Indian stocks staged a strong comeback in Thursday’s session, April 2, recovering all their opening losses and turning positive toward the close. Technology stocks led the rebound, while a recovery in the Indian rupee from its historic low also aided sentiment.
The Nifty 50 and Sensex ended 0.15% and 0.17% higher, respectively. The Nifty Midcap 100 and Nifty Smallcap 100 also saw a sharp recovery from the day’s lows but failed to finish in the green, ending 0.26% and 0.36% lower.
Sectoral performance was mixed. The Nifty IT, Nifty Realty, Nifty Metal, and Nifty Private Bank indices closed higher by 2.60%, 1.07%, 0.39%, and 0.39%, respectively. On the flip side, Nifty Consumer was the worst hit, falling 0.93%, while Nifty Pharma and Nifty Chemicals also declined by 0.92% and 0.82%, respectively.
The Indian rupee posted its biggest gain in more than 12 years, rising 2%, after authorities intensified their crackdown on speculation against a weaker exchange rate, extending curbs to offshore derivatives just days after tightening limits on banks’ local positions.
Meanwhile, US President Donald Trump, in his latest address on the Iran war, told US forces would continue to strike Iran “very hard” over the next two to three weeks and bring the country “back to the Stone Ages.” He also touted the success of US operations, arguing that Washington’s objectives have so far been met or exceeded.
He further threatened to target Tehran’s energy infrastructure if the Strait of Hormuz is not reopened. Earlier, Trump had set an April 6 deadline for Iran to reopen the strait, warning of expanded attacks on the country’s power plants if it fails to comply.
The conflict has now largely shifted to the key waterway, which Iran has controlled since the start of the war on February 28.
(more to come)