At 13:30 IST, the barometer index, the S&P BSE Sensex, surged 1,626.54 points or 2.16% to 76,777.53. The Nifty 50 index rallied 498.25 points or 2.18% to 23,326.80.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rallied 2.25% and the S&P BSE Small-Cap index surged 2.91%.

The market breadth was strong. On the BSE, 3,227 shares rose and 769 shares fell. A total of 184 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 18.56% to 16.38.

Gainers & Losers:

Indusind Bank (up 6.78%), Shriram Finance (up 5.03%), Larsen and Toubro (up 4.65%), Tata Motors (up 4.47%) and Axis Bank (up 4.05%) were the major Nifty gainers.

None of the Nifty50 stocks recorded losses as the index traded firmly in positive territory.

Economy:

India’s wholesale inflation, based on the Wholesale Price Index, eased to 2.05% in March as compared with 2.38% in February. It had stood at 0.26% in March 2024. “Positive rate of inflation in March, 2025 is primarily due to increase in prices of manufacture of food products, other manufacturing, food articles, electricity and manufacture of textiles etc," the industry ministry said in a statement.

Stocks in Spotlight:

Kaushalya Logistics jumped 5.59% after the company announced the commencement of operations at the Katihar Depot (Bihar) for Ambuja Cements, a part of the Adani Group.

Apollo Micro Systems jumped 4.66% after the company said it received orders totaling Rs 7.52 crore from the Defence Research and Development Organisation (DRDO), a Public Sector Undertaking (PSU), and a private company.

Aurobindo Pharma jumped 4.60% after the pharma company said that it has received final approval from US Food and Drug Administration (USFDA) to manufacture and market Rivaroxaban Tablets USP, 2.5 mg.

Biocon rose 3.93% after the company's subsidiary Biocon Biologics signed a settlement and license agreement with Regeneron, paving the way to commercialize Yesafili, a biosimilar to EYLEA, in the U.S. by the second half of 2026.

Jubilant Agri and Consumer Products (JACPL) rallied 7.46% after the company has incorporated a wholly owned subsidiary, (WOS) Jubilant Agri Solutions (JASL), on 7 April 2025.

Global Markets:

European markets opened higher on Tuesday amid tentative optimism that there will be some respite from U.S. President Donald Trump’s tariffs regime.

The U.K. employment rate ticked 0.2% points higher on the quarter to 75.1% between December 2024 and February 2025, the Office for National Statistics said in a labor market report published Tuesday. In an initial estimate, the number of payrolled employees fell 0.3% month on month and 0.2% annually in March.

Average annual wage growth excluding bonuses came in at 5.9% in December to February, up from a rate of 5.8% in November to January. Wage growth including bonuses was 5.6%.

Asian shares advanced after U.S. President Donald Trump announced a temporary exemption for smartphones and other electronics from the list of Chinese imports facing steep tariffs. However, investor sentiment remained cautious, as the ongoing trade negotiations between Washington and Beijing continue to generate economic uncertainty.

On Monday, Trump suggested the possibility of extending tariff exemptions to automobiles as well. Nevertheless, the frequent shifts in the administration's trade stance have created uncertainty around U.S. economic policy, which has dampened investor risk appetite.

U.S. equities recorded two consecutive sessions of gains, supported by the partial tariff relief and renewed bargain buying following weeks of losses. The S&P 500 rose 0.8%, the NASDAQ Composite added 0.6%, and the Dow Jones Industrial Average also advanced 0.8%.

Despite the short-term relief, recent comments from the President indicated that the exemptions for electronics may be temporary. Trump hinted at the potential introduction of separate tariffs targeting the electronics sector, contributing to increased uncertainty about the U.S. economic outlook. The dollar declined to a three-year low amid the lack of policy clarity, and U.S. Treasury yields climbed as investors reduced exposure to government bonds.

Markets also remained wary of the broader implications of the escalating trade conflict. Last week, the U.S. imposed cumulative tariffs of 145% on Chinese imports, prompting retaliatory measures from Beijing, which introduced tariffs amounting to 125% on U.S. goods.

In addition to trade developments, U.S. markets found some support from stronger-than-expected first-quarter earnings from major banks. These results suggested a degree of resilience in corporate performance despite growing macroeconomic headwinds.