The Indian benchmark indices, Sensex and Nifty, moved mixed on Tuesday as the Reserve Bank of India’s (RBI) liquidity-boosting measures helped offset weak global cues stemming from U.S. President Donald Trump’s ongoing criticism of Federal Reserve Chair Jerome Powell.
On Tuesday, the Nifty 50 closed at 24,167.25, down by 41.70 points or 0.17%. Meanwhile, the Sensex closed positive, up 187.09 points or 0.24% at 79,595.59. Notably, the Nifty 50 surged past 24,000 for the first time since January 2nd.
The Nifty Bank index hit a record high, driven by strong performances from HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. Meanwhile, IndusInd Bank shares fell 4.9% following news of a second forensic audit related to a discrepancy in its microfinance portfolio.
Among the top gainers from the Sensex pack on Tuesday were ITC, Hindustan Unilever, HDFC Bank, Kotak Mahindra Bank, State Bank of India, and ICICI Bank. The laggards included Power Grid, Bharti Airtel, Infosys, Bajaj Finserv, and IndusInd Bank. The FMCG sector gained 1.87% overall, outperforming tech, IT, power, utilities, and telecom stocks.
President Trump has criticized Federal Reserve Chair Jerome Powell for not cutting interest rates, raising concerns that he might attempt to fire Powell. This move would challenge the Federal Reserve’s independence, unsettling global financial markets, as per Reuters.
According to Peter Schiff, Chief Economist and Global Strategist at Europac, Powell’s claim about the Fed’s independence serving the nation well is misguided. Schiff argues that the Fed has destroyed the dollar’s purchasing power, created asset bubbles, and enabled explosive growth in unproductive debt.
Cullen Roche, investor and author, countered it, saying, “The Fed’s independence allows it to operate in a politically and countercyclically manner. For instance, during 2022–23, when the government ran large inflationary deficits, the Fed correctly raised interest rates (albeit belatedly) as a form of monetary offset. This helped curb inflation, despite its impact on growth. While the Fed isn’t perfect, its independence is crucial in mitigating the procyclical nature of government policy.”
FIIs continue to remain net buyers for the fourth consecutive session on Monday, with inflows of nearly Rs. 2,000 crore, which extended support to the market, Moneycontrol reported.
Last week, foreign portfolio investors (FPIs) played a crucial role in the recent stock market rally, reversing their selling streak and purchasing Rs. 14,670 crore worth of shares during the week.
The IT industry is currently facing a predicament with the struggling Nifty IT Index. India’s top IT services firms — TCS, Infosys, Wipro, and HCL Tech — are struggling, with the Nifty IT index falling 9.5% in April, although the broader Nifty 50 gained 1.4%. The sector’s weight in the Nifty 50 dropped to 10.2%, its lowest in 17 years. Weak Q4FY25 results and uncertain US economic conditions have hurt investor sentiment, leading to 23% year-to-date losses in 2025, according to various reports.
Gold prices have surged past $3,500 per ounce, driven by escalating US–China trade tensions and a weakening US dollar. Experts predict further gains, with potential targets of $3,580–$3,620 per ounce. In India, MCX gold rates hit Rs. 93,940 per 10 gm, with expectations of reaching Rs. 95,000–Rs. 95,500.
According to ET, on April 22, at 12:33 pm GMT-4, Wall Street’s major indexes saw significant gains, driven by corporate earnings reports. The Dow Jones Industrial Average (DJIA) jumped 1,071.06 points (2.81%) to 39,241.47. The Nasdaq rose 525.01 points (3.31%) to 16,395.91, and the S&P 500 gained 146.74 points (2.84%) to settle at 5,304.94.
The recovery followed a sharp sell-off streak driven by President Trump’s criticism of Federal Reserve Chair Jerome Powell over rate cuts to boost the economy.
