Sensex Surges 1,500 Points as Trump’s Tariff Relief Signal Lifts Auto Stocks

Indian markets witnessed a sharp rally on Tuesday morning, with the Sensex jumping over 1,500 points and the Nifty reclaiming the 23,000 mark, spurred by strong gains in the automobile sector. The surge came after US President Donald Trump hinted at possible relief from the recently imposed auto import tariffs, triggering optimism across global equities.

Earlier this month, Trump had levied a flat 25% tariff on auto imports. However, in a statement yesterday, he said he was “very flexible” on trade policies and was “looking at something to help some of the car companies,” signalling a potential softening of his stance.

The remarks were welcomed by investors, who responded with heavy buying across equity markets, although with measured caution due to the US President’s often unpredictable trade moves.

Following global cues, Indian equities opened over 2% higher, mirroring gains across Asian markets. Japan’s Nikkei and South Korea’s KOSPI indices also advanced, with major automakers like Toyota, Mazda, and Nissan posting notable gains.

Meanwhile, the rupee appreciated by 39 paise to 85.71 against the US dollar in early trade. Forex dealers attributed the move to a weaker US dollar index, which provided support to the Indian currency despite ongoing foreign capital outflows.

Market experts caution that the global financial environment remains volatile. The previous week saw massive selloffs that wiped out trillions in investor wealth. While the auto sector’s recovery offers some respite, Trump's recent tariffs on tech and pharmaceutical imports continue to cast uncertainty over broader market sentiment.