Indian markets rebound sharply after historic downturn; IT leads the charge

The Indian equity markets staged a powerful recovery on Tuesday (April 8), rebounding from the steep losses suffered a day earlier. The benchmark indices opened higher, buoyed by optimistic cues from Asian markets and opportunistic buying at lower valuations. The Sensex jumped 1,200 points (1.63 per cent) to trade at 74,327.37, while the Nifty 50 surged 371 points (1.67 per cent) to 22,532.30 in early trading.

IT top performer

A key highlight of Tuesday’s rally was the resurgence in information technology stocks, with heavyweights like Infosys (up 2.4 per cent), TCS (0.5 per cent), HCL Tech (1.5 per cent), and Wipro (1.13 per cent) witnessing strong buying interest in early trading. Bargain hunting and easing concerns over US tech spending bolstered sentiment in the sector, making IT a standout performer amid the bounce back.

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In contrast, FMCG stocks, such as Hindustan Unilever and Dabur continued to feel the pinch amid weak rural demand signals and input cost concerns. Similarly, the metal index, including players like Tata Steel and JSW Steel, came under renewed pressure due to lingering global trade tensions and demand uncertainty from China.

What's driving the recovery?

Global cues have played a key role in lifting market sentiment on April 8. Japan’s Nikkei 225 led the regional rebound with a sharp 6 per cent surge, while South Korea’s Kospi and Hong Kong’s Hang Seng also showed signs of stabilisation following recent declines. Adding to the optimism were overnight gains in US stock futures, which helped offset concerns from Monday’s volatile Wall Street session. On the domestic front, strong buying by institutional investors – who purchased equities worth Rs 12,122 crore – helped cushion the impact of continued foreign outflows amounting to Rs 9,040 crore, providing further support to the market’s recovery.

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Resilience of Indian markets

Commenting on the resilience of Indian markets, Jaspreet Singh Arora, CIO of Equentis Wealth Advisory Services, noted: “India’s domestic-driven economy remains a structural growth story, with strong corporate earnings and policy support. A market rebound is likely in two to three quarters once the tariff uncertainty settles and the US rate cycle stabilises.”

He advised long-term investors to stay disciplined, emphasising asset allocation and cautioning short-term traders to be wary of volatility.

“Stick to strict stop-losses and avoid overleveraging. Keep an eye on earnings, global cues, and institutional flows. Quality stocks will remain resilient, and dips can offer opportunities — but only with clear risk management,” he said.

Also Read: Sensex nosedives over 3,939 points, Nifty slumps 1,160 points amid Trump tariff fears

Volatility far from over

Ketan Vikram, head of Sales at Almondz Institutional Equities, added: “We expect domestic markets to consolidate at these levels, as the tariffs India would be facing will be lower compared to China and Vietnam. However, with recent corrections, valuations have become attractive, but due to global uncertainty, we expect Indian markets to remain volatile in April.”

While Tuesday’s rally highlights investor confidence and market resilience, analysts caution that volatility is far from over. Global trade dynamics, particularly the evolving US tariff policy, remain critical overhangs. The Reserve Bank of India’s upcoming monetary policy announcement is also a key event on investors' radars.