Following a sharp drop yesterday, Indian financial markets did a strong comeback on April 8, 2025. While the NSE Nifty increased by 380 points (1.71%) to 22,540, the BSE Sensex increased by 1,201 points (1.65%) to 74,339 as well. 

Both small-cap and mid-cap stocks gained more with the small-cap index gaining by 2.14% and the Nifty Midcap 100 gaining more by 1.93%. With the BSE’s complete market capitalization rising by about Rs 6.9 lakh crore to Rs 396.11 lakh crore from Rs 389.25 lakh crore yesterday, investor wealth increased significantly. The indices were raised in large part by big companies like HDFC Bank, ICICI Bank, Infosys, Bharti Airtel, SBI, Larsen & Toubro, and Axis Bank.

Global Market v/s Indian Market

Global belief adversely affected by tension about the emerging trade disputes between the United States and China, even though the markets had a positive day. The unwanted fluctuation was caused by the U.S. President Donald Trump’s warning to levy an additional 50% tariff on Chinese imports until and unless Beijing reverses its reciprocal actions. China responded by pledging to keep battling, which increased concerns about a predicted trade war between the two biggest economies at a global level.

The Indian stock market showcased resilience in spite of the pressure on the global stock markets because of sectoral strength and internal reasons. As opposed to international unpredictability, the Indian economy’s emphasis on fiscal stimulus, infrastructure expansion, and rising consumption continues to attract interest from investors.

FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors):

According to stock exchange figures, Domestic Institutional Investors (DIIs) purchased shares valued at Rs 12,122 crore, giving the market significant rise. However, in the previous session, Foreign Institutional Investors (FIIs) wiped out Rs 9,040 crore from Indian stocks, rendering them net sellers. Contradictory sentiment was visible in the difference in purchasing and selling activities between FIIs and DIIs. Foreign investors are still worried because of the ongoing trade tensions and global economic variability, even though local investors expressed confidence in India’s growth story.

Expert Analysis and Market Prospects: 

According to Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd., the Nifty is expected to hit a crucial support level at 21,281. He pointed out that the market may continue to be impacted by global uncertainty, especially the trade tensions between the United States and China. He did point out that domestic variables, such as the RBI’s predicted rate decrease and the strong corporate profits beginning with TCS on April 10, would act as a barrier against the decline.

Additionally, Tapse said that investors should remain cautious, especially with stocks that have been through significant price fluctuations. Stocks like Mahindra & Mahindra (M&M), Oberoi Realty, and Adani Enterprises, for example, are under declining pressure, with Adani Enterprises rising from the overbought zone.

Market Breadth and Technical Analysis

With 2,618 stocks gaining and 410 declining the market breadth stayed positive. Another 104 stocks did not move at all. Given that the majority of stocks participated in the surge, this implies that the overall market was in the bulls’ favor.

The Nifty is currently facing resistance close to the 22,800 mark from a technical point of view. While a decline below 21,281 indicates possible merger or a short-term decline, a breakout more than this might indicate a rise. The RBI’s monetary policy decision on April 9 is being closely watched by analysts since a rate drop would give the market more support.