HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges rebound on Tuesday ahead of RBI policy decision
Apr-08-2025

Indian equity benchmarks took a breather after previous session sharp decline, rebounding around one and half percent on Tuesday, in line with the recovery in global markets. Following a gap-up opening, the key gauges moved in a range but maintained a positive bias throughout the session. All major sectors contributed to the bounce, with Oil & Gas, Realty and Consumer Durables emerging as the top gainers. 

Some of the important factors in today’s trade: 

Govt steps up export support amid US Tariffs: The commerce ministry is stepping up efforts to help exporters explore new markets to push outbound shipments while also setting up a working group to monitor possible surge in imports from countries like China to tackle the impact of sweeping tariffs announced by the US.

India's 'applied tariffs' to US only 7-8%, not humongous: Union Commerce Minister Piyush Goyal has said the ‘applied tariffs' to the US are only 7-8%, which he described as not humongous. Declining to disclose details on the ongoing negotiations with the US, which has slapped a 26 per cent ‘reciprocal tariff’ on the country, he said India believes it can have bilateral trade pacts with countries that exercise fair trade practices. 

All eyes on RBI policy decision tomorrow: The RBI's monetary policy committee headed by Governor Sanjay Malhotra began its three-day deliberations on key interest rates on Monday. The decision is scheduled to be announced on Wednesday, where a 25-bps rate cut is anticipated. 

Rupee plunges against US Dollar: Indian rupee tumbled against the US dollar, logging the maximum single-day loss in nearly three months amid a looming global trade war stoking fears of economic meltdown. 

Global front: European markets were trading higher despite the U.S. threat to escalate tariffs against China. Asian markets settled mixed on Tuesday amid signs of rising tensions between the U.S. and China. China threatened to ‘resolutely take countermeasures to safeguard its own rights and interests’, in response to U.S. President Donald Trump's threat of an additional 50 percent tariff on Chinese imports.

Finally, the BSE Sensex rose 1089.18 points or 1.49% to 74,227.08, and the CNX Nifty was up by 374.25 points or 1.69% to 22,535.85.   

The BSE Sensex touched high and low of 74,859.39 and 73,424.92 respectively. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 1.87%, while Small cap index was up by 2.18%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.58%, Realty up by 2.44%, Consumer Durables up by 2.38%, Telecom up by 2.32% and Capital Goods up by 2.14%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Titan Company up by 3.29%, Bajaj Finance up by 3.21%, SBI up by 3.00%, Larsen & Toubro up by 2.94% and Bajaj Finserv up by 2.75%. On the flip side, Power Grid Corporation down by 0.14% was the lone loser.

Meanwhile, with the changing global trade dynamics, think tank -- Global Trade Research Initiative (GTRI) has indicated that Indian merchandise exports to the US from sectors such as marine items, gold, electrical, and electronics are expected to decline by $5.76 billion this year due to increased American duties. However, it added that India's competitive position in select product segments may help cushion some of the losses. It expects sectors such as textiles made-up, apparel, ceramic products, inorganic chemicals, and pharmaceuticals to witness modest gains amid changing US trade policies. 

Meanwhile, the GTRI expects several key products to see reduction amid US’ announcement of an additional 26 per cent duty on Indian goods from April 9 with pharma, semiconductors and certain energy goods being some exceptions. It estimates the exports of fish and crustaceans to fall by 20.2 per cent; iron or steel articles by 18 per cent; diamonds, gold products by 15.3 per cent; vehicle and parts exports by 12.1 per cent; and electrical, telecom, and electronic products by 12 per cent. In addition, other categories such as plastics, carpets, petroleum products, organic chemicals, and machinery are also expected to be negatively impacted.

According to the think tank, the high-value items such as energy products, including petroleum, solar panels, and pharmaceuticals as well as copper were accounted for $20.4 billion or 22.7 per cent of India's exports to the US in 2024 and they will continue to face only the standard MFN (Most Favoured Nation) tariff. While the key industrial goods such as steel, aluminium, automobiles, and auto parts which contributed $2.2 billion, or 2.5 per cent of India's total exports to US will face a 25 per cent tariff with no change to their MFN status. However, GTRI has pointed out that the largest impact falls on the remaining basket of goods, which were valued at $67.2 billion or 74.8 per cent of total trade, will be hit with a 26 per cent tariff. It also suggested that the trade dynamics could reshape across a wide range of industries if MFN tariffs still apply.

The GTRI has mentioned that while this assessment provides a structured and data-driven estimate of the impact of new tariffs, it has several limitations as it assumes that all other factors such as exchange rates, global demand, supply chain dynamics, non-tariff barriers and even US tariffs remain constant, which may not hold true in real-world trade scenarios. Additionally, the report also does not account for how quickly Indian exporters can adapt, shift markets, or adjust pricing strategies in response to tariff changes.

The CNX Nifty traded in a range of 22,697.20 and 22,270.85. There were 49 stocks advancing against 1 stock declining on the index.   

The top gainers on Nifty were JIO Financial Services up by 5.61%, Shriram Finance up by 5.21%, Bharat Electronics up by 3.69%, Adani Enterprises up by 3.45% and Cipla up by 3.44%. On the flip side, Power Grid Corp was down by 0.09% was the lone loser.

European markets were trading higher; UK’s FTSE 100 increased 133.82 points or 1.74% to 7,835.90, France’s CAC rose 83.37 points or 1.2% to 7,010.49 and Germany’s DAX gained 291.61 points or 1.47% to 20,081.23.

Asian markets settled mixed on Tuesday, as Japanese shares gained after US Treasury Secretary Scott Bessent said Japan is likely to be prioritized in tariff negotiations with the Trump administration. Chinese shares rose after China said it will take countermeasures against the US threat of an additional 50% tariff on Chinese goods, noting that the move is groundless and just a typical unilateral bullying practice. Hong Kong shares settled up as Chinese state funds intervened by purchasing exchange-traded funds to prop up the market. Meanwhile, the Indonesian market sank as markets reopened after a week-long Eid holiday break and reacted to global market turmoil caused by US tariffs.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,145.55

48.97

1.56

Hang Seng

20,127.68

299.38

1.49

Jakarta Composite

5,996.14

-514.48

-8.58

KLSE Composite

1,443.56

-0.24

-0.02

Nikkei 225

33,012.58

1,876.00

5.68

Straits Times

3,469.47

-71.03

-2.05

KOSPI Composite

2,334.23

6.03

0.26

Taiwan Weighted

18,459.95

-772.40

-4.18
  RELATED NEWS >>
Most Viewed >>
April 09 , 2025
These value mutual funds delivered over 25% an
April 16 , 2025
Mutual funds increase cash allocation by Rs 18
April 09 , 2025
Flipkart Minutes joins Blinkit, Zepto to deliv
April 09 , 2025
Union AMC plans SIF, AIF, and GIFT City foray,
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.