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The BSE Sensex surged 1,750.37 points to 76,907.63 and the NSE Nifty jumped 539.8 points to 23,368.35 in the opening trade on Tuesday, April 15.
While the bulls seem to hold the current momentum, intraday volatility and profit booking near resistance zones remain likely, say experts.
The Indian stock markets on Tuesday saw an impressive gap-up after a long weekend, with the BSE Sensex surging 1,750.37 points to 76,907.63 and the NSE Nifty jumping 539.8 points to 23,368.35 in the opening trade on Tuesday, April 15. Realty, auto, financials, metal and media are the top gains today. Investors have gained more than Rs 9 lakh crore on Tuesday after the stock market surge.
Market volatility has eased, as the India VIX dropped by 17 per cent to 16.67, indicating significantly reduced fear after a recent spike.
Why Is Sensex Rising Today?
Strong Global Cues: The domestic equity markets saw a gap-up opening on Tuesday by around 500 points even as the global stock markets have witnessed sharp upmove in the past two days. With the Dow Jones rising by around 1,000 since Friday. The S&P 500 is also up by 9 per cent from its April lows, on the 90-day tariff pause. The Asian markets, including Nikkei, Hang Seng and Kospi, were also trading higher by up to 1.14%, 0.19%, and 1.04% on Tuesday.
Fall In Dollar Below 100: The fall in dollar to below the 100 mark or its two-year low level is expected to nudge FIIs to invest in India amid falling US assets, including bond yields and currency.
Trump’s 90-Day Pause On Tariffs, Negotiations: US President Donald Trump’s recent announcement on 90-day reciprocal tariff pause has boosted market sentiments. Apart from this, Trump’s commentary to extend help to the auto companies has also improved sentiments. Though 25% auto tariffs stay, the commentary has provided positive sentiments.
Avinash Gorakshkar, head of research at Profitmart Securities, said there is a buss in the markets that trade negotiations will take place and some breakthrough is expected.
Short Covering: As the markets recently provided significant opportunities on the short side amid its sharp declines, the positive Trump’s commentary and improved sentiments in the global markets have led investors to cover their short positions or unwind their long positions, according to analsyts.
“The S&P 500 is up by 9 per cent from the April lows, on the tariff pause. Since Nifty is up only 3% from the April lows we have some catching up to do. This catching up and some short-covering will keep the market strong for the day,” V K Vijayakumar, chief investment strategist of Geojit Investments Ltd.
What’s Next?
Vijayakumar said that investors have to understand that the uncertainty triggered by Trump is very much alive and, perhaps, more uncertainty is likely to come with sectoral tariffs, which Trump has declared are going to come. The Indian pharmaceutical sector may again come under pressure from this renewed threat. Even though the bond market has reined-in Trump who was on a rampage, he is unlikely to backtrack on tariffs.
“During this period of heightened uncertainty and potential volatility it would be better for investors to focus on strong domestic consumption sectors like financials, telecom, aviation, hotels, hospitals and selectively on autos,” he added.
Choice Broking in its note said the Nifty charts indicate strong support at 23,000, followed by 22,900 and 22,800. On the upside, 23,200 acts as the immediate resistance, followed by 23,360 and 23,500.
“Overall, while the bulls seem to hold the current momentum, intraday volatility and profit booking near resistance zones remain likely. Traders are advised to remain cautious near upper resistance levels and consider buying on dips toward key support zones,” it added.
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