Sensex, Nifty 50 extend relief rally to third straight session, gain up to 0.5%; bank stocks top contributors

Stock market today: Indian stock market extended its winning streak for the third consecutive trading session on Wednesday, April 16, outperforming most Asian peers, which ended lower as trade tensions between China and the U.S. escalated further.

Most of today's market rally was led by banks, as investor expectations grew that the Indian central bank may announce another rate cut following a multi-year low in retail inflation in March. PSU banks outperformed their private-sector counterparts, while the IMD’s forecast of an above-normal monsoon in 2025 also helped bulls push the market higher despite weak global cues.

Apart from banking, FMCG and oil & gas stocks also supported the market, helping the Nifty 50 end 0.50% higher at 23,446 points, while the Sensex closed with a gain of 0.43% at 77,063 points. 

Broader markets continued to outperform frontline indices, with the Nifty Midcap 100 index ending the session 0.72% higher at 52,347 points, while the Nifty Smallcap 100 index rose 1.09%.

Among individual stocks, JBM Auto, Engineers India, Gujarat Mineral Development Corporation, NTPC Green Energy, Olectra Greentech, and 21 other Nifty 500 constituents ended the session with gains of over 4%.

On the global front, U.S. President Donald Trump raised tariffs on Chinese products by another 100%, taking the total to 245%, after Beijing ordered its airlines to halt further deliveries of Boeing Co. jets.

China last week imposed 125% tariffs on U.S. products and also stopped exports of critical minerals. China is the top global producer of 30 out of 50 minerals deemed critical by the U.S. Geological Survey and has been curtailing exports in recent months.

Meanwhile, the European Union and the U.S. struggled to bridge trade differences this week, with White House officials stating that most of the tariffs imposed on the bloc will remain. Meanwhile, Japan’s chief negotiator is set to visit Washington from April 16–18 to initiate formal trade talks.

Back home, India has opted for a path of trade liberalization with the United States, according to India’s trade secretary on Tuesday, as both countries signed terms of reference for the first phase of a bilateral trade agreement.

In Asian markets, shares in China and Hong Kong remained under pressure even after China reported stronger-than-expected GDP growth in the first quarter of 2025. However, the outlook remains bleak due to rising U.S. tariffs.

In another asset classes, the heightening trade tensions and continuing buying by the Central banks has led gold to touch another record high of $3316 per troy ounce in today's trading session, taking the 2025 gains to 26% so far. 

Sectoral Watch: PSU banks top gainers; auto stocks resume selling streak

Among the 13 major sectoral indices, the Nifty PSU Bank index emerged as the top gainer on Wednesday, ending the session with a 2.46% gain. The rally was driven by optimism over a potential rate cut by the RBI, which has already reduced the benchmark repo rate to 6% from 6.5% through two consecutive 25-basis-point cuts in recent monetary policy meetings.

Analysts now anticipate a pickup in credit growth across the financial system, supported by the RBI's dovish stance and the increase in the income tax exemption limit to ₹12 lakh, announced in the Union Budget 2025–26.

Other sectoral indices such as Nifty Media, Nifty Realty, Nifty FMCG, and Nifty Consumer Durables also ended in the green, posting gains in the range of 0.5% to 1.7%.

On the flip side, the Nifty Auto index slipped into the red after a one-day bounce, as trade tensions resurfaced following a brief period of relief. The index ended the session down 0.37%. The Nifty Pharma index also declined, closing the day 0.18% lower.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Investments, said, "Globally, markets are undergoing fresh consolidation as tariff tensions intensify, with the US increasing tariffs to 245% on Chinese goods. Amidst global weakness, the Indian market exhibited a mild positive sentiment in anticipation that the trade fight between the US & China will not harm but benefit India, and March's CPI inflation, which is at a 5-year low, is indicative of further rate cuts in the near future."

"Domestically, the Q4FY25 earnings season has started on a weak note. Overall expectations remain subdued, suggesting potential profit booking at higher levels," he further added.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty closed higher after initial weakness in the first half of the session. On the daily chart, the index has closed above the 100-EMA for the second consecutive session. Support is now placed at 23,300, and a positive sentiment is likely to prevail as long as it remains above this level. A decisive fall below 23,300 might trigger a correction towards 23,150/23,000. On the higher side, resistance is visible at 23,650."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.