Market Commentary - Mid-Session
The key equity indices traded with major gains in early trade as investor confidence was severely shaken by several factors: growing global recession fears, heightened concerns about potential US tariff actions on Indian goods and substantial selling pressure in frontline stocks ahead of the upcoming earnings season. Despite these challenges, Indian equities have demonstrated relative strength compared to other markets, largely based on optimism that the world's fifth-largest economy will endure only minor setbacks rather than severe damage during Trump's trade conflicts. The Nifty traded above the 22,500 level.
All the sectoral indices on NSE traded in the green, with consumer durables, realty and PSU bank shares gaining the most.
At 09:30 IST, the barometer index, the S&P BSE Sensex, climbed 1,209.41 points or 1.65% to 74,347.31. The Nifty 50 index soared 377.20 points or 1.70% to 22,538.80.
The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index jumped 2.01% and the S&P BSE Small-Cap index surged 2.29%.
The market breadth was strong. On the BSE, 2,575 shares rose and 324 shares fell. A total of 92 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 9,040.01 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 12,122.45 crore in the Indian equity market on 7 April 2025, provisional data showed.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 13.49% to 19.72.
Stocks in Spotlight:
Bharat Electronics rallied 3.61 after the company received an order worth Rs 2,210 crore for electronic warfare from the Indian Ari Force. The company received orders worth Rs 2,803 crore so far in financial year 2026.
Mahindra & Mahindra rose 1.73% after the company's total production jumped 23.51% to 88,701 units in March 2025 as against 71,814 units in March 2024. Total sales increased 19.32% to 79,751 units in March 2025 as compared with 66,840 units in March 2024. The company incorporated Mahindra Advanced Technologies as a wholly owned subsidiary.
Titan Company jumped 5.61% after the company's standalone business saw an uptick of 25% compared to last year. Caratlane registered 22% YoY growth, driven by healthy growth in the studded portfolio.
Numbers to Track:
The yield on India's 10-year benchmark federal paper was rose 0.21% to 6.602 as compared with previous close 6.588.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.8250, compared with its close of 85.7600 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement gained 0.72% to Rs 87,550.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.45% to 103.02.
The United States 10-year bond yield dropped 0.19% to 4.149.
In the commodities market, Brent crude for June 2025 settlement rallied 85 cents or 1.32% to $65.06 a barrel.
Global Markets:
Dow Jones futures is up 734 points, indicating a rebound in the US stocks today.
Asian markets staged a cautious rebound on Tuesday, recovering some ground after Monday's financial bloodbath triggered by fresh concerns over worsening consumer finances and tariffs.
The market jitters followed US President Donald Trump's fiery threat to slap a whopping 50% tariff on imports from Beijing. This came in response to China's own counterpunch: a 34% tit-for-tat tariff on US goods. Not to be outdone, China's Commerce Ministry doubled down on Tuesday, vowing to fight to the end and warning of further countermeasures if Washington follows through.
Even as the rhetoric escalated, Beijing struck a note of restraint. The Commerce Ministry reiterated that it still favored dialogue with the US, cautioning that in a trade war, there are no winners.
The escalating tensions have left global investors rattled. Analysts are now openly worrying about the ripple effects on supply chains, trade routes, and overall economic stability. A full-blown trade war, they warn, could put global growth into a chokehold.
Over in the US, Wall Street had a rough ride Monday. The Dow Jones Industrial Average shed 0.9%, the S&P 500 dipped 0.2%, and the Nasdaq managed a modest 0.1% gain'thanks in part to a late-session tech rebound.
President Trump, meanwhile, remained unmoved by the volatility, reiterating his administration's commitment to reciprocal tariffs, brushing off any talk of a pause.
Among the tech heavyweights, NVIDIA soared 3.5%, and Broadcom Inc surged 5.4%. Amazon and Meta Platforms also clawed back losses. On the flip side, Apple slid 3.7%, and Tesla tumbled another 2.6%, adding to investor anxiety.
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