The Indian stock market is experiencing a notable rebound on April 8, 2025, following a tumultuous trading session the previous day. After suffering significant losses amid global trade tensions, the benchmark indices, Sensex and Nifty 50, opened higher, buoyed by positive cues from Asian markets.
On April 7, 2025, the Sensex plummeted by 2,226.79 points, or 2.95%, closing at 73,137.90, while the Nifty 50 fell 742.85 points, or 3.24%, to settle at 22,161.60. The sharp decline was attributed to fears surrounding the economic fallout from U.S. President Donald Trump’s tariff policies, which have raised concerns of a potential global trade war.
However, as of 6:45 AM on April 8, the GIFT Nifty—a key indicator of how Indian markets might perform—was suggesting an implied open of over 400 points higher for the Nifty 50 index. This positive momentum is reflected in the early trading, with the Nifty opening at 22,568.65, up 1.8%, and the Sensex rising 1.63% to 74,331.78.
Asian markets also showed signs of recovery on April 8, with Japan's Nikkei 225 surging 6.5%, while Hong Kong's Hang Seng gained over 2%. The rebound in these markets has provided a much-needed boost to investor sentiment in India, which is also supported by a robust domestic liquidity scenario driven by monthly systematic investment plans (SIPs) and domestic institutional investor (DII) participation.
Despite the positive opening, the market remains cautious amid ongoing global trade tensions. On April 7, foreign institutional investors (FIIs) turned net sellers of Indian equities, offloading shares worth Rs 9,040.01 crore. In contrast, domestic institutional investors (DIIs) were net buyers, purchasing shares worth Rs 12,122.45 crore. This divergence highlights the contrasting sentiments among local and foreign investors.
Market analysts are closely monitoring key levels for the Nifty. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that if the Nifty remains below the 22,000 mark, it could lead to additional weakness. Conversely, if it manages to stay above this level, a pullback could occur, with resistance seen at 22,500 and 22,800. Should the Nifty drop below 22,000, it may gradually decline to 21,700 levels.
Looking ahead, the Reserve Bank of India (RBI) is expected to announce a 25 basis points cut in key interest rates during its monetary policy meeting on April 9, 2025. This decision is anticipated to further influence market dynamics, especially as inflation appears to be moderating.
In the backdrop of these developments, the broader market indices are also seeing positive movement. The Nifty Midcap 100 and Smallcap 100 indices jumped over 2% each at the opening bell on April 8, indicating a broad-based recovery across sectors.
Sectoral indices, including Nifty Auto, consumer durables, realty, and banks, were all up by over 1% during the pre-open session. This widespread optimism reflects confidence among investors regarding the potential for growth in various sectors, despite the prevailing market volatility.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that while the heightened uncertainty and volatility gripping markets worldwide may linger, India’s macroeconomic fundamentals remain stable. He noted that the country is poised for a growth rate of around 6% in FY26, with fair valuations particularly in large-cap stocks. He encouraged long-term investors to consider accumulating high-quality large-cap stocks, especially in the financial sector, as they present attractive buying opportunities.
In addition to the domestic factors, the global economic landscape continues to evolve. The U.S. markets closed mixed on April 7, with the Dow Jones Industrial Average falling 349.26 points, or 0.91%, to 37,965.60, while the S&P 500 lost 11.83 points, or 0.23%, to 5,062.25. Meanwhile, the Nasdaq Composite managed to gain 15.48 points, or 0.10%, closing at 15,603.26.
As the Indian market navigates through these turbulent times, investors are advised to adopt a cautious approach, with a focus on fundamental analysis and valuation metrics. The current environment presents both risks and opportunities, and staying informed about global developments will be crucial for making sound investment decisions.
In conclusion, the Indian stock market is showing signs of recovery on April 8, 2025, following significant losses the previous day. With positive cues from Asian markets and strong domestic liquidity, investors are hopeful for a sustained rebound. However, ongoing global trade tensions and the upcoming RBI monetary policy decision remain key factors that will influence market direction in the near term.
