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"The rally in the market this week which saw the Nifty rise by 3.5% has come at a time when trade tensions are escalating and more is expected when the reciprocal tariffs kick in on April 2nd. The main driver of the rally is the buying by FIIs in the cash market in two days and perhaps, more importantly, sharp decline in their short positions and increase in long positions in the futures market. It appears that this has given confidence to retail investors who have resumed buying in the broader market which is getting reflected in the smart rebound in the mid and smallcap indices. A significant feature of the rally is that majority of the gainers are the domestic consumption themes which will be insulated from the reciprocal tariffs. Investors may wait and watch for the reciprocal tariff announcement on April 2nd before deciding on investment strategy."