The Indian stock market defied weak global cues on April 11, with a broad-based relief rally lifting benchmark indices. Key factors driving the market rally include the 90-day suspension of US tariffs on Indian exports, a decline in crude oil prices, and a weakening dollar.
US Tariff Suspension Sparks Investor Sentiment
The US President announced a 90-day pause in reciprocal tariffs for most nations, excluding China. This news lifted investor sentiment and boosted the stock market. Investors cheered the suspension of tariffs on Indian exports, which were expected to impact a range of goods.
- Pharma and metal stocks rose more than 3% in the morning session.
- Nifty Auto and Healthcare also gained more than 2%.
- Nifty Financial Services, IT, PSU Bank, Realty, Consumer Durables, and Oil & Gas opened 1-2% higher.
A Weakening Dollar Boosts Emerging Markets
The continued slide in the US dollar has supported emerging markets, including India. A weaker dollar typically leads to stronger foreign inflows into Indian equities and eases pressure on the rupee. • Indian rupee surged by 51 paise to 86.17 against the US dollar.
• US dollar index fell below 100 for the first time since July 2023.
Decline in Crude Oil Prices
Oil prices slipped for a second straight session, helping ease inflation concerns. Lower oil prices are typically positive for India, which imports a majority of its crude requirements. • Brent crude futures declined to $63.02 per barrel.
• US West Texas Intermediate crude futures dropped to $59.71.
Nifty Technicals
Analysts predict that the Nifty may find support at 22,300, followed by 22,200 and 22,000. On the higher side, 22,550 could act as immediate resistance, followed by 22,750 and 23,000. Sustainability and Investment Strategy
Analysts caution that the market rally may not be sustained due to global economic uncertainty. However, investors can take relief from the fact that Indian macros are good and relatively less impacted by the trade war. Investors should prioritize safety over returns, focusing on fairly valued largecaps. •
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