Sensex Surges Past 74,000: What's Driving the Bull Market Amid Global Uncertainty?

Market Overview

Mumbai: On Tuesday, Indian stock indices opened positively, buoyed by major players such as Titan, Tata Steel, and Adani Ports, despite ongoing global uncertainties related to US tariffs.

As of 9:21 AM, the Sensex had risen by 1,169 points, or 1.60%, reaching 74,307, while the Nifty increased by 375 points, or 1.69%, to 22,536.

Both midcap and small cap indices also saw gains, with the Nifty midcap 100 index climbing 1,094 points (2.24%) to 49,903, and the Nifty smallcap 100 index rising 356 points (1.75%) to 15,424.

Sector-wise, all indices were performing well, with significant gains in PSU Bank, financial services, metals, real estate, energy, private banking, and infrastructure.

Among the top performers in the Sensex, Titan, Adani Ports, Tata Motors, Bajaj Finserv, SBI, Axis Bank, UltraTech Cement, Tata Steel, IndusInd Bank, Zomato, Bajaj Finance, and NTPC stood out, while TCS was the only stock in the negative.

Market analysts suggest that the current global volatility and uncertainty are likely to persist for a while longer.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The trade conflict appears to be primarily between the US and China, with other regions like the EU and Japan opting for negotiations. India has initiated talks on a Bilateral Trade Agreement with the US. Additionally, the risk of a US recession has escalated, and China may face the most significant economic impact.”

Investors are expected to adopt a cautious approach as they await clearer signals.

Asian markets showed positive trends, with Tokyo, Shanghai, Hong Kong, and Seoul all trading higher, while US markets closed lower on Monday due to recession concerns.

In terms of institutional trading, foreign institutional investors (FIIs) have been net sellers for six consecutive sessions, offloading equities worth ₹9,040 crore. Conversely, domestic institutional investors (DIIs) have been net buyers, acquiring equities worth ₹12,122 crore.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, mentioned that traders are closely monitoring the RBI's anticipated 25 basis points rate cut on April 9 and the upcoming corporate earnings report from TCS on April 10.