Indian headline indices, Sensex and Nifty, rebounded strongly in Tuesday’s opening session on April 08, 2025, showing signs of recovery after Monday’s steep crash. The sharp sell-off had followed US President Donald Trump’s aggressive tariff hike, which rattled global stock markets. Bouncing back, the 30-share BSE Sensex surged 875.83 points to open at 74,013.73, while the Nifty jumped 415.95 points to 22,446.75. Investors responded positively to bargain-buying opportunities and easing global cues. Meanwhile, the BSE Midcap and Smallcap indices each advanced nearly 2 percent, reflecting broader market optimism and improved investor sentiment across various sectors.
Positive global cues and India’s lower tariffs boost markets rebound, attract FII interest
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One of the key reasons behind the rebound is positive global cues. Asian markets rebounded with Nikkei surging 6 per cent on Tuesday in a broad-based rally, bouncing back from a 1.5-year low reached in the previous session, as traders evaluated the robust performance of US technology stocks. Also, experts believe that India’s comparatively lower tariffs, especially relative to other Asian economies like China, Vietnam, and Thailand, offer a distinct advantage in attracting Foreign Institutional Investors (FIIs).
Lower tariffs may drive FII inflows, but long-term gains hinge on policy stability: Akhil Puri
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“In the short term, reduced tariffs can drive higher FII inflows, boosting market sentiment and liquidity. A favorable tariff structure signals a business-friendly climate, leading to immediate foreign capital influx and increased investor confidence. Over the medium to long term, sustaining these inflows will depend on stable trade policies and investor-friendly regulations. If India maintains a predictable policy environment, lower tariffs could ensure a steady and stable stream of FII investments,” said Akhil Puri, Partner, Financial Advisory, Forvis Mazars in India