Stock Market Rebounds on Fading Trade Tensions Fears
India’s benchmark stock market indices, Sensex and Nifty50, staged a strong rebound on Thursday, erasing early losses. By 12:33 pm, Sensex climbed 1003.63 points to 78,047.92, while Nifty50 rose 274.60 points to 23,711.80.
Key Factors Behind the Rebound:
- Fading Trade Tensions Fears: Dalal Street shook off jitters from Donald Trump’s April 2 tariff announcement. India emerged as the only major market to erase all losses from that day.
- Renewed Foreign Investor Interest: Foreign Institutional Investors (FIIs) turned net buyers on Wednesday. They poured in nearly Rs 3,936 crore. This pushed the total weekly inflow past Rs 10,000 crore.
- Domestic Positives: Expectations of a strong monsoon boosted the market’s upward momentum. Crude prices are softening near $61 a barrel. Inflation hitting a five-year low also contributed to this trend.
Sector Performance:
- IT Sector Under Pressure: Shares of top tech companies are declining. This follows Wipro’s issuance of tepid guidance for FY26. The guidance has raised questions about future growth in the export-heavy space.
- Infosys Q4FY25 Results: Investors await clarity on Infosys’ outlook, especially amid a challenging global demand environment.
Expert Insights:
- “India’s recent outperformance is striking,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “We are the only large market which has erased all losses incurred after April 2 and closed above pre-announcement levels.”
- “FIIs are likely to continue buying into high-quality largecaps in domestic consumption themes,” Vijayakumar added.
