Sensex rises 200+ pts, Nifty holds above 23,200 after sharp Tuesday fall
The Indian stock market experienced modest gains on April 2, 2025, as investors cautiously navigated global trade uncertainties and anticipated policy shifts. After significant losses in the previous session, both the BSE Sensex and NSE Nifty 50 indices opened higher, reflecting a tentative recovery amid ongoing concerns.
Market Performance
The BSE Sensex commenced trading with an increase of over 200 points, opening at 76,199.97, marking a 0.23% rise. Simultaneously, the NSE Nifty 50 edged up by 36 points, reaching 23,201.30, a gain of 0.15%. These upticks followed a sharp decline on April 1, where the Sensex plummeted by 1,390.41 points (1.80%) to close at 76,024.51, and the Nifty 50 dropped 353.65 points (1.50%) to settle at 23,165.70.
Sectoral Insights
In early trading, eleven of the thirteen major sectors recorded marginal gains. The broader small-cap and mid-cap indices also saw modest increases of about 0.2% each. Despite these positive movements, investor sentiment remained cautious due to anticipated announcements from U.S. President Donald Trump regarding new tariffs, which could escalate global trade tensions.
Investor Sentiment and Foreign Investment
Foreign Institutional Investors (FIIs) were net sellers, offloading Indian equities worth ₹5,901.63 crore on April 1. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing shares valued at ₹4,322.58 crore. This dynamic indicates a cautious approach by foreign investors amid global uncertainties, while domestic investors sought opportunities in the market downturn.
Global Influences and Trade Policies
The market’s cautious optimism was tempered by the anticipation of U.S. “reciprocal tariffs,” set to be announced by President Trump. These tariffs are expected to impact multiple countries, including India, potentially affecting various sectors and leading to increased market volatility. Investors remained vigilant, awaiting further clarity on the scope and implications of these trade measures.
Currency and Commodities
The Indian Rupee opened weaker, depreciating by 21 paise to 85.68 against the U.S. dollar, reflecting concerns over the impending tariff announcements and their potential impact on trade balances. In the commodities market, gold prices held steady, with investors viewing the precious metal as a safe-haven asset amid geopolitical uncertainties.
Technical Analysis and Market Outlook
Technical analysts observed that the Nifty 50 tested the 23,141 level, completing a 38.2% retracement of its recent rise from 21,964 to 23,869. A sustained move below this level could lead to further declines towards the next support at 22,917. Conversely, maintaining levels above 23,141 may signal consolidation and potential recovery.
On April 2, 2025, the Indian stock market exhibited resilience with modest gains following significant losses in the prior session. While early trading showed positive movements across major indices and sectors, underlying caution persisted due to global trade uncertainties and anticipated U.S. tariff announcements. Investors are advised to remain vigilant, considering both domestic economic indicators and international developments that could influence market trajectories in the coming days.
