What’s striking about this recovery is that financial stocks were at the forefront. Heavyweight HDFC Bank led the charge, contributing nearly 115 points to the Nifty50 rally, followed by ICICI Bank and Bajaj Finance, which added around 30 points each. The trio’s gains were instrumental in offsetting previous declines in the index. While HDFC Bank boasts a weight of 14.4% on Nifty50, ICICI Bank is second with a 9.7% weightage.
Shares of HDFC Bank advanced 3.2% in Tuesday’s session, closing at ₹1,864.90 on the NSE—now less than 1% away from its all-time high
of ₹1,880 hit in December. ICICI Bank and Bajaj Finance also ended the day 3% higher, reinforcing the strength in the financial sector.
Also read: FIIs return with ₹6,065 crore equity inflow – their highest purchase since March 27; DIIs book profit
Market experts suggest that the correction in Indian equities may have run its course. Gautam Shah, Founder of Goldilocks Global Research, observed, “The market is entering a time-wise correction phase. We see this as a stock-picker’s market and remain bullish on financials, particularly the Bank Nifty. We expect financial stocks to retest their lifetime highs.”
The recent selloff also helped bring Indian equity valuations closer to historical averages. As of Tuesday’s close, the Nifty50 was trading at 19 times its 12-month forward earnings—below its five-year average of 19.5x and well under the September peak of 21x. In comparison, China’s Shanghai Composite is trading at 11.9x, while Korea’s Kospi commands a multiple of just 8.5x.
According to Bloomberg data, India accounted for only 2.7% of total US imports last year, compared with 14% from China and 15% from Mexico—highlighting the limited direct trade exposure and, by extension, the relative resilience of Indian equities in the face of tariff headwinds.
Also read | Trade Setup for April 16: Nifty’s 900-point rally in two sessions may pause as IT heavyweights report results
