Stock market today: Sensex, Nifty 50 rebound sharply, rally 1.5% each as bulls return after 3-day selloff

Stock market today: Indian markets made a stellar rebound in Tuesday's trade, April 8, after a brutal selloff in the previous session triggered by concerns over trade tariffs. Sentiment improved on hopes of potential tariff negotiations by Japan with the U.S., and value buying at lower levels helped the frontline indices recover half of Monday’s losses.

The Nifty 50 ended the session with a gain of 1.69% at 22,535 points, while the Sensex wrapped up the session at 74,227 points, 1.50% higher than the previous closing. The rebound in frontline indices today brought an end to their three-day losing streak.

The broader markets also reversed some part of the losses witnessed on ‘Black Monday’, with the Nifty Midcap 100 index rising 2.11% to 49,838 points, while its peer, the Nifty Smallcap 100 index, concluded the session with a 2.13% gain at 15,389 points.

Global financial markets in recent weeks were roiled by escalating trade tensions, initiated by Donald Trump, which spooked investors with fears of rising prices, a potential global economic slowdown, and a possible recession in the U.S., as Trump took the country's effective tax rate to the highest level since 1902.

The crash has wiped out trillions of dollars from global markets, with the U.S. bearing the brunt of the losses, as multiple global investment banks trimmed their growth forecasts and raised inflation expectations for the American economy.

Notably, while Asian markets have crashed severely—some witnessing their worst intraday performance in decades—Indian markets saw a relatively milder decline, as India’s export dependency on the U.S. is lower compared to other major Asian economies.

Meanwhile, the sharp drop in crude oil prices to a four-year low is also flashing cautionary signals, as investors fear that global growth could be impacted by Trump’s sweeping tariffs and retaliatory measures from other countries — with China already announcing matching 34% tariffs on American goods.

Although the global markets have been bleeding relentlessly, Donald Trump is doubling down as he threatened another 50% tariffs on Chinese goods if Beijing did not roll back the 34% tariffs on U.S. — which itself is a response to Trump's 54% duties on the world's second-largest economy.

Sectoral watch: All 13 sectoral indices ended in the green

All 13 major sectoral indices ended Tuesday's session in positive territory, with Nifty Media emerging as the top gainer, rising 4.72%. It was followed by Nifty PSU Bank, Nifty Consumer Durables, Nifty Realty, Nifty Oil & Gas, Nifty FMCG, and Nifty Pharma, which posted gains ranging between 1.91% and 2.64%.

Commenting on today's market performance, Prashanth Tapse, Senior VP (Research), Mehta Equities, said, "Positive global market cues aided massive recovery in local benchmarks, as concerns over US trade tariffs faded a bit on hopes that most of the nations would work out ways to overcome the challenge. With India largely being a consumption-led economy, the US tariff impact may not hurt the country in a major way when compared to some of the other nations."

RBI decision, trade tensions to guide next move, says experts

Mr Ajit Mishra – SVP, Research, Religare Broking, said, "Markets saw a breather after Monday’s sharp decline, rebounding over 1.5% in line with the recovery in global markets. Following a gap-up opening, the Nifty moved in a range but maintained a positive bias throughout the session, eventually closing at 22,535.85. All major sectors contributed to the bounce, with realty, financials, and FMCG emerging as the top gainers. Broader indices also performed well, rising over 2% each."

"Participants are advised not to read too much into this single-day recovery, as tariff-related developments are likely to keep volatility elevated. Moreover, the upcoming outcome of the MPC’s monetary policy meeting could add to the market swings, especially on the weekly expiry day. We recommend maintaining a hedged approach, focusing on stocks showing relatively higher strength," 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.