Sensex, Nifty Jump Over 2% As Indian Stock Market Erases April 2 Tariff Losses

Indian benchmark indices Sensex and Nifty ended Tuesday’s session with strong gains, as bullish sentiment returned to Dalal Street, fueled by robust buying in realty, banking, and auto sectors. Market volatility saw a sharp decline, with the India VIX tumbling nearly 20 per cent after US President Donald Trump announced tariff exemptions on smartphones and computers, along with signals of a possible pause on auto tariffs.

However, today equities recouped all the losses incurred earlier this month following US President Donald Trump’s announcement of reciprocal tariffs.

By the closing bell, the Sensex had jumped 1,577.63 points, or 2.10 per cent, to settle at 76,734.89, while the Nifty surged 500 points, or 2.19 per cent, to end at 23,328.55. The broader market reflected the bullish momentum as well, with 3,169 stocks advancing, 764 declining, and 162 remaining unchanged.

All sectoral indices ended in the green on Tuesday, reflecting broad-based market strength. The FMCG index recovered into positive territory after briefly seeing profit booking earlier in the session. Leading the rally was the Nifty Realty index, which surged over 4.5 per cent, followed by Nifty Auto with a gain of 3.4 per cent and Nifty Metal up 3 per cent. Other major sectors, including Nifty Bank, IT, Infra, Oil & Gas, and Pharma, also posted gains of over 2 per cent.

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Broader Market Update

The rally extended to mid- and small-cap segments, with the Nifty Midcap 100 rising 2.92 per cent and the Nifty Smallcap 100 up 3.02 per cent. 

Expert Comment

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that short-covering was likely to support the market’s momentum throughout the day. However, he also warned that the uncertainty stemming from US President Donald Trump’s trade stance still looms large. “More volatility could be on the horizon, especially with Trump’s threat of sectoral tariffs,” he said, adding that the Indian pharmaceutical sector might be particularly vulnerable to renewed pressure.

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