Trump’s Tariff Holdup Triggers Market Rally

As a rebound has been triggered in the global sentiment, it has fuelled a sharp surge in domestic equities - Vinod Nair, Head (Research), Geojit Financial Services

Mumbai: Benchmark stock indices Sensex and Nifty rebounded nearly two per cent on Tuesday in line with a recovery in Asian peers after US President Donald Trump delayed tariffs on Mexico and Canada for a month.

The 30-share BSE Sensex jumped 1,397.07 points or 1.81 per cent to settle at a month’s high of 78,583.81. During the day, it surged 1,471.85 points or 1.90 per cent to 78,658.59. The NSE Nifty soared 378.20 points or 1.62 per cent to 23,739.25, a level not seen since January 3. “Yesterday, the Indian market struggled to absorb the optimism generated by the good Union Budget due to heightened geopolitical risks stemming from ‘Trump tariff war’.

However, India could outperform in a weak global market, and as a rebound has been triggered in the global sentiment, it has fuelled a sharp surge in domestic equities,” said Vinod Nair, Head (Research), Geojit Financial Services.

The BSE midcap gauge jumped 1.35 per cent and smallcap index surged 1.20 per cent.

“A strong start, driven by a rebound in global markets, gained further traction as renewed buying in select heavyweight stocks sustained the upbeat sentiment. All major sectors contributed to the rally, with energy, banking, and metals leading the gains,” added Ajit Mishra, Sr V-P (Research), Religare Broking Ltd.

Among BSE sectoral indices, capital goods rallied 3.42 per cent, industrials (2.59 per cent), energy (2.50 per cent), oil & gas (2.40 per cent), power (2.31 per cent), and financial services (2 per cent). BSE FMCG emerged as the only laggard. As many as 2,509 stocks advanced while 1,410 declined and 154 remained unchanged on the BSE.

From the 30-share blue-chip pack, Larsen & Toubro rallied nearly 5 per cent. Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement and Asian Paints were also among the major gainers. ITC Hotels, Zomato, Nestle and Maruti were among the laggards.

In Asian markets, Seoul, Tokyo and Hong Kong ended significantly higher. European markets were trading mostly lower. US markets ended in the negative territory on Monday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs3,958.37 crore on Monday, according to exchange data.