The Indian stock market opened with a robust gap-up in morning trade today, resuming activity after a holiday-extended weekend due to Ambedkar Jayanti on April 14. The benchmark indices, BSE Sensex and NSE Nifty50, recorded significant gains, driven by positive global cues and renewed investor optimism following the U.S. announcement of a 90-day pause on additional tariffs.
At 10:00 AM IST, the BSE Sensex soared by over 1,200 points, or 1.6%, to trade at approximately 76,836. Meanwhile, the Nifty50 surged by around 540 points, or 2.36%, hovering near the 23,368 mark. The bullish sentiment was further reflected in the broader markets, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising by 1.8% and 2.1%, respectively.
Sectoral Performance and Key Drivers
The rally was broad-based, with metal, auto, and pharma sectors leading the charge. The Nifty Metal index jumped over 3%, fueled by strong performances from Hindalco Industries (up 5.5%) and Tata Steel (up 4.8%), buoyed by positive global commodity price trends. The Nifty Auto index gained 2.5%, with Tata Motors and Mahindra & Mahindra advancing by 3% each, supported by expectations of robust domestic demand. Pharma stocks also shone, with the Nifty Pharma index up 2.2%, led by Sun Pharma and Cipla.
Banking stocks contributed significantly to the upswing, with the Nifty Bank index climbing 2.5% to around 52,299. Heavyweights like HDFC Bank and ICICI Bank rose by 2-3%, reflecting confidence in the financial sector amid stable domestic macroeconomic indicators.
Market analysts attributed the morning surge to positive global developments, particularly the U.S. tariff pause, which alleviated fears of a global trade war. Additionally, strong performances in U.S. markets overnight, with the Dow Jones Industrial Average rising 1.56% and the Nasdaq Composite gaining 2.06%, set an optimistic tone for Indian equities.
Technical Outlook and Investor Sentiment
Technical analysts noted that the Nifty50’s break above the 23,300 level signaled a bullish short-term trend, with support levels now seen at 23,000 and resistance near 23,500. “The gap-up opening reflects strong buying interest. Investors are adopting a buy-on-dips strategy, supported by positive global cues,” said Dharmesh Shah, Vice President at ICICI Securities.
The advance-decline ratio favored buyers, with over 1,800 stocks advancing compared to 600 declining on the NSE. GIFT Nifty futures, an early indicator, had signaled a strong start, trading above 23,290 in pre-market hours.
Stocks in Focus
Among individual stocks, Tata Power and NHPC were in the spotlight due to positive brokerage upgrades, each gaining over 3%. Hindustan Aeronautics Limited (HAL) also rose 2.8% amid reports of potential defense sector orders. On the flip side, select IT stocks like TCS and Infosys lagged, trading flat as investors awaited clarity on Q4 earnings amid global trade uncertainties.
Market Context and Upcoming Triggers
The market’s strong start comes after a volatile period marked by global recession fears and trade policy uncertainties. With two holidays in April—April 10 (Mahavir Jayanti) and April 14 (Ambedkar Jayanti)—this week is truncated, with another closure scheduled for Good Friday on April 18. Investors are closely monitoring upcoming Q4 earnings from major firms like HDFC Bank, ICICI Bank, and Infosys, alongside retail inflation data and foreign fund flows, which could influence market direction.
Foreign portfolio investors (FPIs) have been net sellers in April, withdrawing ₹31,575 crore, but domestic institutional investors have countered with net purchases, supporting market resilience. The Indian rupee appreciated marginally to 85.95 against the U.S. dollar, aiding sentiment.
As the trading session progresses, market participants remain cautiously optimistic, with global trade developments and corporate earnings likely to dictate near-term trends.