Sensex, Nifty surge nearly 2% amid U.S.-Japan tariff talks, FII inflows

Markets surge for fourth day as investors turned buoyant after foreign investors returned to domestic equities. File
| Photo Credit: Niharika Kulkarni

Benchmark indices Sensex and Nifty surged nearly 2% on Thursday (April 17, 2025), registering their fourth day of rally, as investors turned buoyant after foreign investors returned to domestic equities amid expectations of a breakthrough in U.S.-Japan trade negotiations over reciprocal tariffs.

The 30-share BSE benchmark Sensex jumped 1,508.91 points or 1.96% to reclaim the 78,000 level. It finally settled at 78,553.20. During the day, it soared 1,572.48 points or 2.04% to 78,616.77.

The NSE Nifty surged 414.45 points or 1.77% to 23,851.65.

From the Sensex firms, Eternal, ICICI Bank, Bharti Airtel, Sun Pharma, State Bank of India, Bajaj Finserv, Kotak Mahindra Bank and Reliance Industries were among the biggest gainers.

Tech Mahindra and Maruti were the laggards.

Foreign Institutional Investors (FIIs) bought equities worth ₹3,936.42 crore on Wednesday (April 16, 2025), according to exchange data. On Tuesday (April 15, 2025), FIIs bought equities for ₹6,065.78 crore.

In Asian markets, South Korea’s Kospi index, Tokyo’s Nikkei 225, Shanghai SSE Composite index and Hong Kong’s Hang Seng settled higher.

European markets were trading in the negative territory.

U.S. markets ended significantly lower on Wednesday (April 16, 2025).

The U.S. and Japan are currently holding trade talks over reciprocal tariffs, with an aim to strike a deal soon.

“A strong rally in large-cap stocks was observed today, primarily driven by financials, amid expectations of improved margins stemming from changes in savings deposit interest rates. Positive sentiment was further supported by a reversal in FII flows, although the sustainability of this trend remains uncertain.

“Nonetheless, optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from U.S.-India trade negotiations and a relatively minimal disruption from the U.S.-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels is further enhancing market sentiment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Global oil benchmark Brent crude climbed 0.94% to $66.47 a barrel.

Defying a weak global market trend on Wednesday (April 16, 2025), the BSE Sensex climbed 309.40 points or 0.40% to settle at a two-week high of 77,044.29 in a volatile session. The Nifty rallied 108.65 points or 0.47% to 23,437.20.

Stock markets will remain closed on Friday (April 18, 2025) for ‘Good Friday’.