Sensex jumps nearly 600 pts, Nifty above 23,300 ahead of Trump tariff decision; all sectors in green

Tata Consumer Products, Zomato (Eternal), Titan Company, IndusInd Bank, and Tech Mahindra were the top gainers on the Nifty.

After a two-day decline, Nifty and Sensex ended the session with strong gains on April 2, driven by a rebound in banking and IT stocks. The rally comes just ahead of US President Donald Trump’s April 2 tariff deadline, which the White House has confirmed will take immediate effect.

At close, the Sensex was up 592.93 points or 0.78 percent at 76,617.44, and the Nifty was up 166.65 points or 0.72 percent at 23,332.35. About 2755 shares advanced, 1048 shares declined, and 130 shares unchanged.

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"The whole structure of global trade could change post Trump's tariff plans and markets will take some time to absorb the prices. We need to wait and watch what the contours of Trump's tariff plans are. If markets tend to become pessimistic, we will witness a downtrend, and we don't believe the tariff narrative is fully priced in the markets yet," Sandeep Bagla, CEO of Trust Mutual Fund said in a conversation with Moneycontrol.

The broader market echoed the upbeat sentiment, with the Nifty Midcap 100 climbing 1.61 percent and the Smallcap 100 gaining 1.2 percent. However, despite their recent corrections of 9 percent and 14 percent, analysts warn that elevated valuations could still pose downside risks.

Also read: Auto sector rides fast in March 2025

Sectorally, Nifty FMCG, Bank, IT and Auto were the top performers, rising up to 1 percent on April 2.  HDFC Bank, ICICI Bank, and SBI lifted the index. Nifty Infra, Metal, Pharma and PSU Bank followed suit, rising about 0.5 percent each. The Nifty Oil and Gas index, down about 0.4 percent in the afternoon, pared losses to end higher by 0.2 percent. All 13 sectoral indices ended with gains.

"Structurally, after a steep 16 percent correction over the last five months, market sentiment and momentum indicators have rebounded from bearish extremes. Any pullback from here on should be considered a healthy retracement, which will allow the index to form a higher base around the 22,800 mark. Hence, the focus should be on accumulating quality stocks with a medium-term perspective," ICICI Securities said in a note.

Read more: India’s PMS managers brace for Trump tariffs—here’s where they’re investing

Among individual stocks, Tata Consumer Products dazzled in today's session with gains of over 7 percent. This comes after global brokerage firm Goldman Sachs upgraded its rating on the stock to 'buy' from 'neutral' and raised its price target. Goldman Sachs stated that Tata Consumer Products is set for robust growth in its Earnings Per Share (EPS) over the financial years 2025-2027. The brokerage also anticipates a recovery in the company’s tea margins, supported by price hikes.

Vishal Mega Mart shares surged over 6.5 percent on April 2, emerging among the top gainers in the broader market. The rally comes as peer retailers reported strong business updates for the March quarter. Its competitor V-Mart Retail posted a 17 percent revenue growth, with same-store sales rising 8 percent year-on-year. The company also expanded its footprint, adding 53 net stores during the financial year. Its stock jumped 10 percent in Wednesday’s session.

Shares of TVS Motor Company gained as much as 3 percent after the company wrapped up the financial year 2024-25 on a high note, delivering its best-ever annual sales of 4.74 million units, a 13 percent jump from the previous year. The momentum continued in March 2025, with total sales rising 17 percent year-on-year to 4,14,687 units.

"With yesterday’s decline, Nifty has retraced 38.2 percent of its recent rally and is now testing a crucial support zone around 23,100, which aligns with the 20 DEMA and 50 DEMA. Holding this level will be key; a breach could push prices lower toward the 23,000–22,900 range," Sameet Chavan, of Angel One said.

"Looking back at March’s bullish candle, we had advocated a buy-on-dip approach, making the mentioned support levels critical. For bullish momentum to regain strength, Nifty needs to close above the 89 DEMA at 23,350, followed by a break above yesterday’s high near 23,600. Traders should monitor these levels closely and plan their trades accordingly. Given the ongoing geopolitical uncertainties and the likelihood of volatile swings, it is advisable to remain cautious, and avoid complacency," he added.

Tata Consumer Products, Zomato (Eternal), Titan Company, IndusInd Bank, and Tech Mahindra were the top gainers on the Nifty. Bharat Electronics, UltraTech Cement, Power Grid Corp, Nestle, and Hindalco were the major laggards.