Indian Markets Set for Strong Upside as Dow Soars and US Tariff Pause Sparks Global Rally.
Source : Tradingview
After a weak close in Indian markets yesterday, global cues have flipped the mood entirely overnight. The U.S. markets staged one of their biggest single-day rallies in recent history, setting the tone for a strong opening in India today. Let’s unpack all the signals influencing the market today.
Global Cues & Market Sentiment
Wall Street just made history!
In one of the strongest sessions in recent memory, all three major U.S. indices posted massive gains on the back of a surprising tariff policy announcement:
| Index | Close | % Change |
|---|---|---|
| Dow Jones | 40,608 | +7.87% |
| S&P 500 | 5,456 | +9.5% |
| Nasdaq | 17,124 | +12.2% |
Nasdaq posted its biggest one-day rally since January 3, 2001 — and its second-largest ever!
What sparked the rally?
The U.S. President declared a 90-day tariff hiatus for most trading partners, although tariffs on Chinese imports were raised to 125%. This surprise move was like rocket fuel for investor sentiment globally.
Market Takeaway:
A pause in tariffs provides short-term relief to global trade flows and is a sign of diplomatic receptiveness. Investors took this as a bullish macro signal, leading to a huge risk-on rally all-around.
Wall Street brought a record-breaking rally on Wednesday evening. Dow Jones jumped by 2,962 points, or 7.87%, closing above 40,000 for the first time at 40,608. S&P 500 also recorded a spectacular rise of 9.5%, while Nasdaq jumped a whopping 12.2% to close at 17,124. This is Nasdaq‘s largest one-day increase since January 3, 2001, and the second-largest in history.
This ecstatic rally was propelled by a shock revelation from the U.S. President, who announced a 90-day tariff pause for a number of countries, despite tariffs on Chinese exports being significantly raised to 125%. The action was sudden and immediately welcomed by investors, as it indicated a temporary softening in global trade tensions. Consequently, risk-on sentiment regained its footing aggressively, driving equity markets around the world.
What It Means for Indian Markets
Here‘s why this news is important for Indian equities:
- Strong Global Tailwind: Indian markets tend to follow Wall Street, and such euphoria can lead to strong gap-up openings.
- Export Sectors in Focus: Sectors such as IT, Pharma, and Chemicals could gain as global trade sentiment improves.
- Risk-On Appetite: As volatility cools across the globe, foreign fund flows can stabilize in the near term
India is likely to open higher today, driven by good global momentum. The tariff pause is good news for world trade, and global-exposed sectors from India—such as IT, Pharma, and Chemicals—could be in the limelight. A rally of such a scale in U.S. markets tends to spill over into Asia, and Indian traders will certainly take cues from the optimism. However, while the sentiment is strongly bullish, we should remain cautious of potential volatility later in the day, especially around key resistance levels.
Gift Nifty (SGX Nifty ) 10 April 2025
GIFT Nifty opened with a bang this morning, reflecting the euphoric global sentiment after the U.S. announced a 90-day pause on tariffs. It started at 23,270.5 and soon zoomed to intraday high of 23,437.5, before closing around 23,390.0 — up by a staggering 903 points or 4.02%. The intraday low came at 22,295.5, but good buying ensured the momentum was strictly on the upside. This gap-up strongly suggests a great start for Indian markets, with Nifty 50 perhaps reaching record-high levels. Global optimism is obviously spilling over into Indian equities, setting the stage for a bull run in the session to come.
Nifty 50 Previous Day Recap – April 9, 2025
The promising start made by Indian indices yesterday was ruined by profit booking and poor overseas cues.
Despite a promising start, Indian indices slipped into the red yesterday due to profit booking and weak global cues.
The selling pressure was visible across sectors, and large-cap stocks bore the brunt.
Top Gainers – Nifty 50
| Stock | Price (₹) | % Change |
|---|---|---|
| Nestle India | 2,350.00 | +3.28% |
| HUL | 2,349.00 | +2.61% |
| Titan | 3,178.95 | +1.81% |
| Power Grid | 294.10 | +1.78% |
| Tata Consumer | 1,087.55 | +1.66% |
Top Losers – Nifty 50
| Stock | Price (₹) | % Change |
|---|---|---|
| Wipro | 236.80 | -4.23% |
| SBI | 742.45 | -3.40% |
| Tech Mahindra | 1,270.95 | -3.31% |
| L&T | 3,062.00 | -3.13% |
| Trent | 4,625.70 | -2.97% |
Nifty 50 Sector Snapshot
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IT: -2.19% (dragged by Wipro, Infosys, TCS)
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PSU Banks: -2.52% (worst performer)
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Pharma & Realty: ~-2%
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Healthcare, Media: > -1% each
On Wednesday, Indian markets closed in the red, dragged by profit booking and weak global cues. The Nifty 50 fell by 124 points (-0.56%) to close at 22,147, while the Sensex lost 410 points, settling at 72,930. Large-cap stocks saw broad-based selling, and the market mood remained cautious throughout the session.
On the gainer’s side, defensive stocks showed relative strength. Nestle India led the charts with a gain of 3.28%, followed by HUL, Titan, Power Grid, and Tata Consumer. However, the broader market was dominated by losers. Wipro plunged 4.23%, SBI fell 3.40%, and Tech Mahindra, L&T, and Trent also posted significant declines.
Almost all sectors ended in the red. IT stocks took a beating, falling 2.19%, while PSU banks were the worst hit, down 2.52%. Other sectors like Pharma, Realty, Healthcare, and Media also fell by over 1%, leaving no clear safe haven for investors.
FII-DII Data – April 9, 2025
| Participant | Net Value (₹ Cr) |
|---|---|
| FII | -4,358.02 |
| DII | +2,976.66 |
Foreign Institutional Investors (FIIs) continued their selling spree with outflows worth ₹4,358.02 crore. On the other hand, Domestic Institutional Investors (DIIs) remained net buyers, infusing ₹2,976.66 crore into the markets. While DII buying offered some cushion, it couldn’t fully absorb the heavy foreign selling pressure, which contributed to the negative sentiment in the previous session.
Open Interest (OI) View
Normally, OI data plays a big role in predicting the day’s range. But today, global news has taken over. Still, some notable levels are:
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Call Writers Active: 22,400–22,500
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Put Support Levels: 22,000–22,100
Typically, OI data gives us a good idea of intraday range expectations. But today, given the overwhelming influence of global news, the significance of OI levels may diminish. That said, we are still observing heavy call writing around the 22,400–22,500 levels and put support near 22,000–22,100. If the market gaps up, these resistance levels could be tested or even crossed quickly.
India VIX – Volatility Tracker
India VIX stands at 21.5150, indicating elevated volatility levels. Despite the bullish global cues, this suggests that traders are still cautious and large swings can’t be ruled out intraday.
Our Opinion for Today
The stage looks set for a powerful rally in Indian equities today. With GIFT Nifty indicating a strong 4% gap-up and global markets—especially the Dow Jones—posting historic gains, sentiment is decisively bullish. The U.S. government’s surprise 90-day tariff pause has acted as a big catalyst, sparking a global risk-on rally. For India, this translates into renewed strength in export-heavy sectors, IT, and manufacturing. However, with India VIX hovering above 21, some volatility is still on the cards. While the momentum is clearly on the upside, traders should remain alert and avoid chasing extended moves. Overall, today could be a breakout day, especially if follow-through buying sustains beyond the first hour.
🔹 Gap-up opening expected
🔹 Export & Global-linked sectors in focus
🔹 OI data may lose relevance today
🔹 Profit booking likely at higher levels
“Let the market show its hand. Avoid aggressive trades early on. Ride the strength, but don’t marry the rally.”
Market will be driven by global sentiment rather than technical levels. The massive rally in the U.S. has turned market mood decisively bullish. We expect a strong gap-up opening in India, led by export-linked and globally exposed sectors. However, traders should be cautious of profit booking at higher levels, especially after such a euphoric global move.
Also Read : Nifty Drag Amid Global Uncertainty & RBI Rate Cut – Post-Market Wrap| April 9, 2025
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