Markets: Hoping for tariff relief, Indian indices zoom over 2%
Virendra Pandit
New Delhi: With US President Donald Trump pausing the 26 percent tariff on India for three months, and amid ongoing bilateral trade talks showing positivity, the Indian equity market surged over 2 percent on Monday, bringing cheers back to the Dalal Street in Mumbai.
Following President Trump’s comments suggesting the possibility of additional tariff exemptions, the benchmark BSE Sensex jumped 1577.63 points (2.10 percent) to close at 76,734.89. In comparison, the broader NSE Nifty 50 zoomed 515.55 points (2.26 percent) to close at 23,344.10.
But analysts watching world markets are cautious because of the volatility of the geopolitical and geoeconomic situations and overall uncertainties. Trump has himself been playing the game of chicken ever since he started the tariff gambit, plunging the markets into turmoil, as economists issued dire warnings of potential global recession and a likely collapse of international trade.
Despite this cautious optimism, Indian benchmark indices played to catch up with global peers. Global markets, led by the US, posted a smart pullback over the last few trading sessions on hopes of further tariff exemptions from the Trump administration.
On Tuesday, the BSE Sensex opened with a huge gap of nearly 1,700 points at 76,852, and soon spurted to a high of 76,908. The index, thereafter, consolidated near the highs of the day backed by buying support in private banks, metals, IT and other infrastructure related shares.
Among the index stocks – HDFC Bank, ICICI Bank and Axis Bank collectively contributed almost 50 percent or 750 points of the day’s gain. The NSE Nifty registered the day’s high at the opening bell at 23,368, and finally settled 500 points or 2.2 per cent higher at 23,329.
Even among the Sensex 30 shares, the IndusInd Bank was the biggest percentage gainer as the stock zoomed nearly 7 percent after shareholding pattern showed by Foreign Portfolio Investors (FPIs) increased holding in the bank during the March 2025 quarter.
Tata Motors, Larsen & Toubro, Axis Bank and Adani Ports rallied over 4 percent each. In the broader market – the BSE MidCap and SmallCap indices jumped over 3 percent each. The overall breadth was extremely positive with 4,256 shares advancing on the BSE as against 785 declining stocks on Tuesday.
