Defying tariff and geopolitical tensions, India's equity benchmarks, the BSE Sensex and NSE Nifty, have surged nearly 15% each from their early-April lows and are now approaching record highs. Extending gains for the third consecutive session on Thursday, the Sensex jumped 1,000.36 points (1.21%) to close at 83,755.87, while the Nifty50 rose 304.25 points (1.21%) to settle at 25,549.00.
The Sensex now sits just 2,200 points shy of its all-time high of 85,978, and the Nifty is within 730 points of its peak (26,277).
The market had nosedived between late March and early April after U.S. President Donald Trump announced a reciprocal tax on goods imported into the world’s largest economy. The move stoked fears of an all-out global trade war, with retaliatory tariffs announced by China, the EU, and others. On April 7, the Sensex had plunged about 4,000 points intraday to hit a 52-week low of 71,725 and the Nifty 50 tumbled 1,150 points to hit a low of 21,744.
With the global tensions easing, particularly the Iran-Israel ceasefire after 12 days of intense conflict, the rally has gained momentum. Over just the past three sessions, the Sensex surged 1,859.08 points (2.27%) while the market capitalisation of BSE-listed firms expanded by a staggering Rs 9.70 lakh crore, reaching Rs 457.52 lakh crore.
Vishnu Kant Upadhyay, AVP - Research & Advisory, Master Capital Services said that the easing of geopolitical tensions, declining oil prices, and the RBI’s accommodative policies have created a favorable environment for Indian equities. The recent calming of these tensions has allowed markets to focus on domestic fundamentals, contributing to the rally.
“A potential India-US trade deal, expected to be negotiated by July 9, 2025, could further enhance market sentiment if successful. Initial sentiments look positive and technically, we expect prices to reach towards 25800-26000 (Nifty) in the near term,” stated Upadhyay.
Element:
Benchmarks on April 7 (Intraday low)
Nifty: 21,744
Sensex: 71,525
Benchmarks on June 26
Nifty: 25,549
Sensex: 83,756
Pointer: Sensex 2,200 points away from all-time high of 85,978 while Nifty 730 points away from its peak of 26,277