Sensex and Nifty Experience Significant Relief Rally Before Crucial RBI MPC Meeting
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Synopsis
On April 8, the Indian stock markets rallied strongly, with the Sensex and Nifty rising significantly ahead of the RBI's monetary policy decision. Both indices gained around 1.5%, reversing a three-day decline, as investor sentiment improved despite external tariff concerns.
Key Takeaways
- Sensex jumped by 1,089 points
- Nifty increased by 374 points
- Broad market indices showed strong gains
- Positive trends observed in international markets
- Investors await RBI MPC meeting outcomes
Mumbai, April 8 (NationPress) The Indian stock markets experienced a significant relief rally on Tuesday, breaking a three-day losing trend prior to the Reserve Bank of India's (RBI) monetary policy announcement on April 9.
Both the Sensex and Nifty recorded substantial gains, each increasing by approximately 1.5 percent by the close of trading as investors dismissed fears regarding US tariff threats.
The Sensex surged by 1,089 points, or 1.49 percent, finishing at 74,227.08, while the Nifty ascended by 374 points, or 1.69 percent, concluding at 22,535.85.
This rebound followed significant declines in preceding sessions, which were fueled by concerns about US President Donald Trump’s proposed reciprocal tariffs starting Wednesday (US time) and increasing trade tensions with China.
The broader markets also joined the rally, with the BSE Midcap index climbing by 1.87 percent and the Smallcap index rising by 2.18 percent, indicating strong investor enthusiasm across the spectrum.
Sector-wise, the leading gains came from Nifty Financial Services, FMCG, IT, PSU Bank, Auto, and Realty, all of which realized increases of up to 2 percent.
Among the 30 stocks on the Sensex index, standout performers included Titan, which rose 3.25 percent, followed closely by Bajaj Finance at 3.21 percent, Larsen & Toubro at 3.07 percent, State Bank of India at 3 percent, and Axis Bank at 2.91 percent.
Power Grid was the sole stock that ended in the negative. The optimistic sentiment was mirrored in international markets.
Japan’s Nikkei 225 achieved an impressive 6 percent gain, while the Shanghai Composite Index increased by 1.58 percent and Hong Kong’s Hang Seng Index rose by 1.51 percent.
Investors are now eagerly anticipating the results of the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) meeting regarding interest rate adjustments and more.
In addition to the policy review, forthcoming corporate earnings for the fourth quarter (Q4) and other crucial macroeconomic indicators will shape investor sentiments throughout the week.
“Market sentiment remains positive as investors are optimistic about a stable policy from the central bank and robust domestic fundamentals,” experts remarked.
“India is preparing for the RBI MPC tomorrow, where we expect a 25bps rate cut (in line with consensus),” stated Jaykrishna Gandhi of Emkay Global Financial Services.
He also noted, “We anticipate a potential shift in stance to ‘accommodative’ to signal directional easing bias.”
