Indian Market Makes Historic Recovery, Investors Gain Rs 10.9 Lakh Crore

In an unprecedented turn of events, the Indian stock market made a remarkable recovery on Tuesday, April 15, as investors regained a colossal Rs 10.9 lakh crore in a single day. This recovery effectively wiped out the losses incurred following the US tariff shock on April 2, marking a significant milestone in the financial sector.

The Sensex, a benchmark index of the Bombay Stock Exchange, witnessed a surge of over 1,570 points, while the Nifty, the National Stock Exchange’s benchmark index, soared past the 22,300 mark. This marked one of the most substantial gains in recent months, reflecting a robust and resilient market.

The Broad-Based Recovery and Its Drivers

This recovery was not limited to a specific sector or a handful of stocks. Instead, it was broad-based, encompassing various sectors and indices. The driving force behind this rally was a combination of strong investor sentiment, positive global cues, and domestic optimism. The primary catalyst for this rally was a significant update on US trade policy.

The US administration announced a 90-day delay in tariffs for most countries, with the notable exception of China. This announcement served to calm investor nerves and reignite hopes for India’s position in global supply chains.

Financial stocks, due to their heavy weightage in the indices, led the charge, rising over 2 per cent. The midcap and smallcap indices, which had been underperforming recently, also saw a strong recovery, each rising by around 3 per cent. Market experts noted that domestic institutional investors turned aggressive buyers on Tuesday, further supporting the upward momentum. Asian markets were also firm, supported by a weaker US dollar and stable bond yields, giving Indian markets an additional boost as they reopened after an extended weekend.

India’s Position Amid Tariff War

India’s strong macroeconomic fundamentals continue to attract investor interest, apart from global cues. With robust domestic demand and limited direct exposure to US-China tensions, India is increasingly seen as a stable bet amid global uncertainties, market experts noted. While data on foreign institutional investor flows is yet to be released, early signs point to strong buying activity.

“Markets are adjusting the new reality of daily Trump twists and turns,” said Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. He added that sometimes when tariffs look like they have been temporarily removed, the markets will react positively, when something unexpected happens they will react negatively.