Sensex snaps 3-day losing streak, surges 1,089 pts amid global relief rally; caution lingers

Indian equities staged a strong comeback on April 8, ending a three-day losing streak with broad-based gains across all sectors. The Sensex surged 1,089 points to close at 74,227.08, while the Nifty jumped 374 points to settle at 22,535.85. Market sentiment, battered by a sharp selloff the previous day that erased Rs16 lakh crore in market capitalisation, found temporary relief as all 13 sectoral indices ended nearly 2 per cent higher.

According to a Moneycontrol report, trading activity on the day was heavily skewed in favour of gainers. As many as 2,968 stocks advanced, with just 843 declining and 115 remaining unchanged. This turnaround reflected renewed optimism, albeit tempered by an undercurrent of caution, as volatility remained a key concern. India’s volatility index, the India VIX, dropped by more than 10 per cent to hover around 20 after having spiked 66 per cent on April 7 to hit a five-year high, a surge that had unnerved many investors.

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VK Vijayakumar of Geojit Investments told Moneycontrol that investors are likely to remain in a wait-and-watch mode, waiting for clearer cues amid global trade tensions. However, with India’s macroeconomic fundamentals appearing sound and the economy expected to grow at around 6 per cent in FY26, Vijayakumar suggested that long-term investors could consider selectively entering high-quality large-cap stocks, particularly in the financial and pharmaceutical sectors. He also noted that pharmaceutical companies remain attractively priced, with some relief stemming from the perception that the US may refrain from imposing new tariffs on drug imports for now.

Broad-based gains

The rally on Tuesday was not limited to large caps alone; mid- and small-cap indices also rose by over 2 per cent each, reflecting widespread participation. Among the key contributors to the upswing were information technology stocks, which led the rebound after several sessions of heavy losses. Heavyweights such as TCS, Infosys, HCL Technologies and Wipro climbed up to 4 per cent as investor sentiment turned more constructive ahead of their quarterly earnings announcements.

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Sectors like real estate, banking and pharmaceuticals each gained nearly 2 per cent. Notable momentum was seen in the stocks of oil marketing companies like Hindustan Petroleum, Bharat Petroleum and Indian Oil, the Moneycontrol report said. Their gains followed the government’s move to increase the price of household LPG cylinders and raise special excise duties on fuel. These measures are expected to help oil companies recover close to Rs 9,000 crore in FY26, partially offsetting their ongoing financial pressures.

Electronics Manufacturing Services (EMS) stocks also saw heightened activity, gaining around 9 per cent amid reports from the Wall Street Journal that Apple is planning to source more iPhones from India. The US tech giant is reportedly considering this strategy to bypass tariffs on Chinese imports offering a potential boost to India’s electronics production ecosystem.

Caution despite optimism

Despite the rebound, market strategists emphasised caution as the recent spike in the India VIX continues to serve as a stark reminder of the fragility underpinning current sentiment. Sameet Chavan of Angel One commented that technical indicators pointed to potential downside if key support levels around 22,000 on the Nifty were breached.

Concerns are also being raised over external risks. Chetan Ahya of Morgan Stanley told Moneycontrol that while India’s domestic fundamentals remain resilient, the country could still experience a slowdown of up to 50 basis points in GDP growth if global tariff tensions continue to escalate.

Global markets make fragile rebound amid tariff turmoil

Across global financial markets, a similar narrative played out on April 8: a fragile recovery after days of intense sell-offs. World equities rebounded after a prolonged rout that had wiped out trillions in market value. Asian, European and US markets all showed signs of stabilisation, although investors remained wary of the persistent uncertainty surrounding trade policies, especially those emanating from Washington.

According to Reuters, in Asia, stock indices rose from multi-month lows. The Nikkei 225 in Japan climbed 6 per cent as markets responded positively to signals that US might be open to trade negotiations, with Treasury Secretary Scott Bessent reportedly tasked with spearheading talks with Tokyo. Other regional markets, however, remained under pressure. Taiwan’s index fell 5 per cent, reflecting its exposure to chip exports amid rising trade barriers. Thailand and Indonesia, both returning from public holidays, posted declines of 6 and 9 per cent respectively, reflecting delayed reactions to the earlier global turmoil.

European markets also staged a modest recovery. Bourses in London, Paris and Frankfurt were each up over 1 per cent after hitting 14-month lows. Analysts at National Australia Bank noted that glimmers of diplomatic willingness from the US were helping to calm markets, particularly in relation to Japan and the European Union.

Volatility and safe havens reflect ongoing jitters

Even though stocks showed some stability, market volatility stayed high. The VIX, a key measure of market fear, was around 44 after spiking above 60 on April 7, highlighting ongoing investor anxiety—especially about a possible global trade war, Reuters said.

Currency markets echoed this nervousness. The US dollar stayed weak, while investors moved into safer currencies like the yen and Swiss franc, both at six-month highs. The euro and British pound also rose and the Chinese yuan briefly hit a two-month low before slightly recovering.

In commodities, gold rose 0.8 per cent to $3,006 per ounce, still below its recent high of $3,167. Oil prices were steady, with Brent crude at $63.71 and US crude near $60. Bitcoin gained 1.2 per cent, trading just under $80,000 after bouncing back from a five-month low.

Global sentiment in flux

The broader concern remains that the escalating trade tensions, especially those involving the US, could fundamentally alter the investment climate. In a candid interview with France Inter radio, Stephane Boujnah, CEO of pan-European exchange operator Euronext, suggested that the US now exhibits characteristics more commonly associated with emerging markets. Boujnah also observed that the exodus of capital from the US into Europe was reflective of this changing global sentiment with many investors now recalibrating portfolios to hedge against erratic policy shifts and the potential for prolonged trade confrontations.

While markets in India and across the world managed to find some relief on April 8, the underlying volatility and persistent geopolitical risks might make people wonder whether this is a temporary reprieve or the beginning of a sustained turnaround. Whether the worst has passed or more turbulence lies ahead will depend heavily on diplomatic progress and policy clarity in the days to come.