Sensex jumps 1,600 points—What is driving today's rally?
What's the story
The Indian stock market opened on a high note today. At around 10:00am, the Sensex had jumped 1,609 points or 2.14% to 76,767. The Nifty was up 491 points or 2.15% at 23,320.
With the intraday gains, Nifty and Sensex have erased all the losses seen after the US tariff announcement on April 2.
Bulls took charge on Dalal Street today, riding on positive global cues and easing tariff concerns after US President Donald Trump's temporary pause.
Market performance
All sectoral indices traded in green
The Nifty Auto index led the gains with a nearly 3% jump, followed closely by the Nifty Bank index which soared by 2%.
Other sectors including IT, pharma, and metal also witnessed substantial gains.
The broader markets underperformed against these benchmarks but still recorded positive movements with both Nifty Smallcap 100 and Nifty Midcap 100 gaining by 1.3% each.
About 2,685 shares advanced, 396 shares declined, and 149 shares remained unchanged.
Market trends
Auto stocks witnessed strong buying
Auto and auto component stocks witnessed strong buying today as Trump hinted at relief for carmakers facing high import tariffs.
Stocks like Tata Motors, M&M, Bharat Forge, and SAMIL saw their shares soar by as much as 8% in early trading.
This surge was further fueled by Trump's decision to pause tariffs for 90 days and RBI's MPC decision to trim the benchmark lending rate by 25 basis points to 6%.
Institutional trading
Foreign institutional investors continued their selling streak
On the institutional front, FIIs continued their selling streak for the ninth consecutive session on April 11, offloading equities worth ₹2,519 crore.
Meanwhile, DIIs remained net buyers during this period, purchasing equities worth ₹3,759 crore.
This divergence in trading behavior reflects differing strategies among institutional investors amidst changing market conditions.