Indian Markets Rebound: Sensex and Nifty Surge Amid Trade Policy Developments

Market Performance

Indian stock markets rebounded on April 2 after two consecutive days of decline, with benchmark indices closing higher. The Sensex gained 592.93 points, or 0.78%, ending at 76,617.44, while the Nifty 50 rose by 166.65 points, or 0.72%, to settle at 23,332.35. Broader markets reflected this positive sentiment, as the Nifty Midcap 100 surged by 1.61% and the Smallcap 100 advanced by 1.2%.

All 13 sectoral indices ended the session in green, with leading contributions from financial, IT, FMCG, and auto stocks. The Nifty FMCG, Bank, IT, and Auto indices registered gains of up to 1%, while Nifty Infra, Metal, Pharma, and PSU Bank indices increased by around 0.5%. The Nifty Oil & Gas index, which had dipped earlier in the day, recovered to close with a modest 0.2% gain.

Key Market Developments

The market rally coincided with anticipation surrounding U.S. tariff policies, as the White House confirmed that new reciprocal tariffs would take immediate effect. Investors closely monitored global trade developments due to the potential impact on international markets.

In domestic economic indicators, India's manufacturing PMI for March recorded an eight-month high, signalling optimism regarding corporate earnings for the final quarter of the financial year. This contributed to the overall positive market sentiment.

Company Highlights

Several stocks exhibited notable performances during the trading session:

• Tata Consumer Products witnessed a surge of over 7%.
• Vishal Mega Mart gained 6.5%, driven by positive sectoral trends and firm business updates from peer retailers.
• TVS Motor Company reported its highest-ever annual sales, reaching 4.74 million units, a 13% increase from the previous year. March sales rose 17% year-on-year to 414,687 units.

Among the top gainers on the Nifty were Tata Consumer Products, Zomato (Eternal), Titan Company, IndusInd Bank, and Tech Mahindra. Meanwhile, Bharat Electronics, UltraTech Cement, Power Grid Corp, Nestle, and Hindalco were among the major laggards.

Summary

Indian markets ended on a strong note on April 2, recovering from prior losses. Gains in financial and IT stocks, alongside a resilient broader market, contributed to the positive trend. Investors remained focused on upcoming U.S. trade policies and their possible effects on global trade. Overall, all sectoral indices closed in positive territory, with notable performances from Tata Consumer Products, Vishal Mega Mart, and TVS Motor Company.