Indian stocks staged a sharp recovery in Thursday’s trade, recouping all the losses incurred during the first half of the session and turning positive towards the close.
The markets opened on a weak note after US President Donald Trump raised additional tariffs on goods imported from India to 50%. Selling pressure intensified by noon, with the Nifty 50 and Sensex losing up to 0.90% to hit a 3-month low.
However, strong buying in the second half of the session, which was sustained through the closing bell, led the Nifty 50 to recover nearly 259 points from the day’s low and close with a gain of 0.09% at 24,596 points. The S&P BSE Sensex also staged a strong rebound of 677 points from the day’s low to finish with a gain of 0.10% at 80,623 points.
The broader markets witnessed a similar turnaround, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each rising by 0.40% and 0.20%, respectively.
On Wednesday, Trump signed an executive order imposing an additional 25% tariff on Indian goods, citing India’s continued imports of Russian oil as the rationale. This hike is in addition to the 25% tariff announced last week, bringing the total U.S. duty on many Indian imports to 50%. Analysts believe Trump is using tariffs as a strategic tool to pressure New Delhi into cutting ties with Russia, including pausing crude oil imports and defence purchases.
Speaking at the MS Swaminathan Centenary International Conference in Delhi, Prime Minister Narendra Modi said that India will never compromise on the interests of farmers and fishermen, even if it means personally paying a heavy price.
This follows a similar statement by India’s Ministry of External Affairs on Wednesday, which strongly criticised the action, calling it ‘extremely unfortunate’ that the US has chosen to penalise India for decisions that are also being made by several other countries in their own national interest.
25 Nifty 500 stocks rose more than 3% amid a sharp market rebound
Twenty-five constituents from the Nifty 500 index closed with gains of over 3%, with ITI emerging as the top gainer, rallying 7%. This marked its second straight session of gains after the company announced the launch of India’s first AI-powered road safety pilot in Uttar Pradesh, aimed at reducing road accidents and improving enforcement efficiency.
Caplin Point Laboratories also closed with a gain of 6.71%, while Kajaria Ceramics and Kirloskar Brothers ended with gains of over 5%. Lupin shares attracted strong buying interest after brokerages retain their bullish outlook on the stock following a healthy performance in the June quarter.
Likewise, Hero MotoCorp ended 4.2% higher after the company reported better-than-expected Q1 numbers, supported by strong export growth. Coforge gained 4%, ending its two-day losing streak. Other stocks, including Sundaram Finance, 3M India, NCC, Blue Star, and 15 others, closed with gains between 3% and 4%.
Godfrey Phillips, BHEL, Reliance Power and 15 other stocks see cuts of up to 8%
After maintaining a strong upward trend, shares of Godfrey Phillips India witnessed profit booking in today’s session, plunging 7.9% to ₹998. The stock had rallied sharply in recent sessions following stellar Q1FY26 results. Gujarat Narmada Valley Fertilizers & Chemicals emerged as the second-biggest laggard, tumbling 7.6% and correcting 29% from recent highs.
Reliance Power shares resumed their losing streak, falling 5% after a brief relief rally in the previous session. Bharat Heavy Electricals also came under selling pressure, slipping 5% after CLSA assigned an ‘Underperform’ rating, citing a doubling of net losses.
Other stocks such as SKF India, Bayer Cropscience, EID Parry (India), Sarda Energy & Minerals, JSW Holdings, Thermax, Rashtriya Chemicals, Berger Paints (India), Carborundum Universal, Finolex Industries, Newgen Software, Bharti Hexacom, Emami, and Metropolis Healthcare also fell between 3% and 5%.