Trump Tariffs Caused a Sharp Drop in Sensex; Rebounded in 4 Sessions
Market Surge: Sensex up by 1,509 points, Nifty up by 414 points
Market Recovery
After a significant decline, the Indian stock market experienced a strong rebound. The Sensex rose by 1,509 points (1.96%) to close at 78,553, while the Nifty increased by 414 points (1.77%) to close at 23,852. The banking and financial services sectors saw the most buying activity.
Reasons Behind the Market Rally
- Temporary Tariff Relief: U.S. President Donald Trump's temporary 90-day tariff relief boosted discussions for a bilateral trade agreement between India and the U.S.
- Competitive Advantage: Unlike China, India received tariff exemptions, providing a short-term competitive advantage to Indian exporters.
- Foreign Investment: Foreign investors purchased shares worth ₹3,936 crore on April 16, while domestic investors sold shares worth ₹2,512 crore.
Global Market Trends
On April 16, U.S. markets saw declines: Dow Jones fell by 699 points (1.73%), Nasdaq Composite by 516 points (3.07%), and S&P 500 by 121 points (2.24%).
Asian markets showed mixed results: Japan's Nikkei rose by 457 points (1.35%), Korea's KOSPI increased by 23 points (0.94%), China's Shanghai Composite gained 0.13%, and Hong Kong's Hang Seng Index climbed by 1.61%.
Two Major Market Updates
1. Wipro's Q4FY25 Results
Wipro's Q4FY25 consolidated net profit increased by 26% year-on-year to ₹3,570 crore. Despite this growth, the stock declined by approximately 6% following the announcement.
2. U.S. Imposes 245% Tariff on China
The U.S. announced an additional 100% tariff on Chinese imports, bringing the total tariff to 245% on certain items like electric vehicles. This move escalates the ongoing trade tensions between the U.S. and China.