What a Comeback!
After a sharp decline yesterday, stock market recovery news today, i.e., April 8, 2025, brought much-needed relief to investors, with Sensex surging over 1,090 points and the Nifty 50 passing 22,500. Several factors contributed to this quick recovery, including positive global market signals, hopes around US trade deals, and an upcoming RBI policy decision. This rally offers an interesting story to explore, whether you are an active trader or just follow market news.
Let’s get into the reasons behind the rebound and identify the top Sensex gainers.
All Eyes on RBI’s Policy Decision: Will a Rate Cut Boost Market Momentum?
The focus is now on the Reserve Bank of India’s Monetary Policy Committee meeting as it will announce its first policy decision for FY26 on Wednesday, April 9, 2025, with markets expecting a 25 basis point rate cut. In February, the repo rate was reduced to 6.25%, the first cut in nearly five years. With February inflation at 3.61%, below the RBI’s 4% target, and concerns over a 27% tariff on Indian goods imposed by the US, the central bank is likely to continue easing. It has injected ₹5.2 trillion to support liquidity. While the RBI has a neutral stance, some experts believe a shift to accommodative is possible, indicating easing for more rate cuts to support growth.
What Sparked the Sharp Rebound?
The Indian stock market’s April 8 rebound was driven by multiple factors:
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Global Market Recovery
Asian markets, including India, saw a positive recovery, gaining investors’ confidence back. Japan’s Nikkei surged by 5.6% after news of US officials negotiating trade terms with Tokyo. Despite the US warning China about a potential 50% additional tariff increase, China’s markets remained stable, with Hang Seng rising by 1.7% and China’s blue-chip index gaining 0.6%. This Asian market influence played a key role in lifting global sentiment.
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RBI Policy Expectations
Investors are hopeful about the RBI’s policy decision on April 9. Experts predict a 25 basis point rate cut due to low retail inflation in February. This would be the second consecutive rate cut after February brought the repo rate down to 6.25%. Some analysts suggest the RBI may adopt a more supportive stance to boost growth.
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Buying the Dip
After weeks of market weakness, investors saw a chance to buy stocks at lower prices. The Nifty fell 14.8% from its peak, and mid-cap and small-cap indices corrected by approximately 19% and 22% each. The buy-the-dip strategy is another factor that led to the sharp Nifty 50 rally seen on April 8.
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Crude Oil Price Drop
Crude oil prices dropped significantly, benefiting oil-importing countries like India. On Monday, Brent crude fell below $65, its lowest since August 2021. By Tuesday morning, Brent was at $65.07, and WTI crude was trading at $61.57. The decrease was due to concerns that high US tariffs might lower global demand.
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Falling US Bond Yields and Weak Dollar
The US 10-year Treasury yield decreased to 4.14% from 4.5% in mid-February. The 2-year yield also dropped to 3.715% from 4.28%. The U.S. Dollar Index fell to 102.92, which makes emerging markets such as India more attractive to global investors.
Sectoral Surge: Who Gained the Most?
The April 8 rally was not just about a few big stocks. It was a huge surge showing positive market sentiment in India in various sectors and market segments.
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Metals Lead the Charge
The Nifty Metal index surged by 1.74%, outperforming other sectors. This increase was driven by hopes of easing global trade tensions and a potential rise in demand for industrial commodities. The news of negotiations between the US and Japan also contributed to this positive sentiment.
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Auto Stocks Drive the Rally
Oil prices have dropped to their lowest since 2021 and as a result, Nifty Auto rose by 1.63%. Lower fuel prices can increase vehicle sales and lower costs for this sector, making it more attractive to investors.
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Banking and FMCG Join the Rally
The Nifty Bank index increased by 1.31% on expectations of an RBI rate cut, which could boost credit growth and help banking margins. Nifty FMCG also went up by 1.99%, indicating strong investor confidence across different sectors, even defensive ones.
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Midcaps and Smallcaps also Show Strength
Both Nifty Midcap 100 and Smallcap 100 have also shown significant rise, indicating that investors were willing to invest in broader market segments. This shows a more strong market recovery, rather than a temporary or speculative one.
What Does This Mean For Investors?
When gains are seen in various sectors like metals, autos, banks, and FMCGs, including mid-and small-cap stocks, it indicates a more stable uptrend. This means that the rally is backed by strong fundamentals and not just sentiment-driven purchases in a few big stocks.
Top Sensex Gainers
Top Sensex gainers from different sectors driving the market rally:
| Company | % Gain | Sector |
| Eicher Motors | 3.28% | Auto |
| Varun Beverages | 4.01% | FMCG |
| Lloyds Metal | 6.86% | Metal |
| Bank of India | 3.30% | Banking |
Huge buying was seen across various sectors including banking, auto, metal, and FMCG, leading the recovery.
Conclusion
The sharp recovery on April 8 shows rising investor confidence supported by global backing, rate cut expectations, and broad sector involvement. The next market move will rely on the RBI’s policy decision on April 9 and how monetary easing progresses. Investors should keep an eye on global trade news, inflation figures, and central bank hints before taking new investment actions.
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