Indian stock markets opened sharply higher on Friday after the U.S. suspended additional 26% tariffs on India for 90 days, providing temporary relief to investors amid ongoing global trade tensions.
Market Snapshot (Early Trade, April 12, 2024)
| Index | Points Change | % Gain | Level |
|---|---|---|---|
| Sensex | +1,400 | 1.90% | 75,247 |
| Nifty50 | +441 | 1.97% | 22,840 |
| BSE Market Cap | +₹6.97 lakh crore | Total: ₹400.79 lakh crore |
Why Did Markets Rally?
- U.S. suspends tariffs on India until July 9, 2024, easing trade war fears.
- Global relief rally after Trump softened tariffs on some nations (excluding China).
- Strong sectoral performance – Pharma, Metals, Auto, and Financials led gains.
Sectoral & Stock-Wise Performance
Top Gainers (Sensex)
| Stock | % Gain |
|---|---|
| Tata Motors | 4.5% |
| Sun Pharma | 4.2% |
| Tata Steel | 3.8% |
| Tech Mahindra | 3.5% |
Key Sectoral Moves
- Nifty Pharma (+3.2%) – Sun Pharma, Dr. Reddy’s surge.
- Nifty Metal (+3.5%) – Tata Steel, JSW Steel rally.
- Nifty Auto (+2.3%) – Tata Motors, Maruti lead.
TCS Drags IT Sector
- TCS fell 1.2% after Q4 profit missed estimates (₹12,224 cr vs. ₹12,650 cr expected).
- Infosys & HCL Tech up 1-2%, limiting IT sector losses.
Expert Analysis: Will the Rally Last?
1. Geopolitical Uncertainty Remains
- Trump’s tariff rollback is temporary (90 days).
- China still faces 104% tariffs, keeping global markets volatile.
2. Bond Market Pressure Forced U.S. Retreat
“The U.S. bond market sell-off (10-year yield at 4.5%) forced Trump to ease tariffs. This rally may not sustain as global risks persist.”
– Dr. V.K. Vijayakumar, Geojit Financial Services
3. Technical Levels to Watch (Nifty50)
| Support Levels | Resistance Levels |
|---|---|
| 22,300 | 22,550 |
| 22,200 | 22,750 |
| 22,000 | 23,000 |
“Markets may consolidate after the gap-up opening. 22,550 is the key resistance.”
– Hardik Matalia, Choice Broking
Global Markets Update: Recession Fears Linger
Asian Markets Mixed
- Nikkei (-4.5%) – Worst performer due to yen strength.
- Kospi (-1.7%) – Trade war fears weigh.
- Shanghai Composite (+0.3%) – Mild recovery after yuan stabilizes.
Safe-Haven Demand Rises
- Gold hits record highs as investors seek safety.
- Swiss Franc surges to 10-year high vs. USD.
Final Verdict: Should Investors Buy or Wait?
✅ Short-term relief rally likely, but volatility will persist.
✅ Pharma, Metals, and Financials are strong bets.
⚠️ IT sector cautious due to TCS earnings miss.
⚠️ Global recession risks could trigger another sell-off.
Bottom Line: While India’s strong macros provide support, trade war risks and bond market turmoil mean investors should stay selective.
