According to Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity – Ashika Stock Broking part of Ashika Group, Indian equities ended the day on a strong note after a volatile session, recovering from early losses triggered by weak global cues. The Nifty 50 opened lower at 23,433, mirroring the overnight sell-off in U.S. markets after President Donald Trump announced a 25% tariff on imported cars and key auto parts, effective April 3. This policy shift led to a sharp decline in U.S. equities, which cascaded into Indian markets, pushing the index to an intraday low of 23,412 in the opening hours.
Despite the weak start, the benchmark index staged an impressive 200-point recovery, reaching an intraday high of 23,626. The Bank Nifty followed suit, rebounding 620 points, driven by strong buying in banking and financial stocks. Sector-wise, Banks, Financial Services, Oil & Gas, and Media led the gains, while Automobile and Pharma stocks remained under pressure due to concerns over global trade disruptions.
The broader market also exhibited resilience, with both the Nifty Smallcap and Midcap indices closing in the green, reflecting sustained investor interest beyond large-cap stocks. On the derivatives front, market breadth leaned positive, with 138 stocks advancing against 82 declines. Significant open interest (OI) build-up was observed in IndusInd Bank, Tata Motors, Motherson, IRB Infrastructure, and TVS Motor, suggesting heightened trading activity in these counters.
Overall, the market displayed strong intraday recovery, bouncing back from the day’s lows and hovering near the session’s highs. As they persist, investors will closely track trade developments and institutional flows to gauge the market’s next move.
