airtel (+19.6 pts), and Axis Bank (+16.27 pts). On the other hand, Hindalco Industries (-1.34 pts), Trent (-1.96 pts), and Power Grid Corporation of India (-2.71 pts) were dragging the index down.
On Tuesday, overall market breadth remained positive, as 2,172 stocks advanced while 474 declined. The Nifty Mid-cap 100 and Nifty Small-cap 100 indices were trading in green, where Nifty Mid-caps were up by 1.75 per cent, and Nifty Small-cap was up by 1.88 per cent
On the sectoral front, all sectors recorded gains, with Nifty Consumer Durables, up more than 2.5 per cent, being the top-gaining sector.
Market Update at 10:15 AM: Indian benchmark indices opened on a strong note Tuesday, mirroring a broader rebound across Asia, as optimism grew that the United States might soften its stance on aggressive tariffs.
The Nifty 50 climbed 1.85 per cent to 22,566, while the Sensex advanced 1.64 per cent to 74,304.02 by 9:15 a.m. IST. Asian equities also recovered from 18-month lows, and U.S. stock futures were trading higher, signalling improved sentiment.
At the opening bell, all 13 major sectoral indices in India were in positive territory, with small-cap and mid-cap indices rising sharply by 1.77 per cent and 1.55 per cent, respectively.
This recovery comes after a sharp decline on Monday, when the Nifty and Sensex plunged 3.2 per cent and 3 per cent, their steepest one-day fall in the last 10 months, amid concerns that escalating U.S. tariffs could trigger a global economic slowdown.
Despite the selloff, Indian markets held up better compared to broader Asian markets, which had slumped by 8.4 per cent.
The total market value of all NSE-listed companies has fallen by USD 280 billion in three sessions since the announcement of U.S. tariffs.
About 2,191 stocks are advancing as against 449 stocks that are declining, thus indicating a Positive market breadth in the broader market.
Pre-Market Update at 7:30 AM: Domestic equity benchmarks, Sensex and Nifty 50, are likely to start on a positive note on Tuesday, recovering from the sharp losses seen in the previous session. Asian markets witnessed strong gains, while Wall Street had a mixed closing, with the Nasdaq Composite managing to end higher.
Gift Nifty was hovering near the 22,650 mark, reflecting a premium of about 386 points over the previous close of Nifty futures, suggesting a strong and positive opening for the Indian stock market indices.
US stock markets closed mixed on Monday as concerns grew over a potential economic slowdown and rising inflation, fueled by President Donald Trump’s tariff policies and his renewed threats of additional tariffs on Chinese goods.
The Dow Jones Industrial Average tumbled 349.26 points, or 0.91 per cent, ending the session at 37,965.60. The S&P 500 slipped 11.83 points, or 0.23 per cent, to settle at 5,062.25. In contrast, the Nasdaq Composite edged up 15.48 points, or 0.10 per cent, finishing at 15,603.26.
President Trump warned that the US could impose an additional 50 per cent tariff on Chinese imports if China does not withdraw its retaliatory tariffs against US goods by April 8, 2025. He also stated that ongoing discussions with Chinese officials regarding future meetings would be suspended.
China’s Ministry of Commerce strongly opposed the US threat, criticising it as "blackmail" and promising firm countermeasures to defend its interests. A spokesperson described the US approach as “a mistake on top of a mistake” and called for resolving disputes through dialogue, emphasising equality and mutual respect.
Meanwhile, the People's Bank of China announced its backing for sovereign wealth fund Central Huijin Investment’s efforts to boost its holdings in stock market index funds. The central bank also expressed its willingness to offer re-lending support to Central Huijin when necessary to ensure the stability of China’s capital markets.
Crude oil prices bounced back sharply, climbing over 1 per cent after a steep decline in recent sessions. Brent crude rose by 1.26 per cent to USD 65.02 a barrel, while US West Texas Intermediate (WTI) crude advanced 1.52 per cent to settle at USD 61.61 per barrel.
Asian markets showed strong recovery on Tuesday, erasing some of their previous losses. Japan’s Nikkei 225 jumped 5.34 per cent, and the broader Topix index surged 5.53 per cent. In South Korea, the Kospi gained 2.26 per cent and the Kosdaq moved up by 2.35 per cent. However, futures indicated that Hong Kong’s Hang Seng index might see a softer start.
Meanwhile, on Monday, Indian equity markets witnessed a sharp selloff, recording their steepest single-day fall in nearly 10 months. Investor sentiment was hit by concerns over the potential economic impact of a global trade war sparked by US President Donald Trump’s aggressive tariff moves. The Sensex plummeted 2,226.79 points, or 2.95 per cent, to close at 73,137.90, while the Nifty 50 dropped 742.85 points, or 3.24 per cent, ending at 22,161.60.
On April 07, 2025, foreign institutional investors (FII) sold shares worth Rs 9,040.01 crore, while domestic institutional investors (DII) bought shares worth Rs 12,122.45 crore.
Stocks that are banned for trading in the F&O segment on April 08, 2025, are Birlasoft Ltd, Hindustan Copper Ltd and Manappuram Finance Ltd.
Disclaimer: The article is for informational purposes only and not investment advice.