Stock Market Today: BSE Sensex Starts Over 200 Points Up; Nifty50 Surpasses 23,200
On Wednesday, the Indian equity benchmark indices, BSE Sensex and Nifty50, began trading in green territory. The BSE Sensex rose by more than 200 points, while the Nifty50 surpassed 23,300. At 9:20 AM, the BSE Sensex was trading at 76,199.97, up 175 points or 0.23%. The Nifty50 was at 23,201.30, up 36 points or 0.15%.
Expected Market Volatility
During the first trading day of the new financial year, the Indian equity markets experienced significant losses, with benchmark indices dropping by 1.5% due to concerns about US President Donald Trump’s reciprocal tariff proposals. Analysts predict continued market volatility in the coming days as global trade policies remain a focus.
Expert Insight
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated, “The uncertainty regarding reciprocal tariffs is expected to decrease with the tariff declaration today. However, considering Trump’s previous flip flops on tariffs, the uncertainty is likely to persist beyond today. It appears that FIIs turning buyers in the last several trading days of March was due to end of year considerations. The short-covering triggered by FII buying contributed to India’s outperformance in March. Now, with FIIs selling for Rs 10255 crores in the cash market in two days, the shorting has resumed. This was reflected in the 353 point sharp cut in Nifty yesterday. Investors can wait for clarity regarding tariffs and market trends. If the tariffs are worse-than-expected, there may be another round of sell-off in the market. Even in such a scenario, domestic consumption-driven sectors will remain resilient.”
Global Market Developments
The US trading session on Tuesday ended with gains for the S&P 500 and Nasdaq Composite, despite fluctuations caused by investor uncertainty regarding upcoming tariff announcements from the Trump administration.
Asian markets showed weakness as investors remain cautious ahead of Trump’s tariff announcement.
Commodity Prices
Gold prices increased on Wednesday as investors sought refuge in the safe-haven asset, anticipating announcements regarding US reciprocal tariffs that could escalate the global trade conflict.
Oil prices stabilized on Wednesday following the previous session’s decline, with concerns that upcoming US tariff announcements could worsen global trade tensions and potentially impact crude demand.
Foreign Portfolio Investors
Foreign portfolio investors registered net sales of Rs 5,902 crore on Tuesday, while DIIs purchased shares worth Rs 4,322 crore.
FIIs’ net short position increased from Rs 49,007 crore on Friday to Rs 66,578 crore on Tuesday.
