
Markets: Amid China-US tariff war, and welcomed Indian Budget, bourses rejoice
Virendra Pandit
New Delhi: As the positive impact of the Union Budget for FY26 sank in the last two days, and America’s tariff war with China commenced, the Indian stock market rejoiced on Tuesday with Sensex surging nearly 1,400 points and Nifty 380 points.
The Indian markets climbed after the US tariffs imposed on Mexico and Canada were postponed for now, and investors assessed the Budget announcements fully, market experts said.
The benchmark indices climbed a couple of days after the presentation of Budget 2025-26 on Saturday last weekend, and amid a brewing trade war in North America as President Donald Trump sets the ground for negotitations with major US trading partners.
In India, the BSE Sensex climbed around 1,472 points, or 1.9 per cent, to hit an intra-day high of 78,658.6. Likewise, the NSE Nifty50 climbed 402 points, or 1.7 per cent, to an intra-day high of 23,762.7 from the previous close.
At close, Sensex settled at 78,583.81, up 1,397.07 points or 1.81 per cent from its previous close. Similarly, the NSE Nifty50 ended at 23,739.25, up 378.20 points or 1.62 percent. The gains in the benchmarks were led chiefly by the rise in share prices of L&T (up 4.3 per cent), IndusInd Bank, Adani Ports, Tata Motors, Reliance Industries, Ultratech Cement , NTPC, and HDFC Bank. (up 2.5 percent).
Other important indices, including the Nifty Bank, financial services, metal, pharma, and healthcare settled with gains of up to 2 percent. The Nifty FMCG index was the only index in the red, down 0.25 percent.
In the broader markets, the BSE MidCap index gained 1.35 percent, and the BSE SmallCap was higher by 1.2 percent.
The Indian markets climbed on Tuesday on the back of several factors, including the announcements made in the Union Budget and the postponement of the tariffs announced by President Donald Trump on Canada, and Mexico, even as China retaliated with its own tariffs on US goods imports.
Market experts, who were initially disappointed with ‘lack of direction’ for growth in the Budget, said the Saturday reaction was a knew-jerk reaction. As the positivity sank in, the market rejoiced.
Even the capex allocation is better than what it was last time, and the market expects to grow further on this count.
The income tax relief are also sentimentally positive. The beneficiaries would either deposit the savings, pay off EMIs, or go on a buying spree, benefiting the economy.
Experts believe that US President Donald Trump’s threats, except against China, appeared more like bargaining chips. In the case of Canada or Mexico, for example, he may come now across the table to negotiate terms. The tariff announcement followed by the postponement indicated this business trick.