Sensex, Nifty up Following Three-Day Losing Spree

Indian benchmark indices surged on April 8 following a three-day declining spree. There are hopes that India would be impacted moderately by the retaliatory tariffs. Brent crude dropped to $64 a barrel level and the Indian economy seems to be performing better than the emerging markets.

Investors are also keeping a close watch on the upcoming RBI policy and earnings season from April 10.

According to Kotak Institutional Equities, the performance of the Indian market would depend on the response of various countries to the US’s reciprocal tariffs in the form of reconciliation or retaliation (China).

“The Indian market has held up better so far, based on investors’ (1) denial of the increased geopolitical, global and domestic macroeconomic and sector-specific risks, faith in a reversal in the tariff and trade policies of the US and belief that India is relatively better off in the ‘reciprocal’ regime,” Kotak said.

BSE traded at 74,660.32, up 1,522.42 points or 2.08%, while Nifty came at 22,642.10, up 480.50 points or 2.17%.

MOFSL said while India itself has been subjected to a 26 per cent reciprocal tariff, as few Asian peers face higher levels of tariffs – such as China: 54 per cent, Vietnam: 46 per cent, Sri Lanka: 44 per cent, Bangladesh: 37 per cent, Thailand: 36 per cent and Taiwan: 32 per cent.

“Further, India may negotiate a bilateral trade agreement (BTA) with the US,” it said.