Sensex Recovers 1200 Points, Nifty Reclaims 22,500 As Bulls Fight Back After Monday’s Mayhem

India’s benchmark indices traded in the positive on Tuesday, April 8, recovering after Monday’s mayhem. After giving a gap-up opening, Sensex zoomed to the day’s high at 74,421.65, up by 1,283.75 points or 1.75 per cent. Likewise, Nifty too jumped 416.55 points, or 1.87 per cent, to register the day’s high at 22,577.55. However, at the time of filing this report, both indices had pulled back slightly from their highs but were still holding on to gains.

Monday's crash, which was triggered by a US tariff-driven sell-off that spooked investors, saw Sensex shedding 2226.79 points or 2.95 per cent, ending at 73,137.9, and Nifty tumbling  742.85 points or 3.24 per cent, closing at 22,161.6.

In Asian markets, Japan’s Nikkei 225 rebounded around 6 per cent after crashing 7 per cent the previous day. Hong Kong’s Hang Seng traded flat-to-negative after crashing nearly 14 per cent. South Korea’s KOSPI traded higher by nearly 1 per cent after it witnessed a crash of over 5.5 per cent yesterday.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the current uncertainty and volatility in global markets are likely to persist for some time. He highlighted a few key takeaways from the ongoing turmoil. First, while the trade war seems to be mainly between the US and China, other countries like the EU and Japan are opting for negotiations, and India has already begun talks with the US on a Bilateral Trade Agreement (BTA). Second, the risk of a US recession has risen. Third, China is expected to be the hardest-hit economy, especially if Trump's threat of a 50 per cent tariff on Chinese goods is enforced, which could severely impact Chinese exports to the US. Fourth, China may attempt to dump its products, particularly metals, in other countries, keeping international metal prices low.

Top Gainers & Losers

From the Sensex pack, Titan, Infosys, Bajaj Finserv, State Bank of India, and Bajaj Finance led the gains. At the same time, Power Grid, Mahindra & Mahindra, Tata Steel, Nestle India, and Maruti Suzuki India dragged the index.

Among Nifty's 50 stocks, Shriram Finance, Titan, Grasim Industries, Bharat Electronics, Infosys and Jio Financial Services were the top gainers, while Mahindra & Mahindra, Power Grid, Nestle India, Tata Steel, Hindalco and Maruti Suzuki India were the top losers.

All Sectoral Indices Trade In Green

On the sectoral front, Nifty Consumer Durables surged 2.6 per cent, while Nifty PSU Bank and Nifty Realty gained over 2 per cent each. Nifty IT and Nifty Pharma gained 1.6 per cent and 1.3 per cent, respectively.

Nifty Bank, which tracks the top 12 private and public bank stocks, traded higher by nearly 1 per cent. All sectoral indices traded in the green.

In the broader market, the Nifty Smallcap 100 gained 1.4 per cent and Nifty Midcap 100 rose 1.2 per cent during early trade.