Global and domestic equity markets displayed sharp swings this week, swinging between relief rallies and renewed selling pressure as investors wrestled with macro cues, policy reactions and sector-specific shifts.
Indian benchmarks roared back on Tuesday, logging one of their strongest sessions in recent months as the BSE Sensex surged over 2,000 points and the Nifty 50 climbed above 25,700, propelled by a breakthrough in the long-awaited India–US trade deal that eased tariff uncertainties and bolstered sentiment. Broad-based buying lifted all major sectoral indices, while investors collectively gained over ₹12 lakh crore in market wealth in a single session.
Market analysts said the pact — which includes a significant cut in U.S. tariffs on Indian goods — served as a powerful short-term catalyst, bringing back risk appetite after recent volatility. Heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank led the advance, supported by strong participation across realty, metals and financial services.
However, optimism was soon tempered. On Wednesday, both the Sensex and Nifty drifted lower as domestic IT stocks bore the brunt of global tech sell-offs, dragging indices downward and pushing the Nifty below key technical levels. Analysts attributed the slippage to profit-taking after Tuesday’s dramatic gains and spillover pressure from U.S. markets, where technology shares weakened and weighed on broader indices.
Across the Atlantic, U.S. markets saw a tech-led slowdown, with the S&P 500 and Nasdaq pulling back from near-record highs amid concerns over stretched valuations, even as the Dow showed relative resilience. Precious metals such as gold and silver rebounded sharply, reflecting haven demand amid risk off-tones.
Market breadth remained mixed, with small-cap and mid-cap segments showing tentative resilience even as headline indexes paused. Traders are now eyeing upcoming earnings and macro data — including U.S. jobs figures and corporate quarterly results — for directional cues.
While the trade deal has injected short-lived strength, analysts urge caution, pointing out that sustaining the rally will require consistent corporate earnings, healthy foreign inflows, and clarity on global monetary conditions.
