Sensex and Nifty Soar Over 2% Amid Global Market Rally and Tariff Exemptions
Market Surge Following Tariff Adjustments
Mumbai: On Tuesday, the benchmark equity indices, Sensex and Nifty, experienced a significant rise of over 2%, buoyed by a global market rally following US President Donald Trump's decision to ease certain tariffs on electronic goods and indicate potential duty adjustments for automobiles.
For the second consecutive session, the 30-share BSE Sensex surged by 1,577.63 points, marking a 2.10% increase, closing at 76,734.89. At its peak during the day, it soared by 1,750.37 points, or 2.32%, reaching 76,907.63, fueled by widespread gains across sectors.
The NSE Nifty also saw a notable increase, climbing 500 points or 2.19% to settle at 23,328.55. During intraday trading, it peaked at 23,368.35, reflecting a 2.36% rise. The key indices have nearly recouped all losses incurred due to Trump's previously announced tariffs on April 2.
Every sectoral index on the BSE closed in positive territory, with Realty, Auto, Capital Goods, and Industrials leading the charge, each gaining up to 5%.
IndusInd Bank emerged as the top performer among Sensex stocks, soaring by 6.84%. Tata Motors followed with a 4.50% increase. Other notable gainers included Larsen & Toubro, Axis Bank, Adani Ports, HDFC Bank, ICICI Bank, and HCL Tech.
In contrast, ITC and Hindustan Unilever were the only stocks to decline.
Trump's remarks suggested a temporary exemption for the auto sector from previously imposed tariffs.
Asian markets also reflected positive trends, with South Korea's Kospi, Tokyo's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all closing higher. European markets were similarly on an upward trajectory, while US markets had a strong finish on Monday.
Trump announced a temporary exemption for smartphones, computers, and other electronic items from tariffs.
"The benchmark indices continued their upward momentum on Tuesday, following Trump's announcement of additional tariff exemptions, despite ongoing uncertainties. Broader mid and small-cap stocks also saw substantial gains, alongside all major sectors. The markets opened significantly higher, driven by mostly positive global cues after the US exempted smartphones and other electronics from tariffs on China," stated Satish Chandra Aluri, an analyst at Lemonn Markets Desk.
Additionally, wholesale price inflation decreased to 2.05% in March, down from 2.38% in February, according to government data released on Tuesday.
Foreign Institutional Investors (FIIs) sold equities worth Rs 2,519.03 crore on Friday, as per exchange data.
The global oil benchmark, Brent crude, fell by 0.52% to USD 64.54 per barrel.
On Friday, the Sensex had risen by 1,310.11 points, or 1.77%, closing at 75,157.26, while the Nifty climbed 429.40 points, or 1.92%, to reach 22,828.55. The equity markets were closed on Monday in observance of Dr. Baba Saheb Ambedkar Jayanti.