Indian equity markets witnessed a sharp rally on Tuesday, buoyed by the United States’ decision to provide a 90-day relief from reciprocal tariffs. The announcement lifted investor sentiment, especially amid expectations of similar relief for the automotive sector.
The BSE Sensex opened with a robust jump of nearly 1,700 points at 76,852 and soon touched the intra-day high of 76,908. Throughout the session, the index traded in a narrow range near its peak, supported by strong buying in private banks, metal stocks, IT firms, and infrastructure-related shares.
By the close of trade, the Sensex had gained 1,578 points, or 2.1%, ending at 76,735. Heavyweights like HDFC Bank, ICICI Bank, and Axis Bank contributed significantly to the gains, collectively adding around 750 points to the overall rally.
The NSE Nifty also mirrored the positive sentiment, opening at the day’s high of 23,368 and settling marginally lower at 23,329—up 500 points or 2.2% for the day.
Global cues, especially from the US, added to the upbeat mood in domestic markets. Investors responded positively to expectations that President Donald Trump could announce additional tariff exemptions, sparking optimism across major indices.
“Markets are adjusting to the new reality of daily Trump twists and turns,” said Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. “Markets tend to react positively when tariffs appear to be lifted temporarily and negatively when unexpected developments arise.”
On the Nifty, top gainers included IndusInd Bank, Shriram Finance, Larsen & Toubro, Tata Motors, and Axis Bank.
Broader market indices such as the Nifty 500, Midcap, and Smallcap also traded in the green, reflecting widespread buying interest.
Sector-wise, Realty, Automobiles, Metals, Financial Services, and Media stocks led the rally.
“Optimism was further boosted by reports that President Trump is considering similar tariff relief for the automotive sector,” said Sundar Kewat of Ashika Institutional Equity.
The Indian rupee also strengthened against the US dollar, closing 28 paise higher at 85.77, compared to Friday’s close of 86.05.
-IANS
