Sensex mirrors Asian peers, climbs 1,089 points to end 3-day losing streak

From the sectoral front, the Nifty PSU Bank index added 2.6 per cent ahead of the announcement of the policy decision by the RBI's MPC scheduled for tomorrow, April 8, 2025

Stock market closing bell, Tuesday, April 8, 2025: Indian equity markets showed a sharp recovery to snap their 3-day losing streak and settled higher on Tuesday. The recovery in the markets came from a technical pullback, as well as favorable sentiment among Asian markets, led by Japan's Nikkei 225, which ended higher by 6.03 per cent. Meanwhile, in the US, Dow futures were trading nearly 2 per cent higher, indicating relief among investors.

 

On Tuesday, the Sensex settled 1,089 points, or 1.49 per cent, higher at 74,227 levels. Barring Power Grid Corporation, all the other constituents of the Sensex ended higher, led by Titan, Bajaj Finance, Larsen & Toubro, State Bank of India, and Axis Bank, which ended higher by up to 3.29 per cent.

 

 

The Nifty50, on the other hand, ended at 22,535 levels, higher by 374 points, or 1.69 per cent, from its previous close. The benchmark had notably logged its biggest single-day fall in 10 months on Monday, April 6.

 

This was the first time that the benchmarks closed higher following the reciprocal tariff announcements by US President Donald Trump on its trading partner countries, which had raised concerns over a recession in the US economy amid higher inflation and slower economic growth.

 

Positive global market cues, Prashanth Tapse, senior VP (Research), Mehta Equities, said, aided a massive recovery in local benchmarks, as concerns over US trade tariffs faded a bit on hopes that most nations would work out ways to overcome the challenge. "With India largely being a consumption-led economy, the US tariff impact may not hurt the country in a major way when compared to some of the other nations,” Tapse said.

 

That said, buying was seen among the broader basket as well, with the Nifty Midcap100 and Nifty Smallcap100 indices settling higher by 2.11 per cent and 2.13 per cent, respectively.

 

From the sectoral front, the Nifty PSU Bank index added 2.6 per cent ahead of the announcement of the policy decision by the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), scheduled for tomorrow, April 8, 2025.

 

Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services, said that the RBI is expected to cut interest rates by 25 basis points. Additionally, the decline in the 10-year bond yield to a two-year low, coupled with strong quarterly business updates from some of the PSU banks, should augur well for these stocks.

 

Among other sectoral indices, Nifty consumer durables, oil & gas, select financial services, and realty indices ended with gains of over 2 per cent. Other sectoral indices on the NSE also settled higher with gains ranging from 1.27 per cent to 4.72 per cent.

 

Khemka expects the market to remain volatile until things become clearer on the US tariff front, while stock-specific action will continue on the back of upcoming Q4 earnings and management guidance. 

 

"We suggest investors avoid globally exposed sectors like IT, pharma, and metals, and instead focus on domestic economy-linked stocks, as they are likely to offer relative stability in the current uncertain environment," Khemka said. 

Nifty50 technical view

Commenting on the technical outlook for the Nifty50, Nagaraj Shetti, senior technical research analyst, HDFC Securities, said, "A reasonable positive candle was formed on the daily chart with long upper and lower shadows. Technically, this market action signals the formation of a high-wave type candle pattern, which indicates ongoing high volatility in the market." 

 

The recent sharp opening downside gap on Monday has been challenged and partially filled. According to the gap theory, the said down gap could be considered a bullish exhaustion gap and is likely to be filled soon, around 22,850 levels on the higher side. "Normally, bullish exhaustion gaps are more often associated with important bottom reversals. Immediate support is placed at 22,270," Shetti said. 

Meanwhile, for day traders, Shrikant Chouhan, head of equity research at Kotak Securities, said that 22,330 would be a key level to watch. Above this level, a pullback wave could move up to 22,700, with further upside potentially lifting the index to 22,800. Conversely, a dismissal of 22,330, he believes, could accelerate selling pressure. If this level is breached, the market could retest 22,110-22,000. 

 

"The current market texture is extremely volatile and uncertain; thus, a level-based trading strategy would be ideal for day traders," Chouhan said.