Indian equity markets displayed resilience on Tuesday, April 22, recovering from a muted start to close significantly higher, driven primarily by gains in banking stocks. The SENSEX climbed as much as 372 points, while the NIFTY50 index touched an intraday high of 24,228.35.
Banking giants HDFC Bank, Kotak Mahindra Bank, and State Bank of India played a pivotal role in the market’s upward trajectory, contributing over 300 points to the SENSEX’s gain, according to BSE data. As of 10:42 am, the SENSEX was up 350 points at 79,759.24, and the NIFTY50 index advanced 98 points to 24,224.
Analysts attributed the positive sentiment to a weakening dollar index, which fell to a three-year low, thereby increasing the attractiveness of emerging market equities.
However, the positive momentum in the Indian market contrasted with the performance of most Asian markets, which traded lower following a weak closing in the US. Japan’s Nikkei declined 0.33%, Australia’s S&P/ASX 200 index fell 0.95%, and Hong Kong’s Hang Seng declined 0.05%.
Overnight, US stocks experienced a downturn due to concerns stemming from President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and the Fed’s monetary policy. Trump reiterated his call for immediate interest rate cuts, warning of a potential economic slowdown if they were not implemented.
The Dow Jones Industrial Average fell 971.82 points, or 2.48%, to close at 38,170.41, while the S&P 500 declined 124.50 points, or 2.36%, to settle at 5,158.20, and the Nasdaq Composite dropped 415.55 points, or 2.55%, to end at 15,870.90.
Domestically, metal stocks experienced a surge in buying interest, with the NIFTY Metal index rising 0.85%. This followed the government’s decision to impose a 12% provisional safeguard duty for 200 days on specific steel product categories, including hot rolled coils, sheets, and plates, to shield domestic producers from a surge in imports.
PSU Bank, Realty, FMCG, Financial Services, and Consumer Durable shares also witnessed positive buying interest, while IT, auto, and pharma stocks faced selling pressure.
Mid- and small-cap stocks demonstrated strong performance, with the NIFTY Midcap 100 index rising 0.82% and the NIFTY Smallcap 100 index advancing 1.04%.
Eternal emerged as the top gainer in the NIFTY50 index, surging 3.01% to ₹234 after Goldman Sachs suggested that the proposed foreign ownership cap would translate into EBITDA upside for the company.
Other notable gainers included Kotak Mahindra Bank, HDFC Bank, Bharat Electronics, Tata Steel, and Tech Mahindra. Conversely, IndusInd Bank, Hero MotoCorp, Bajaj Auto, Infosys, Power Grid, and Asian Paints were among the top losers.
The overall market breadth was positive, with 2,194 shares advancing and 910 declining on the BSE.
