Nifty 50 Index rose more than 280 points or 1.20 percent to trade around 22,800 from yesterday’s close of 22,500, some of the top gainers in the Index were Shriram Finance, Hindalco, and Mahindra & Mahindra all rising more than 3 percent. Sensex rose more than 950 points and the Bank Nifty Index by 800 points or 1.65 percent.
Top Sectoral Performers were Realty, Auto, and Metal with major constituents rising by more than 3 percent. Nifty Small Cap 250 Index gained over 2 percent and the Mid Cap 150 also by 2 percent.
Major Reason for the Rise
Nifty is trading at comfortable Valuations with a current PE of 20 which has also acted as historical support. The 15 percent decline of Nifty from its 52-week high will act as support for further Upside potential and the USDINR March future fell 0.21 percent today to trade around Rs. 86.67 further the Dollar Index has declined significantly from its year high of 110 to trade around 103.
Trump tariffs have been a major concern for markets worldwide, but a major fall because of the tariffs already seems to be discounted as both Chinese and Indian markets seem to stabilize.
Hopes of an RBI repo rate cut of 25 basis points (bps) in the upcoming meeting in April are high, which will act as a major boost for the Economy. According to SBI Research, the RBI in total is expected to slash 75 basis points (bps) in 2025, with 25 bps cuts each in April, June, and October meetings.
Also read: Auto Ancillary stock jumps 5% after promoter increases stake in the Co.
Important Index Levels
The 50-day moving average on daily charts can act as a major resistance at 23,000 Levels. Further on the downside, Nifty Gave a breakout of 22,500 after several tries which can act as short-term support.
Major Reasons for Market Decline
The Indian stock markets have been under pressure due to continuous selling by Foreign Institutional Investors (FIIs). One of the key reasons is the strengthening of the US dollar, which makes emerging markets less attractive. Additionally, concerns over a slowdown in corporate earnings growth, global economic uncertainties, high valuations of Indian stocks compared to other emerging markets, and trump tariff risks have further contributed to the market decline.
Written By Abhishek Das
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