India’s equity benchmark indices Sensex and Nifty surged in early trade on Wednesday, recovering from a prolonged losing streak as value buying emerged at lower levels.
Market Overview: Sensex and Nifty Gain Momentum
The BSE Sensex climbed 564.80 points or 0.77 percent, reaching 73,554.73 in the morning session, while the NSE Nifty gained 176.65 points or 0.8 percent, rising to 22,259.30.
Market analysts noted that domestic equities had been highly oversold and were due for a technical bounce-back. The sharp sell-off in recent sessions had prompted investors to hunt for value opportunities, leading to Wednesday’s recovery.
Top Gainers and Losers
Among the top performers in the Sensex pack, leading the gains were:
- Tata Steel
- Mahindra & Mahindra
- HCL Technologies
- Tech Mahindra
- Adani Ports
- Tata Motors
- Power Grid
- NTPC
- Infosys
- TCS
- Bharti Airtel
Meanwhile, stocks that underperformed included Bajaj Finance, Bajaj Finserv, UltraTech Cement, and HDFC Bank.
Asian Markets and Global Cues
The rally in Asian stock markets further fueled optimism in Indian equities. Tokyo, Shanghai, Hong Kong, and Seoul witnessed strong buying interest, recovering from earlier losses driven by global trade concerns.
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Despite Wednesday’s rally, US markets ended lower on Tuesday, with the S&P 500 suffering its worst day of the year after President Donald Trump confirmed fresh tariffs on major trade partners including Canada, Mexico, and China.
Trade War Tensions and Tariff Relief Signals
Trump’s new trade measures have rattled global markets, prompting immediate backlash from Mexico, Canada, and China. However, US Commerce Secretary Howard Lutnick hinted at potential tariff negotiations, stating that a compromise could be announced as early as Wednesday.
Trump also reiterated his longstanding criticism of India’s trade policies, labeling its high tariffs as “very unfair” and confirming that reciprocal tariffs would take effect from April 2. This policy aims to impose the same tariff rates on imports from countries that charge higher tariffs on U.S. exports.
Market Outlook: What’s Next?
Despite the recent slump, analysts suggest that the Nifty remains highly oversold, making it ripe for a short-term recovery. Small-cap stocks, which saw heavy selling pressure in previous sessions, witnessed a sharp bounce, while mid-cap stocks recorded mild gains.
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Foreign Institutional Investors (FIIs), however, remained net sellers, offloading equities worth Rs 3,405.82 crore on Tuesday, as per exchange data.
Meanwhile, in the commodities market, Brent crude oil prices declined 0.34% to USD 70.80 per barrel, offering some relief to energy-intensive industries.
