Stock market today: Nifty 50, Sensex bounce back ahead of looming reciprocal tariffs; realty stocks top gainers

Stock market today: Indian markets closed higher on Wednesday, April 2, rebounding from the previous session’s decline, which was the steepest in a month. A strong rally in financial stocks and a sharp recovery in the technology sector helped frontline indices post healthy gains today.

The Nifty 50 concluded the session with a gain of 0.72%, settling at 23,332 points, while the Sensex rose 0.78% to close at 76,617 points. The broader markets also regained strength, with the Nifty Mid-cap 100 index wrapping up at 52,025 points, a 1.61% jump compared to the previous close.

Likewise, the Nifty Small-cap 100 index ended with a solid gain of 1.12%, closing at 16,162 points.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Investments, said, "Despite mixed global cues surrounding the impending US tariffs, the domestic market experienced steady gains. This optimism was largely driven by expectations that the tariffs would have a minimal impact on the domestic economy, given the positive progress in India-US trade negotiations. Sentiments were further reinforced by India's manufacturing PMI for March, which reached an eight-month high, hinting at a recovery in Q4FY25 corporate earnings."

Sectoral Performance: All 13 major sectoral indices end in green

Amid a broad-based recovery in today’s session, all 13 major sectoral indices closed in the green, with Nifty Realty emerging as the top gainer, rallying 3.61%, followed by Nifty Consumer Durables and Nifty FMCG, which ended the session with gains of over 1%.

Other indices, including Nifty Auto, Nifty Pharma, Nifty IT, Nifty Metal, Nifty Media, and Nifty Oil & Gas, also ended the session with gains ranging between 0.2% and 0.8%.

Reciprocal tariffs in focus

Meanwhile, global investors remained focused on developments from the White House, as the long-anticipated announcement on reciprocal tariffs—covering the size, sectors, and countries affected—was expected later in the day, as promised by US President Donald Trump.

The White House stated on Tuesday that reciprocal tariffs would take effect immediately after Trump’s announcement, with a 25% tariff on auto imports set to take effect on April 3.

Ahead of the announcement, the latest assessment by the Office of the United States Trade Representative (USTR) indicated that India imposes steep tariffs and a range of regulatory barriers on US imports, particularly in sectors such as agriculture, pharmaceuticals, medical devices, and digital services.

Trump has repeatedly called India the “tariff king” for imposing high levies on US products. However, the Indian government has engaged in active discussions with the Trump administration in recent weeks, leading to speculation that India could avoid harsh tariffs on key exports, including agriculture.

Since assuming office in January, Trump has announced a series of duties on the US's closest trading partners, including China, Canada, and Mexico. The expected reciprocal tariff could bring more countries under the U.S. tariff radar, as it aims to reduce the trade deficit.

Trump has continued to wield his tariff weapon, ignoring warnings from global agencies that it could trigger a global economic fallout. Earlier in an interview, Trump said his tariff policies could cause short-term pain for the economy but would benefit long-term prospects. He did not rule out the chances of a recession, which triggered a global market rout.

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, said, “Following a recent correction, the index appears to be finding support around the critical 50 EMA on the daily timeframe. Additionally, the index has been holding above the falling trendline breakout point. A bullish Harami candlestick pattern has formed on the daily chart, suggesting a potential price recovery in the short term.”

"On the lower end, 23,100 might remain a strong support level in the short term, below which weakness could increase. On the other hand, sustaining above 23,100 might provide momentum for a rally toward 23,800," he further added.

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.