Sensex jumps 1,250 pts, Nifty tops 22,550 despite Trump, China war of words; here's why
The BSE Sensex was trading at 74,388.56, up 1,250.66 points or 1.71 per cent. The NSE Nifty was trading at 22,527.20, up 365.60 points or 1.65 per cent.
- Apr 8, 2025,
- Updated Apr 8, 2025 9:36 AM IST
Benchmark stock indices Sensex and Nifty on Tuesday, recovered some lost ground nearly 5 per cent in the past three sessions. The stock market gained, even as US President Donald Trump threatened to impose additional 50 per cent tariffs on China, if the reciprocal measures by the latter are not removed immediately. China, on the other hand, vowed to fight 'till the end', in a signal the tariff war is set to intensify between the two largest economies.
This does suggest that the trade war is likely to be confined to US and China, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He noted that the EU and Japan have opted for negotiations and India has already in talks on a BTA with the US.
"The risk of a recession in the US has increased. China is likely to be the worst-hit economy. Trump’s threat of another 50 per cent tariff on China will, if carried out, almost freeze Chinese exports to US," he said.
The BSE Sensex was trading at 74,388.56, up 1,250.66 points or 1.71 per cent. The NSE Nifty was trading at 22,527.20, up 365.60 points or 1.65 per cent. Midcap and smallcap indices were up 1.6-2 per cent.
Sensex constituent Titan Company Ltd climbed 5.23 per cent to Rs 3,181. Adani Ports, Bajaj Finserv, State Bank of India, Axis Bank and UltraTech Cement gained over 3 per cent each. Larsen & Toubro, Tata Steel, Tata Motors and Bajaj Finance gained 2-5-3 per cent. TCS was the only Sensex loser, falling 0.2 per cent to Rs 3,269.
The benchmark indices had fallen 3 per cent in the previous session, Monday, due to global selloff. On October 19, 1987 also, global financial markets endured one of the worst single-day crashes in history, which was dubbed as 'Black Monday'.
Traders are also watching for the RBI’s potential 25 basis points rate cut on April 9 and corporate earnings led by TCS on April 10, said Prashanth Tapse of Mehta Equities.
Nuvama said the market should brace for volatility and investors should focus on capital preservation. Earnings yield minus bond yield (average of US and India 10-year bond yield) is a good guide for inflection point.
"Typically, during risk-off, equities tend to undershoot sharply (1SD cheap). Today, equities are still 1SD expensive compared with bonds," Nuvama said.
Benchmark stock indices Sensex and Nifty on Tuesday, recovered some lost ground nearly 5 per cent in the past three sessions. The stock market gained, even as US President Donald Trump threatened to impose additional 50 per cent tariffs on China, if the reciprocal measures by the latter are not removed immediately. China, on the other hand, vowed to fight 'till the end', in a signal the tariff war is set to intensify between the two largest economies.
This does suggest that the trade war is likely to be confined to US and China, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He noted that the EU and Japan have opted for negotiations and India has already in talks on a BTA with the US.
"The risk of a recession in the US has increased. China is likely to be the worst-hit economy. Trump’s threat of another 50 per cent tariff on China will, if carried out, almost freeze Chinese exports to US," he said.
The BSE Sensex was trading at 74,388.56, up 1,250.66 points or 1.71 per cent. The NSE Nifty was trading at 22,527.20, up 365.60 points or 1.65 per cent. Midcap and smallcap indices were up 1.6-2 per cent.
Sensex constituent Titan Company Ltd climbed 5.23 per cent to Rs 3,181. Adani Ports, Bajaj Finserv, State Bank of India, Axis Bank and UltraTech Cement gained over 3 per cent each. Larsen & Toubro, Tata Steel, Tata Motors and Bajaj Finance gained 2-5-3 per cent. TCS was the only Sensex loser, falling 0.2 per cent to Rs 3,269.
The benchmark indices had fallen 3 per cent in the previous session, Monday, due to global selloff. On October 19, 1987 also, global financial markets endured one of the worst single-day crashes in history, which was dubbed as 'Black Monday'.
Traders are also watching for the RBI’s potential 25 basis points rate cut on April 9 and corporate earnings led by TCS on April 10, said Prashanth Tapse of Mehta Equities.
Nuvama said the market should brace for volatility and investors should focus on capital preservation. Earnings yield minus bond yield (average of US and India 10-year bond yield) is a good guide for inflection point.
"Typically, during risk-off, equities tend to undershoot sharply (1SD cheap). Today, equities are still 1SD expensive compared with bonds," Nuvama said.