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Markets Recover from Trump-Induced Slump, Nifty Ends Above 22,700

Indian equity benchmarks staged a recovery from steep opening losses to close in positive territory, with the Sensex gaining 185 points and the Nifty ending above 22,700. The session was highly volatile, driven by geopolitical tensions after a speech by former US President Donald Trump, which triggered a global risk-off sentiment. A sharp 8% surge in Brent crude oil prices to $109 per barrel added to inflation concerns, while most Asian markets closed significantly lower. Market participants are now looking ahead to the RBI's monetary policy meeting for direction, with trading paused for the Good Friday holiday.

Key Points: Sensex Gains 185, Nifty Above 22,700 Amid Volatility, Crude Surge

  • Markets recovered from sharp opening losses
  • Crude oil surged 8% to $109/barrel
  • Nifty IT was the top gaining sector
  • Volatility expected to persist amid geopolitical risks
  • Focus shifts to upcoming RBI policy meeting
3 min read

Markets recover from opening losses Nifty ends above 22,700, Sensex gains 185 amid volatility, crude surge

Indian stock markets recovered from early losses to close higher despite global tensions and a surge in crude oil prices. Key sectors and expert analysis inside.

"So long as the Middle East remains a live powder keg, markets will continue to trade on headlines rather than fundamentals. - Vinod Nair"

Mumbai, April 2

The stock markets recovered from early losses on Thursday and ended the session in the green, reflecting resilience in investor sentiment despite global uncertainties.

The Nifty 50 index closed at 22,713.10, gaining 33.70 points or 0.15 per cent, while the BSE Sensex settled at 73,319.55, up by 185.23 points or 0.25 per cent.

Markets had opened on a weak note amid rising geopolitical tensions. However, a recovery during the day helped indices close with gains.

Vinod Nair, Head of Research at Geojit Investments, said, "Indian equity markets opened on the back foot as Trump's renewed threat to strike Iran "extremely hard". Selling was widespread across all sectors, with IT being the lone exception. A short-covering-driven intraday recovery followed, though it lacked the depth of genuine conviction. So long as the Middle East remains a live powder keg, markets will continue to trade on headlines rather than fundamentals, keeping volatility elevated and directional clarity elusive."

The indices Sensex and Nifty plunged over 2 per cent in the opening session on Thursday as Trump's speech gave no timeline for the conflict to end.

The session remained volatile as global concerns weighed on sentiment. Brent crude oil prices surged by around 8 per cent on Thursday to USD 109 per barrel, raising concerns over inflation and economic stability.

In the broader Asian markets, most indices closed lower. Japan's Nikkei 225 index fell by 2.73 per cent to 52,314, South Korea's KOSPI declined by 4.67 per cent to 5,234, Hong Kong's Hang Seng index dropped by 0.66 per cent to 25,127, and Taiwan's weighted index lost 1.85 per cent to close at 32,572.

On the sectoral front, a mixed trend was observed on the NSE. Nifty IT emerged as the top gainer, rising by 2.60 per cent. Nifty Metal gained 0.39 per cent, and Nifty FMCG rose 0.21 per cent. However, Nifty Auto declined by 0.62 per cent, while Nifty Pharma and PSU Bank indices also ended in the red. Nifty Oil and Gas index slipped by 0.79 per cent.

In the commodities market, gold prices declined by 3.26 per cent to Rs 1,48,700 per 10 grams for 24 karat amid high volatility. Silver prices also fell sharply by more than 6 per cent to Rs 2,28,821 per kg.

Market participants are now closely watching key developments in the coming week. The Reserve Bank of India's Monetary Policy Committee (MPC) meeting will be a major focus area, with expectations of a rate pause. However, investors will track the central bank's commentary on inflation, growth outlook, and policy direction.

Trading activity will remain paused on Friday due to the Good Friday holiday, and markets will resume next week.

- ANI

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Reader Comments

P
Priya S
Volatility is the name of the game right now. One tweet from a foreign leader and our markets swing 2%. It's exhausting for retail investors like me. Glad to see IT stocks holding up, but the surge in crude is a major worry for everything from petrol prices to inflation. 🛢️📉
V
Vikram M
The analyst Vinod Nair hit the nail on the head - "trading on headlines rather than fundamentals". This lack of conviction in the recovery is concerning. We need stability, not these knee-jerk reactions. Hope the long weekend gives everyone some time to reflect.
S
Sarah B
Interesting to see the divergence with other Asian markets. While Japan and South Korea fell sharply, India managed to end green. Shows some decoupling, but can it last if crude stays high? The drop in gold and silver is surprising amidst the geopolitical tension.
R
Rohit P
As a salaried person, my main worry is inflation. Petrol prices will shoot up again with this crude surge. The stock market gains mean little if the cost of living keeps rising. RBI really has a tough job balancing growth and controlling prices.
K
Karthik V
While the recovery is good news, let's be honest - the volatility is hurting small investors the most. The institutions can ride it out, but many retail folks panic sell at the bottom. We need better financial literacy and less sensationalism in business news coverage.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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