Stock market today: Following positive sentiments after Donald Trump’s tariff pause for 90 days, the Indian stock market has experienced a participatory rally since early morning deals on Friday. Among the key benchmark indices, the Nifty 50 index opened upside at 22,695 and touched an intraday high of 22,923, logging an intraday gain of 524 points. Today, the BSE Sensex opened with a significant upside gain at 74,835 and touched an intraday high of 75,467, logging an intraday gain of over 1600 points. Today, The Bank Nifty opened with an upside gap of 50,634 and touched an intraday high of 51,244, registering an intraday gain of over 1,000 points. However, the question that needs to be answered is, will this rally sustain?
According to stock market experts, there is nothing wrong with the Indian fundamentals, but the global trigger has pressured Indian stocks. They said that the market is under severe pressure of inflation and economic recession. In that case, a one-day rally won’t be enough to establish a conclusion. They said the Nifty 50 index is facing a hurdle at the 22,900 mark, and a bull trend can be assumed only when the 50-stock index breaks above 23,200 levels on a closing basis. They said the Indian stock market can’t remain insulated from the escalating US-China trade war tension.
Trump’s tariff pause
Speaking on today’s rally in the Indian stock market, Sugandha Sachdeva, Founder of SS WealthStreet, said, “This rally is largely driven by the US President Donald Trump’s unexpected move to delay the imposition of hefty reciprocal tariffs on all trading partners (excluding China) by 90 days. However, tariffs on autos and metals will remain intact, and a universal 10% tariff will also stay in place.”
US-China trade war in focus
Pointing towards the escalating China-US trade war, Sugandha Sachdeva said, “The positive momentum lost steam on April 10 as Wall Street indices surrendered some of their gains amid intensifying trade tensions with China. In a retaliatory move, China raised tariffs on US imports to 84% from 34%, prompting President Trump to respond with a total tariff hike on Chinese goods to 145%. This escalating trade war is expected to create an economically uncertain global environment, adding volatility to financial markets worldwide.”
Investment strategy for Dalal Street investors
Unveiling stock market strategy for the Indian investors, Rahul Singh, CIO-Equities at Tata Asset Management, said, “The recent global tariff changes have added uncertainty to markets, but India is better positioned than before. The direct impact remains manageable with lower exposure to US trade and strong domestic demand. Falling global prices of crude and metals may support Indian companies by reducing input costs. Sectors like banking, pharma, and energy now offer attractive value with solid balance sheets.”
On the suggestion to equity mutual funds and other asset investors, Rahul Singh said, “As the market moves from global trends to company-specific opportunities, disciplined investing in large-cap, flexi-cap, and multi-asset funds, especially those with gold exposure, can help reduce portfolio risk. While short-term volatility may continue, India’s relative strength offers long-term confidence to investors.”
Stock market outlook
“The upside momentum in the Nifty 50 index is likely to face resistance in the 22,900 to 23,100 zone, limiting further gains. Investors should remain cautious as the evolving global trade landscape injects uncertainty into the markets,” said Sugandha Sachdeva of SS WealthStreet.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
