Indian Bulls Break Chains! Nifty, Sensex First in World To Reclaim April 2 Levels After Trump's Tariffs Shock

Stock Market Today: Nifty and Sensex outshined the global peers on Tuesday and successfully reversed the impact of United States President Donald Trump's tariffs announcement on April 2.

Nifty 50 index surged nearly 2.12% and ended 23328 points on Tuesday, whereas 30-member BSE Sensex ended the trading session at 76,734.89 points. The stock market rally was fuelled by recovery in auto, banking and even IT stocks. Major auto and auto ancillary stocks, including Tata Motors, Samvardhana Motherson rallied up to 8% today. Nifty Bank opened at its 4-month high mark and closed the session 2.7% higher.

The stellar stock market rally in India has come nearly a fortnight after Donald Trump announced tariffs on more than 180 nations on April 2, which he termed as 'Liberation Day'. Last week, Donald Trump took a u-turn on US tariffs and announced a 90-day pause on tariffs. All the nations will face lesser tariffs during the period, except China, which will continue to face up to 145%. China has retaliated against Trump tariffs by imposing 125% tariffs on all goods.

Indian Stock Market Recovers from Trump Tariffs Shock

BSE Sensex and Nifty 50 have recovered from the market meltdown triggered due to Donald Trump's trade tariffs announcement on April 2. Sensex opened at 76,146.28 on April 2 and closed the session nominally higher at 76,617.44 points, as the market investors were waiting for Trump tariff announcement later in the day. The stock market index reacted to his US tariffs announcement and opened lower at 75,811.86 next day.

BSE Sensex declined nearly 4% and opened at 71,449.94 creating panic among investors on April 6.Stock market mayhem led many investors refer to the downfall as Black Monday Crash. Just like its Indian counterpart, Nifty 50 opened at 23,192.6 points on April 2 and continued to fall till Black Monday crash on April 7. After that, the benchmark index reversed its losses and ended Tuesday's session 23,328.55, higher than April 2 levels.

"Amongst sectors, Realty index was the top gainer (up 5%), boosted by the second straight 25 bps rate cut by the RBI%. Nifty Auto soared 3.3% as shares of automobile manufacturers, auto component and tyre companies gained significantly after US signalled potential tariff exemption for the automotive sector," noted Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd underlining the impact of Trump tariffs relief and RBI rate cut on Indian stock market.

Sharing insight on expectations of above-normal monsoon in India and its positive impact on market, Khemka added, "The IMD has predicted above-normal rainfall for India this monsoon, with cumulative rainfall estimated at 105% of the long-period average of 87 cm. This is expected to benefit fertilizer, auto (two-wheeler) and rural consumption stocks. On the macro front, India's Wholesale Inflation (WPI) for March fell to four-month low of 2.05% against 2.38% in February."

While sharing his insight on the stock market rally's sustainability, Khemka said, "We expect positive momentum to continue in the market, on hopes of global trade settlements and softening in US reciprocal tariffs."

Indian Stock Market First Across Globe To Reverse Trump Tariff Loss

With Tuesday's stock market rally, Nifty and Sensex have emerged as the only major stock market indices across the world to have recovered from the losses they made after Trump tariff announcement on April 2. Here's how major global stock market indices including S&P 500, Dow Jones Industrial Average, Nasdaq Composite, FTSE 100, Hang Seng Index, Nikkei 225, etc are performing since Trump tariffs announcement.

Stock Market Index	April 2 Levels (Opening)	April 14/15 Levels (Closing)
S&P 500	5580	5405
Dow Jones Industrial Average	41736	40524
Nasdaq Composite	17207	16831
FTSE 100	8634	8196
Hang Seng Index	23167	21466
Nikkei 225	35751	34267
Sensex	76146	76734
Nifty	23192	23328

The reversal in stock market losses has come after Donald Trump announced a temporary relief on tariffs on imported phones, computers and other consumer electronics. Bullishness in auto sector stocks was the result of Trump's hint of a possible exemptions on tariffs for imported vehicles and auto parts.