Nifty Midcap and Smallcap indices surge up to 16% in 6 sessions due to global trade relief
Indian markets have strongly recovered in recent sessions despite global and Asian market volatility, driven by domestic factors like easing food inflation and RBI rate cuts.
Tariff negotiations between India and the United States are progressing, while China and the US are engaged in a trade war, offering India an advantage.
The broader markets led the recent recovery, with Nifty Midcap 100 gaining 11.45% and Nifty Small cap 100 rallying 16% from April 7 lows. Nifty 50 and Sensex also surged over 7.5%. Overseas investors returned to the Indian stock market after nine sessions, buying ₹6,065 crore worth of Indian stocks through exchanges.
The 90-day pause in 26% reciprocal tariffs by US President Donald Trump has boosted export-oriented sectors like chemicals, textiles, and auto ancillaries. Fisheries stocks and EMS stocks have also reacted positively.
India and the United States are actively discussing a bilateral trade agreement, aiming for finalization by September or October 2025.
The United States is India’s largest trading partner, with over $118 billion in bilateral trade in 2023–24. India aims to double this to $500 billion by 2030.
India has decided to pursue trade liberalization with the US. Virtual discussions will start this month, with in-person talks in mid-May.
## EMS, chemical stocks are top gainers in recovery rally
Electronic Manufacturing Services (EMS) stocks have surged due to optimism about benefiting from US tariffs on Chinese imports.
Kaynes Technology shares gained 17.3% last week, while Dixon Technologies also rallied over 17%. Chemical stocks have also gained sharply.
Other mid- and small-cap stocks, including Data Patterns (India), Mazagon Dock Shipbuilders, Apollo Tyres, Premier Energies, SAIL, and Solar Industries, have gained between 5% and 10% in the past week.
Dr. V.K. Vijayakumar of Geojit Financial Services advises caution, noting potential volatility due to the ongoing US-China trade war.
Nifty Midcap and Smallcap indices jump up to 16% in 6 sessions on global trade relief
Stock market today: Indian markets have made a stellar comeback in recent sessions despite the continued volatility in the global and Asian markets, as domestic-focused factors such as easing in food inflation and rate cut by the RBI have made bulls take charge of the markets.
Further, the tariff negotiations between India and the United States are picking up speed, even as China and the US are engaged in a bitter and acrimonious war, which top government sources say India is looking to take advantage of.
The recent recovery rally was led the broader markets, with Nifty Midcap 100 index gaining 11.45% from April 07 lows, while its peers, Nifty Small cap 100 even gained higher, rallying 16% in the same period.
The frontline indices — Nifty 50 and Sensex — have also surged over 7.5% from their April 7 lows, another positive boost to the markets came as overseas investors returned to the Indian stock market after being net sellers for nine consecutive trading sessions. They bought ₹6,065 crore worth of Indian stocks through exchanges.
The 90-day pause in the 26% reciprocal tariffs by US President Donald Trump has significantly boosted export-oriented sectors such as chemicals, textiles, and auto ancillaries. In addition, fisheries stocks have also made a strong comeback, while EMS stocks have reacted positively to the tariff pause.
Meanwhile, India and the United States are actively advancing discussions on a bilateral trade agreement, aiming to finalise the initial phase by September or October 2025.
The United States remains India’s largest trading partner, with bilateral trade exceeding $118 billion in the 2023–24 period. India has expressed its intent to double this figure to $500 billion by 2030.
“India has decided to go for a path of trade liberalisation with the US,” trade secretary Sunil Barthwal told reporters on Tuesday, April 15. India and the US will start virtual discussions this month, with the next round of in-person talks scheduled for mid-May, added Rajesh Agrawal, additional secretary in the trade ministry.
EMS, chemical stocks emerge as top gainers in recovery rally
Stocks in the Electronic Manufacturing Services (EMS) sector have surged in the recent market rebound, driven by investor optimism that the sector is well-positioned to gain from the steep US tariffs on Chinese imports.
Kaynes Technology saw its shares gain 17.3% in the last week, while shares of Dixon Technologies also rallied over 17% during the same period. Chemical stocks have also gained sharply in recent sessions.
Other mid- and small-cap stocks, including Data Patterns (India), Mazagon Dock Shipbuilders, Apollo Tyres, Premier Energies, SAIL, and Solar Industries, have also gained between 5% and 10% in the past week.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The market is indicating calm after the storm. But investors should not jump to the conclusion that stability has returned and that the market is poised for further upmoves. Since the trade war between the U.S. and China is heating up—following China’s latest decision to halt exports of rare earths and suspend Boeing orders—more actions, reactions, and volatility are on the cards.”