Indian stock markets made a strong recovery on Tuesday, with Sensex jumping more than 1,750 points and Nifty crossing the 22,300 mark. This big rally helped investors become richer by ₹10.9 lakh crore in just one day. It was one of the biggest single-day gains seen in the past few months.
After a weak performance due to global worries like US tariffs, the markets bounced back sharply. Since April 2, both Sensex and Nifty have now posted gains of 0.3% and 0.6% respectively, and the total market value has increased by over ₹78,000 crore since then.
The sudden rise in markets was mainly due to a positive update from the US. The American government said it would delay tariff hikes on most countries (except China) for 90 days. This move improved the global mood and supported Indian stocks, especially companies that benefit from the ‘China Plus One’ strategy. On NSE, nearly seven stocks rose for every one that fell.
All the 13 sectors on the NSE closed in the positive zone. Financial stocks, which account for the maximum weight in the index, rallied by more than 2%. Smallcap and midcap stocks also advanced by more than 3% individually, overcoming their weak trend of late.
Domestic investors were major contributors to this upsurge. Dealers explained that institutional investors were active buyers during the day, reflecting strong confidence in the India growth story.
Global forces also underpinned the rally. A falling US dollar and stable bond yields lifted investors’ confidence in Asia. India’s market also picked up even more when it returned from a long holiday weekend.
Strong Indian economic standing also helps. With high demand at home and minimal exposure to the US-China tussle, India remains a destination of choice for investors. Although foreign investment figures for the day are pending, some market players reported high foreign buying on the day.
With markets recovering the recent slump, investors will then look at the forthcoming earnings period and cues from the global central banks. This sharp rebound, analysts say, doesn’t mean there will be a sustained boom, but so far, India’s market is reflecting robust confidence in the growth trajectory of the country.
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Source: Moneycontrol.
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