Bulls Gallop On Dalal St as US Offers More Reliefs

Trump also suggested he might grant exemptions on the 25% levies for automobiles that are already in place, leading to a sharp rally in auto stocks. The latest tariff adjustments suggest the White House is recognizing the pressure on American consumers and the broader economy - Satish Chandra Aluri, analyst, Lemonn Markets Desk

Investors gain Rs 0.9 lakh cr on Tue

The rally on Tuesday propelled the market capitalisation (mcap) of BSE-listed companies up by Rs10.9 lakh crore to Rs4,12,24,362.13 cr (Rs412.24 lakh cr or $4.81 trn). In last two sessions, investors’ wealth soared by Rs18.42 lakh cr.

Mumbai: Benchmark equity indices Sensex and Nifty surged over two per cent on Tuesday, tracking a rally in global markets after US President Donald Trump relaxed some of the tariffs on electronics products and hinted at duty revision for automobiles.

Rallying for the second straight session, the 30-share BSE Sensex jumped 1,577.63 points or 2.10 per cent to settle at 76,734.89. During the day, it zoomed 1,750.37 points or 2.32 per cent to 76,907.63, driven by the across-the-board rally. The NSE Nifty surged 500 points or 2.19 per cent to 23,328.55. Intra-day, it rallied 539.8 points or 2.36 per cent to 23,368.35. The key indices have recovered almost all the losses induced by Trump’s reciprocal tariffs announced on April 2. All the BSE sectoral indices closed in the green.

“The rally is fuelled by the surprise pause in reciprocal tariffs which continued today led by the exemption on electronics goods also. Auto stocks gained on potential tariff relief and banking stocks benefited from deposit rate cuts. Domestically, the focus has shifted to the earnings season which has a weak forecast while global recovery and RBI’s accommodative stance are supporting sentiment,” said Vinod Nair, Head (Research), Geojit Investments Limited.

As many as 3,302 stocks advanced, while 785 declined and 169 remained unchanged on the BSE.

“Trump also suggested he might grant exemptions on the 25 per cent levies for automobiles that are already in place, leading to a sharp rally in auto stocks. The latest tariff adjustments suggest the White House is recognizing the pressure on American consumers and the broader economy,” added Satish Chandra Aluri, analyst, Lemonn Markets Desk.

BSE Realty, Auto, Capital Goods and Industrials were lead gainers, jumping up to 5 per cent. IndusInd Bank was the lead gainer among Sensex shares, surging by 6.84 per cent. Tata Motors rallied 4.50 per cent. Larsen & Toubro, Axis Bank, Adani Ports, HDFC Bank, ICICI Bank and HCL Tech were also among the gainers. ITC and Hindustan Unilever were the only laggards. Trump has suggested that he might temporarily exempt the auto industry from tariffs that were imposed earlier.

The BSE smallcap gauge jumped 3.21 per cent and midcap index rallied 3.02 per cent. All BSE sectoral indices ended higher. Realty zoomed 5.81 per cent, Industrials soared 3.76 per cent, capital goods (3.67 per cent), auto (3.39 per cent), consumer discretionary (3.12 per cent), financial services (2.94 per cent) and metal (2.75 per cent).