The week witnessed extraordinary volatility in Indian markets, with indices swinging between steep losses and sharp recoveries. U.S. trade policy developments, domestic monetary policy decisions, and corporate earnings results created a turbulent trading environment across sectors.
Market Snapshot
The Indian equity markets experienced dramatic fluctuations throughout the week. After starting with a severe plunge on April 7, when the Sensex fell by 2.95% and the Nifty 50 dropped 3.24%, markets rebounded significantly by April 11, with the Sensex surging 1,310 points to 75,157.26 and the Nifty 50 rising 429 points to 22,828.55.
Sectoral Highlights
Metals: Metal stocks emerged as top performers during the mid-week rally, with Hindalco Industries, Tata Steel, and JSW Steel gaining between 5% and 6%, benefiting from tariff relief and a weaker dollar.
Information Technology: The IT sector showed mixed performance, with Wipro shares rising by 1.81% to ₹247.25 on April 8, while the broader IT index declined by 3% by April 9. TCS shares fell 1% to ₹3,212.10 following disappointing Q4 results, though it outperformed peers during the tech sell-off earlier in the week.
Banking: Axis Bank shares fell 1.47% to ₹1,061.65 on April 9, underperforming the BSE Sensex.
Consumer Discretionary: Titan Company’s shares climbed up to 5% on April 8, driven by a 25% increase in Q4 standalone revenue, demonstrating strong demand for premium jewellery and gold coins.
Key Influencing Factors
U.S. Trade Policy: A 90-day suspension of additional U.S. tariffs on India triggered a significant market rebound, providing temporary relief to export-oriented sectors.
Monetary Policy: The Reserve Bank of India reduced the repo rate for the second time in 2025 and shifted its policy stance to “accommodative,” aiming to support economic growth amid global uncertainties.
Currency Movements: The Indian rupee fluctuated widely, falling 0.7% to 85.8350 per U.S. dollar on April 7 before appreciating to 86.18 per dollar later in the week as the dollar index weakened.
Commodities: Gold futures on MCX reached a record high of ₹93,736 per 10 grams, reflecting increased safe-haven demand amid escalating U.S.-China trade tensions.
Corporate Developments
TCS Earnings: Tata Consultancy Services reported a 1.7% year-on-year drop in Q4 net profit, missing analysts’ estimates and pressuring its stock price.
Titan’s Growth: Titan Company’s 25% increase in Q4 standalone revenue highlighted the resilience of premium consumer segments despite broader market volatility.
Investment Landscape
Small Cap Inflows: Small-cap mutual funds experienced a 10% increase in inflows in March despite market volatility, indicating persistent investor confidence in long-term growth prospects.
Market Sentiment: Extreme volatility throughout the week reflected heightened investor sensitivity to global and domestic policy developments.
Global Context
U.S.-China Tensions: Escalating trade tensions between the U.S. and China weighed on global market sentiment, contributing to the volatility in Indian markets.
Dollar Weakness: A weaker dollar supported emerging market currencies, including the Indian rupee, partially offsetting negative sentiment from trade concerns.
Outlook
Investors should approach markets cautiously, given the temporary nature of the U.S. tariff suspension and continuing global trade uncertainties. The RBI’s accommodative stance suggests potential for further monetary support, which could benefit domestic consumption-driven sectors. Export-oriented industries remain vulnerable to trade policy developments and warrant selective positioning.
Conclusion
The Indian market demonstrated both extreme vulnerability and remarkable resilience this week, with dramatic swings reflecting the impact of external factors and policy adjustments. While the immediate tariff relief provided temporary support, underlying concerns about global trade and economic growth persist. Investors may benefit from focusing on companies with strong domestic revenue streams while maintaining a balanced approach across sectors.