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Sensex, Nifty in Green: Why Is the Stock Market Rising Today? 3 Things to Know

ndian stock markets showed strong recovery on Tuesday, April 8, 2025, following a sharp sell-off on Monday. Both Sensex and Nifty opened higher, gaining over 1.5% in early trade, as global cues turned positive. The Sensex surged 902.75 points to reach 74,040.65, while the Nifty climbed 290.85 points to 22,452.45 by mid-morning. Broader indices also rallied, with Nifty Smallcap100 and Midcap100 rising by 1.63% and 1.37%, respectively.

The rebound comes after Monday’s steep losses—the worst single-day drop in 10 months—driven by fears of a global trade war and economic slowdown. On April 7, Sensex had fallen nearly 3%, and Nifty dropped by 3.2%.

Three key factors contributed to today’s market recovery:

  1. Positive Global Cues:
    Asian markets opened higher after U.S. equity futures showed signs of stabilization overnight. Japan’s Nikkei jumped over 5%, and Hong Kong’s Hang Seng gained more than 2%, boosting investor sentiment in India.
  2. Technical Support Levels:
    Despite Monday’s fall, the Nifty held above the critical 22,000 level, signaling resilience in market sentiment. Analysts noted that this technical stability encouraged buying across sectors today.
  3. Easing Trade War Concerns:
    While uncertainty persists, investors are optimistic that the U.S.-China trade conflict may not impact other economies significantly. Negotiations between India and the U.S., along with reduced fears of tariffs on pharmaceutical exports, further supported market sentiment.

India VIX, the volatility index often seen as a fear gauge, dropped sharply by over 11%, reflecting improved investor confidence compared to Monday when it had surged by more than 60%.

Looking ahead, experts remain cautious despite today’s gains. Dr. V K Vijayakumar of Geojit Financial Services highlighted risks such as potential U.S. recession fears and China’s vulnerability to tariffs but noted that India’s macroeconomic fundamentals remain stable with fair valuations in large-cap stocks.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the Mumbai Samachar. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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