Stock markets ralyy: The Indian stock markets saw a tremendous rise on Friday 11 April. Investors shouted with the decision to stop the US tariff on 90 days. Sensex and Nifty jumped more than 2 per cent in early trade. The total market value of companies listed on this fast Bombay Stock Exchange (BSE) increased by more than 8.56 lakh crores. This is the biggest bounce in the last 6 months. The total market cap of companies listed on BSE increased from ₹ 393.82 lakh crore to ₹ 402.37 lakh crore.
The BSE Sensex rose 2.08 per cent to 75,356.38 during the trading. This is the biggest intraday bounce in the Sensex after 22 November 2024. Smallcap and midcap stocks also saw fierce shopping. The BSE midcap index and smallcap index jumped up to 2 per cent and 2.8 per cent respectively.
There were two major reasons behind this boom- a ban on American tariffs and new expectations regarding the trade agreement between India and America.
US President Donald Trump announced to stop the high tariffs imposed on all many countries on Wednesday 9 April for 90 days. After this, on Thursday, the stock markets from America to Europe and Asia saw a huge rise. However, the Indian stock markets were closed due to Mahavir Jayanti on Thursday, after which they continue to rise from early trade today.
However, global markets could not continue their boom on the second day today. Especially the Asian markets saw a decline. Japan’s Nikkei 225 index fell more than 5.6%, while Hong Kong’s Hang Seng index fell 0.4% to 20,606.04. China’s Shanghai composite fell 0.2% to 3,218.94. South Korea’s Kospi fell 1.6% and Australia’s ASX 200 2.1%. The growing trade tension of the US-China is believed to be behind this decline.
What do experts say?
Despite today’s rise in the stock market, analysts have advised investors to take precautions. Choice Broking Equity Research Analyst Mandar Bhojane advised investors to be vigilant in view of uncertainty in the US policy. He said, “Trump’s stance may change overnight. It is appropriate to shop with a stop-laoss at a decline of near 22,800. If weakness persists, consider selling near the resistance zone of 23,200-23,366.”
Ritesh Jain, founder of Pinnatry Macro, said that “although American events may affect initial signals, the Indian market moves are more connected to American bond yields and domestic factors. Gold prices in India are again at a new height.”
Research head of Axis Securities, Akshay Chinchakar said, “Immediate support for Nifty is between 22,800–22,900, while resistance is visible on 23,200–23,366. If the Nifty is over 23,000, it can be more likely.”
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