Indian Markets Stage Strong Rebound, Snapping 3-Day Losing Streak
Indian equity markets saw a significant turnaround on Tuesday, April 8th, putting an end to a three-day losing streak with decisive gains across the board. This sharp rebound followed a severe sell-off the previous day (April 7th) which had erased a reported Rs 16 lakh crore in market capitalization. Despite the strong recovery, analysts suggested maintaining a degree of caution due to ongoing uncertainties related to international trade tariffs.
Broad-Based Gains and Easing Volatility
The positive sentiment was evident from the start and sustained through the session. The S&P BSE Sensex closed with a substantial gain of 1,089.18 points, or 1.49%, settling at 74,227.08. The NSE Nifty 50 performed even better in percentage terms, rising 374.25 points, or 1.69%, to finish at 22,535.85. Market breadth was overwhelmingly positive, with approximately 2,968 shares advancing against 843 declining shares, indicating widespread participation in the rally.
A notable sign of easing immediate anxiety was the significant drop in India's volatility index, the India VIX. Often called the "fear gauge," the VIX cooled down by over 10% to hover around the 20 mark. This came as a relief after it had spiked dramatically by as much as 66% the previous day, reaching a five-year high.
Sectoral Recovery Led by IT
Encouragingly, all 13 major sectoral indices finished the day in positive territory, most gaining around 2%. The Nifty IT index, which had been under considerable pressure recently (down 8% over the prior five sessions), led the recovery. Major technology stocks like TCS, Infosys, HCL Tech, and Wipro saw gains of up to 4% during the session, potentially fueled by anticipation as the sector prepares to kick off its March-quarter earnings reporting in the coming days.
Following the IT sector's lead, substantial gains were also seen in the Nifty Realty, Nifty Pharma, and Bank Nifty indices, each climbing up to 2%. The broader market segments also reflected the positive trend, with the Nifty Midcap 100 and Smallcap 100 indices rising strongly by 2.3% each.
Key Stock Highlights
Several individual companies were in focus:
- Oil Marketing Companies (OMCs): Shares of HPCL, BPCL, and IOC surged. This was linked to a government decision to increase household LPG prices and the special excise duty on petrol and diesel. Sources suggest this move could help OMCs recover around Rs 9,000 crore in FY26, offsetting recent losses.
- Info Edge: The parent company of Naukri.com saw its shares rise nearly 5% after reporting strong standalone billings growth of 19% for the January-March 2025 quarter (Q4FY25), reaching Rs 983.8 crore compared to Rs 826.9 crore in Q4FY24.
- Electronics Manufacturing Services (EMS): Stocks in this sector gained up to 9% following reports (notably in the Wall Street Journal) that Apple is considering sourcing more iPhones from India to the US as a strategy to mitigate the impact of tariffs imposed on goods from China.
Top Movers
The top gainers on the Nifty 50 index included Jio Financial Services, Shriram Finance, Titan Company, Cipla, and Bharat Electronics. Power Grid Corp was the sole constituent to end the day marginally lower.
