On Friday, April 11, 2025, India's stock markets surged significantly following a key announcement from the United States regarding tariffs. The benchmark indices, Nifty50 and Sensex, both opened in the green, with the Sensex climbing by 1,380.75 points, or 1.87%, to reach 75,227.90, while the Nifty 50 gained 429.80 points, or 1.92%, landing at 22,828.95. This positive momentum was largely attributed to U.S. President Donald Trump's decision to suspend an additional 26% tariff on India for a period of 90 days, boosting investor confidence amid ongoing global trade uncertainties.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that this pause in tariffs has provided a much-needed relief to the markets, which had been grappling with fears of escalating trade tensions. He remarked, "The gap up opening in the Nifty this morning is unlikely to sustain beyond a point given the elevated uncertainty in global markets." Despite the initial enthusiasm, he cautioned that investors should prioritize safety over returns, especially in a volatile economic environment.
The broader markets reflected this bullish sentiment, with the Nifty Midcap 100 and Smallcap 100 indices rising by 1.19% and 1.82%, respectively. All sectoral indices were trading in the green, with Nifty Pharma emerging as the top gainer, closely followed by the metal, healthcare, and auto sectors. Tata Steel, Hindalco, and Tata Motors were among the leading stocks driving the Sensex higher, with gains of up to 4.5%.
However, not all news was positive. Tata Consultancy Services (TCS), India’s largest IT services provider, faced a decline in its share price after reporting a 1.68% drop in consolidated net profit for the fourth quarter of FY25. The company’s net profit stood at ₹12,224 crore, down from ₹12,380 crore in the previous quarter, despite a 5.3% increase in revenue to ₹64,479 crore. This prompted several brokerages to lower their target prices for TCS, raising concerns about growth in the IT sector amid global economic uncertainties.
In addition to TCS, Sun Pharma's shares advanced by 5% following a favorable ruling from a U.S. court regarding its planned launch of Leqselvi (deuruxolitinib). The court's decision nullified a preliminary injunction that had previously delayed the product's introduction into the U.S. market, providing a boost to investor sentiment surrounding the pharmaceutical company.
The Indian Rupee opened at 86.24 against the U.S. dollar, showing a slight depreciation of 45 paise compared to the previous day's close of 86.69. Over the past three sessions, the Rupee has lost ₹1.45, reflecting heightened global trade uncertainties. Despite this, the overall market performance remained strong, with 27 out of 30 Sensex constituents opening in the green.
The April 2025 futures and options (F&O) series is shaping up to be one of the shortest in trading history, limited to just 16 sessions due to a series of stock market holidays. Trading was closed on April 10 for Shri Mahavir Jayanti and will also be shut on April 14 and April 18 for Dr. Baba Saheb Ambedkar Jayanti and Good Friday, respectively.
As the day progressed, analysts like Shrikant Chouhan from Kotak Securities highlighted key support and resistance levels for day traders, noting that 22,350/73,650 would act as crucial support while 22,500/74,200 could serve as breakout levels for bullish traders. He stated, "If the market falls below 22,350/73,650, it could retest levels of 22,250-22,200/73,300-73,000, while a dismissal of 22,500/74,200 could push the market towards 22,650-22,700/74,500-74,700."
The global context also played a significant role in shaping market sentiments. Following Trump's tariffs announcement, which included a staggering 145% tariff on China, fears of a trade war escalated. The U.S. markets experienced a sharp sell-off, with the Nasdaq closing 4.6% lower. This backdrop of global market volatility has made investors more cautious, despite the positive developments in the Indian markets.
In terms of commodities, gold prices surged, with futures climbing by 3.2% to $3,177.50, marking the best day for gold since April 2020. This rise was fueled by increased investor demand for safe-haven assets amid the ongoing trade tensions.
Looking ahead, market participants are bracing for a potentially volatile trading environment as they await further developments on the tariff front and the upcoming earnings reports from other major companies. The mixed signals from both domestic and global markets underscore the challenges investors face in navigating this uncertain landscape.
In conclusion, while Friday's trading session brought a wave of optimism to Indian markets, fueled by the suspension of U.S. tariffs, the broader economic context remains fraught with challenges. Investors are advised to remain vigilant and consider the implications of global trade dynamics on their investment strategies.
