Indian equities rally sharply as investors cheer Trump’s tariff pause on India, RBI rate cut, and Q4 results optimism, triggering bullish sentiment across sectors.
Mumbai, April 11 – The Indian stock market witnessed a spectacular rally on Friday with benchmark indices surging sharply on the back of positive global cues and domestic policy tailwinds. The BSE Sensex jumped 1,310 points to close at 75,157, while the Nifty 50 climbed 429 points to settle at 22,828, riding a wave of optimism triggered by multiple market-friendly developments.
The Nifty opened at 22,695 and touched an intraday high of 22,923, while Bank Nifty closed with gains of 750 points, ending the session at 50,995. Broader markets participated in the uptrend as well, with the BSE Small-cap index jumping 3% and the Mid-cap index climbing 1.80%.
Experts attributed this dramatic upsurge on Dalal Street to a combination of five key factors:
🔍 Top 5 Reasons Why Indian Markets Skyrocketed Today:
1. Trump’s 90-Day Tariff Pause on India
US President Donald Trump’s unexpected decision to pause a 26% additional tariff on Indian goods for 90 days sent a strong positive signal to the market. Analysts believe this reprieve could help fast-track Indo-US trade negotiations and improve the export outlook.
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“The exemption for Indian exports has triggered strong buying sentiment across sectors,” said Avinash Gorakshkar of Profitmart Securities.
2. “Sell China, Buy India” Narrative Among FIIs
Global investors appear to be reducing exposure to China and reallocating to India amid escalating US-China tensions. India’s democratic governance, manufacturing reforms, and geopolitical positioning have made it a preferred alternative.
“Trump’s exclusion of China from the tariff pause while easing conditions for India reinforces investor trust in India as a safer investment destination,” noted Sandeep Pandey of Basav Capital.
3. RBI Repo Rate Cut Boosts Liquidity Hopes
The Reserve Bank of India’s 25 basis point rate cut, accompanied by an accommodative stance, further boosted market sentiment. The RBI’s forecast of 4% inflation for FY26 also reassured investors of macroeconomic stability.
“This policy move is being interpreted as a signal of strong economic fundamentals and no immediate liquidity concerns,” said Anshul Jain of Lakshmishree Investment.
4. Short-Covering Fuelled Post-Holiday Momentum
With Indian markets closed on Thursday for Mahavir Jayanti, traders rushed to cover short positions after strong global market performance on Thursday, resulting in a gap-up opening and sharp intraday rally.
5. Optimism Around Q4 FY25 Results
The market is pricing in strong Q4 earnings, especially from banking and industrial sectors. Analysts suggest that the RBI’s rate cut and Trump’s tariff pause could support corporate margins and enable smoother provisioning.
“Indian companies now have three months to plan for a potential tariff regime, giving them strategic breathing space,” said Pandey.
📊 Market Snapshot (April 11, 2025):
- Sensex: +1,310 points → 75,157
- Nifty 50: +429 points → 22,828
- Bank Nifty: +750 points → 50,995
- BSE Small-Cap: +3% | Mid-Cap: +1.8%
- 52-Week Highs: 65 stocks | Upper Circuit: 331 stocks
📉 Investor Outlook:
While the rally is notable, market experts advise caution.
“Upside momentum may face resistance between 22,900 and 23,100. Investors should remain alert to global developments, especially on the trade front,” said Sugandha Sachdeva of SS WealthStreet.
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