Market Performance
On April 11, 2025, Indian benchmark indices witnessed a significant rally:
- BSE Sensex rose by 1,310.11 points (1.77%), closing at 75,157.26. During the session, it touched a high of 75,467.33, marking an intraday gain of 1,620.18 points (2.19%).
- NSE Nifty 50 climbed 429.40 points (1.92%), ending at 22,828.55, after hitting an intraday peak of 22,923.90 (2.34%).
- Bank Nifty recorded a sharp jump, closing at 50,995, up by over 750 points from the previous close.
- Broader markets also participated:
- BSE Small-cap index increased by approximately 3%.
- BSE Mid-cap index advanced around 1.8%.
Circuit activity on the BSE reflected the strong momentum:
- 473 stocks hit circuit limits.
- 331 stocks reached their upper circuits.
- 142 stocks hit their lower circuits.
- 65 stocks scaled new 52-week highs, while 38 stocks touched 52-week lows.
Key Developments Behind the Rally
The sharp uptrend on Dalal Street can be traced to several geopolitical and economic developments:
1. Temporary Suspension of Tariffs by the US
A major driver of the day's market movement was the United States' decision to suspend additional tariffs of up to 26% on India and other nations for 90 days, effective until July 9, 2025. This pause followed an executive order to impose broad-based tariffs on around 60 countries. While a baseline 10% tariff remains, the suspension provides Indian exporters temporary relief and time for negotiations.
2. Momentum in Trade Discussions
The three-month suspension has allowed the Indian government to intensify negotiations around a partial Bilateral Trade Agreement (BTA) with the United States. Reports suggest a focused strategy is being pursued to improve market access, safeguard local industries, and enhance trade relations.
3. Strategic Advantage Over Regional Economies
Unlike China, Hong Kong, and Macau, India's exemption from the new US tariff measures could offer Indian exporters a short-term competitive edge. The pause may redirect global investors' focus toward India and away from regions still subject to trade penalties.
4. RBI Policy Actions
The Reserve Bank of India (RBI) recently announced a 25 basis point cut in the repo rate, signaling its intent to maintain liquidity and support economic activity. Additionally, the central bank projected FY26 inflation at 4%, indicating controlled inflation expectations despite global economic uncertainties.
5. Anticipation of Strong Q4 FY25 Earnings
Market sentiment was also influenced by optimism surrounding the upcoming Q4 FY25 earnings season. Investors expect robust performance, particularly in the banking and industrial sectors, partly due to supportive policy and demand dynamics.
6. Short-Covering Activity
The rally was further boosted by short-covering. After a decline earlier in the week and a market holiday on Thursday (Mahavir Jayanti), many traders rushed to cover short positions, adding to the upward pressure on indices.
Company Details
Some of the top-performing companies on the NSE Nifty included:
These stocks witnessed gains of up to 5% during Friday's session.
Summary
The Indian stock market witnessed a broad-based rally on April 11, 2025, primarily fueled by geopolitical developments such as the US tariff suspension, ongoing trade negotiations, and favorable monetary policy cues. Gains were seen across significant indices and sectors, with a notable surge in large-cap and mid/small-cap stocks. Additionally, optimism ahead of Q4 FY25 earnings and technical positioning contributed to the market's robust performance.
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