Bulls Lock Horns With Tariffs, But Nifty And Sensex Zoom Higher

The Indian stock market continued its upward momentum on Monday, with key indices showing significant gains by midday. At noon, the BSE Sensex was trading at 77,809.53, marking a rise of 904.02 points (+1.18%), while the NSE Nifty 50 was at 23,613.75, up by 263.35 points (+1.13%).

Earlier in the day, the Sensex surged 545.98 points to reach 77,451.49 (+0.71%), with the Nifty opening at 23,503.15, up 152.75 points (+0.65%). Market breadth remained positive, with 2,175 stocks advancing, 472 declining, and 178 unchanged.

Friday's Closing Sets the Tone for Monday’s Gains
Last week, on Friday, the market had already shown strength, with the Nifty 50 closing at 23,350 (+0.69%) and the Sensex ending at 76,905.51 (+0.73%). The momentum from last week, driven by strong foreign fund inflows and sectoral strength, carried forward into Monday’s session.

Why Are Markets Ignoring the April 2nd Uncertainty?
With just over a week to go until April 2—dubbed "Liberation Day" by former US President Donald Trump due to expected tariff changes—global markets remain cautious. However, Indian investors appear unfazed.

Market expert Ajay Bagga explains why: "The biggest uncertainty right now is tariffs. On Friday night in the US, markets rebounded after Trump said he might be flexible on tariffs. Just that little hope helped US markets break their four-week losing streak, though the gains were weak."

While the fear of tariffs looms, Bagga notes that India remains in a strong position, benefitting from global capital inflows.

"Incremental capital is flowing into Europe and emerging markets, and India is a key beneficiary. Our economy is recovering, inflation is under control, and the RBI ’s monetary easing is expected to provide further support," he added.

RBI’s April 9 Rate Cut Could Further Boost Market Sentiment
A key factor keeping Indian markets buoyant is the anticipated RBI rate cut on April 9. With inflation in check and the central bank focusing on growth, investors expect monetary easing to support economic expansion, adding further optimism to the stock market rally.

"The RBI is set to cut rates next month, which will be a significant boost. India is growing strongly, and while we have reduced some tariffs, the real concern is auto and agriculture—two areas where India is unlikely to budge. But overall, we may escape the worst of the US tariff impact," Bagga explained.

What Lies Ahead for the Markets?
As the deadline for new tariff rules approaches, global investors remain watchful. The Atlanta Fed has predicted a 1.8% contraction in the US economy in Q1, raising concerns about a potential global slowdown.

However, for now, the Indian market is showing resilience. Strong liquidity, foreign institutional inflows, and a stable economic outlook are keeping the rally intact.
While volatility cannot be ruled out as April 2 nears, looks like investors seem confident that India’s fundamentals will shield the stock market from major shocks, keeping the bulls in control.