Sensex rockets past 76,700, Nifty smashes 23,300 as global tariff pause sparks a rally
On April 15, 2025, the Indian stock market soared higher, and the benchmark indices rallied to fresh all-time highs. Sensex and Nifty 50 saw significant gains, catalyzed by global cues after the U.S. administration announced a temporary exemption on tariffs for electronics and automotive imports. The market is on the forefront with strong momentum from auto, financials, and metals.
Market Overview
ICICI direct at mid-day session:
- BSE Sensex at 76,743.57, up over 1,586 points or 2.11%.
- NSE Nifty 50 has crossed the 23,300 mark and is currently at 23,315.45, up by 486.90 points or 2.13%.
- Nifty Midcap 100 is up by 1.97%.
- Nifty Smallcap 100 up by 2.57%.
Twelve sectoral indices traded in the green, highlighting strong buying interest across the board.
Key Drivers for the Rally
Global Tariff Pause
The U.S. government announced a 90-day pause in tariffs on consumer electronics and auto imports, improving the global risk sentiment immensely. This increased optimism surrounding supply-chain disruptions and inflationary pressures, leading to a massive rally in global equity markets, including India.
Auto Sector Outperformance
Auto sector stocks lead the gains on expectations for reduced trade pressure that may benefit both exports and input costs:
- Samvardhana Motherson 7.7% up;
- Bharat Forge up 6% close;
- Sona BLW up 7.3%;
- Tata Motors up 5%;
Nifty Auto index up over 3% in its strongest session for months.
Financial Sector Strength
- Heavyweights in the financial space provide strong support to the benchmarks:
- HDFC Bank 4% up, post 25 bps cut in savings deposit rates;
- ICICI Bank up by 3%;
- State Bank of India (SBI) up 2% after announcing a cut in lending rates by 25 bps.
The Nifty Financial Services index rose more than 2.2%, indicating demand for rate-sensitive sectors.
Other Key Movers
Tata Power jumped by 4.4% after its renewable energy division secured an order worth ₹4,500 crore from NTPC, giving bullish momentum to the power sector.
Transrail Lighting surged 8% on securing fresh domestic orders valued at around ₹1,085 crore.
Sula Vineyards gained 2.4%, after presenting strong Q4FY25 sales numbers.
Energy, capital goods, and FMCG stocks are supporting the outright bullish sentiment, with increased buying activity from retail and institutional investors alike.
Currency and Commodity Markets
The Indian rupee strengthened 17 paise to trade at 85.87 against the U.S. dollar as improvement in risk sentiment and easing of the dollar index was observed.
Gold relaxed by ₹10; 24-karat gold is trading at ₹95,500 per 10 grams.
Silver’s price also declined by ₹100 to ₹99,800 for one kilogram only in correspondence with the international market.
Technical View and Market Sentiment
As Nifty sustains above the all-important 23,000 mark, technical indicators hold promise for continued strength in the short term. A decisive close above 23,400 makes it possible to open to near 23,800-24,000. High activity in banking, auto, and midcap stocks with closely monitored volumes remains for traders.
The mood of the investor turns quite too positive as fears of new tariffs fade away, for the meantime. Yet there is wary optimism since policymakers in the U.S. are hinting at possible sector-specific measures to include those related to semiconductor and tech imports in the months to come.
Sectoral Highlights
- Automobiles-Supporting expectations for lower import costs and exports, the best-performing sector for the day.
- Banking and Financial Services-Positive rate action by leading banks, and with a strong credit growth data, the sector gets further reassurance regarding viability.
- Metals-Global metal prices rise, while local producers benefit from a most optimistic outlook, waking up stocks of Hindalco and Tata Steel.
- IT and Pharma-Trade muted, exhibiting limited movement as investors rotate toward more cyclically sensitive sectors.
Rally from the Midcap and Smallcap
Outperform benchmark indices in Midcap and Smallcap, led by stocks in infrastructure, defense, and power equipment. Improved retail participation coupled with bull sentiment of domestic mutual funds propelled the rally.
IPO Accrues and Market Breadth
Strong listing gains are recorded by a number of small-cap IPOs today. Bullish sentiments by retail investors towards risk invite strong listing growth in the small-cap IPOs. The market breadth structurally remains positive with almost four stocks rallying to one declining on the NSE.
Outlook
Market analysts say the outlook is favorably bullish even as global calls would provide support. However, the market focus has now shifted toward corporate earnings announcements set to take place in this week, which will indicate the margin pressure on some sectors and forward guidance. Other important data in view include inflation data and updates on U.S. trade policy.
Key levels monitored by investors and traders include the Nifty and Sensex. Although the technical indicators are showing overbought conditions in some stocks, immediate signs of reversal are not available. Defensive plays under FMCG and healthcare may get some rotation buying in case volatility returns.
April 15, 2025-a strong trading session for Indian equities, as key indices scaled fresh highs. Factors like the new highs in domestic sectoral performance on one hand combine with positive global developments like the temporary pause in U.S. tariffs on the other and buoy optimism. Auto and banking stocks lead the charge, while broader market participation and favorable technical metrics indicate continued bullish sentiment. Earnings and policy cues are awaited by market watchers to judge the endurance of the current rally.
