- Indian markets staged a sharp afternoon rally; Nifty gained 400+ pts, Sensex up 1,450+.
- US Futures rebounded after recent slump; ECB cut rates but Europe stayed cautious.
- FII buying, sectoral strength, and Open Interest buildup drove local optimism.
Global markets saw mixed reactions as the European Central Bank’s interest rate cut failed to lift sentiment in Europe, while Wall Street battled volatility following new US tariffs.
Indian markets, in contrast, rallied hard in the second half of the trading day. Traders pointed to heavy buying in private banks and pharma stocks, fueled by Open Interest buildup near key Nifty resistance levels.
Riding the Reversal: Why Indian Markets Soared Despite Global Headwinds
Despite the ECB’s rate cut, European stocks couldn’t hold gains. The Stoxx 600 slipped 0.5%, and most sectors ended lower, except oil and gas. Siemens Energy provided a bright spot with a 13% gain, but Hermès dipped nearly 3% after a modest sales miss.
In the US, investor nerves were rattled by renewed trade tensions. Donald Trump’s tariff announcement on April 2 reignited fears of a global economic slowdown, triggering a sharp drop in the Dow and S&P 500. Oppenheimer’s downgraded outlook marked a sharp sentiment shift on Wall Street.
Yet, Indian markets moved in the opposite direction, powered by strong domestic factors. Buying in key sectors like banking, pharma, and auto fueled a broad-based rally. Traders also highlighted a technical breakout above the Nifty’s resistance zone around 23,600.
What’s notable is the resilience shown by Indian equities despite global unease. FIIs returning to buy, combined with positive cues from Asia, helped local indices not just recover but surge to new highs. Momentum now hinges on follow-through buying and global stability.
As global markets wobble, India’s equity resilience underscores strong domestic sentiment and technical positioning, offering a near-term advantage for local investors.
“In the midst of chaos, there is also opportunity.” — Sun Tzu
