April 8 (Reuters) – India’s benchmark equity indexes rose on Tuesday, lifted by bargain buying and a broader Asian rally, as hopes that global trade tensions might ease helped domestic markets recover from their worst drop in 10 months.
The Nifty 50 (.NSEI)
, opens new tab rose 1.69% to 22,535.85 while the BSE Sensex (.BSESN)
, opens new tab gained 1.49% to 74,227.08. The indexes fell about 3% in the previous session as fears of a recession took hold after fresh U.S. tariffs escalated the global trade war.
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On Tuesday, the Nifty posted its best session in three months while the Sensex in three weeks.
Bargain hunting after Monday’s drop drove domestic markets higher, said Devarsh Vakil, head of prime research at HDFC Securities.
Asian stocks rebounded from 1-1/2-year lows, with Japan’s Nikkei 225 (.N225)
, opens new tab jumping 6%, outperforming regional peers.
The uptick came after U.S. President Donald Trump said Japan would send a delegation to negotiate on the tariffs, boosting hopes that Washington might soften its tariff stance.
However, Trump also warned of an additional 50% tariff on Chinese imports if Beijing maintains its retaliatory measures.
Despite global concerns, Indian markets may remain relatively insulated due to limited direct exposure to the tariffs, said A Balasubramanian, chief executive of Aditya Birla Sun Life AMC.
“Additionally, falling oil prices could help reduce inflation, potentially leading to further rate easing from the Reserve Bank of India to support growth,” Balasubramanian said.
The RBI is widely expected to announce a 25 basis point rate cut on Wednesday.
All 13 major Indian sectoral indexes advanced on the day. The broader markets also firmed up, with smallcap (.NIFSMCP100)
, opens new tab and midcap indexes (.NIFMDCP100)
, opens new tab gaining about 2.1% each.
Among stocks, jeweller Titan (TITN.NS)
, opens new tab gained 3.4% on strong quarterly revenue growth, while Bharat Electronics (BAJE.NS)
, opens new tab also rose 3.4% after an order win.
Lenders Axis Bank (AXBK.NS)
, opens new tab, State Bank of India (SBI.NS)
, opens new tab, and PNB Housing Finance (PNBH.NS)
, opens new tab climbed following upgrades from Goldman Sachs.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee, Janane Venkatraman, Savio D’Souza and Mrigank Dhaniwala
Our Standards: The Thomson Reuters Trust Principles.
