New Delhi, Feb 4 (PTI) – Indian investors saw a massive surge in their wealth on Tuesday, as market capitalization of BSE-listed companies skyrocketed by Rs 5.95 lakh crore. This came after the benchmark indices jumped nearly 2 percent, fueled by positive news from the US regarding trade relations with Mexico and Canada.
The BSE Sensex surged by 1,397.07 points, or 1.81 percent, to close at 78,583.81, marking its highest level in a month. Earlier in the session, it had reached 78,658.59, up 1,471.85 points or 1.90 percent. Meanwhile, the NSE Nifty rose by 378.20 points, or 1.62 percent, reaching 23,739.25 – its highest since January 3.
The bullish sentiment in the stock market was sparked by US President Donald Trump’s decision to delay the imposition of tariffs on Mexico and Canada by a month. This delay has been seen as a significant step in easing tensions over the ongoing trade war, providing relief to global markets.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., noted that the tariff deferral had a calming effect on investors, boosting confidence in both global and domestic equities. "Indian equity markets witnessed a sharp rally after US President deferred the planned tariffs, providing major relief amid escalating trade war concerns," he said.
In line with the rally, key stocks saw notable gains. Larsen & Toubro climbed nearly 5 percent, while Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement, and Asian Paints also posted significant gains.
However, some stocks underperformed. ITC Hotels, Zomato, Nestle, and Maruti were among the notable laggards on the day.
The rally was not limited to large-cap stocks. Both the BSE midcap and smallcap indices saw impressive gains, rising 1.35 percent and 1.20 percent, respectively.
Sector-wise, capital goods led the charge, jumping by 3.42 percent. Other sectors that performed well included industrials (up 2.59 percent), energy (up 2.50 percent), oil & gas (up 2.40 percent), power (up 2.31 percent), and financial services (up 2 percent). The FMCG sector, however, was the only one to close in the red.
Global markets also saw a positive turn, with Seoul, Tokyo, and Hong Kong posting strong gains as well.
Commenting on the broader market sentiment, Satish Chandra Aluri, an analyst at Lemonn Markets Desk, said the tariff delay eased global trade war concerns, allowing domestic investors to focus on the upcoming Reserve Bank of India (RBI) meeting.
On the BSE, 2,509 stocks advanced, while 1,410 declined, and 154 remained unchanged, reflecting the widespread optimism among investors.
Market Snapshot:
- BSE Sensex: +1,397.07 points (+1.81%) to 78,583.81
- NSE Nifty: +378.20 points (+1.62%) to 23,739.25
- Market Capitalization: +Rs 5.95 lakh crore to Rs 4,25,50,826.11 crore (USD 4.88 trillion)
