Mumbai, April 11 – Indian stock markets rallied sharply on Friday morning, buoyed by a 90-day suspension of additional US tariffs on Indian goods. The move, confirmed by the White House via executive orders, lifted investor sentiment and triggered a broad-based buying spree across key sectors.
The benchmark BSE Sensex jumped 1,210.68 points, or around 1.6%, to reach 75,057.83 in early trade. The NSE Nifty followed suit, surging 388.35 points to 22,787.50, marking a strong recovery from Wednesday’s dip.
The relief rally came after the United States announced a temporary halt on additional tariffs imposed on India, with the suspension lasting until July 9, 2025. This development came just days after US President Donald Trump enacted broad duties on exports from 60 countries, including higher levies specifically targeting Indian products such as shrimp and steel.
Heavyweights driving the rally included Tata Motors, Sun Pharma, Tata Steel, HCL Technologies, Tech Mahindra, Bajaj Finserv, Adani Ports, and Reliance Industries. These companies saw significant early gains, reflecting optimism over improved export prospects and reduced trade tensions.
Only Asian Paints and Nestle lagged behind, trading in the red amidst the broader market upswing.
Asian markets painted a mixed picture. While Shanghai's SSE Composite and Hong Kong's Hang Seng posted modest gains, Japan’s Nikkei 225 plunged 4%, and South Korea’s Kospi edged lower.
In the US, markets faced a sharp correction on Thursday after the previous day’s rally. The Nasdaq Composite dropped 4.31%, S&P 500 slid 3.46%, and the Dow Jones Industrial Average fell 2.50%, indicating ongoing global trade tensions and investor nervousness.
"While intra-day volatility is expected to persist, one positive factor for India is that higher US tariffs on China may boost Indian exports to the US," said Vikas Jain, Head of Research at Reliance Securities. He added that China's possible retaliation could redirect Foreign Institutional Investors (FIIs) from Chinese markets to India.
FIIs, however, were net sellers on Wednesday, offloading equities worth ₹4,358.02 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that while the current environment does not support a prolonged rally, India’s robust macroeconomic fundamentals make it relatively resilient amidst global trade tensions.
Global oil benchmark Brent crude edged down 0.36% to $63.10 per barrel.
On Wednesday, Indian markets closed lower ahead of the holiday. The Sensex had declined 379.93 points to settle at 73,847.15, while the Nifty shed 136.70 points, closing at 22,399.15. Markets remained shut on Thursday in observance of Shri Mahavir Jayanti.
Markets React Positively to US Tariff Suspension
The benchmark BSE Sensex jumped 1,210.68 points, or around 1.6%, to reach 75,057.83 in early trade. The NSE Nifty followed suit, surging 388.35 points to 22,787.50, marking a strong recovery from Wednesday’s dip.
The relief rally came after the United States announced a temporary halt on additional tariffs imposed on India, with the suspension lasting until July 9, 2025. This development came just days after US President Donald Trump enacted broad duties on exports from 60 countries, including higher levies specifically targeting Indian products such as shrimp and steel.
Top Gainers and Sectoral Strength
Heavyweights driving the rally included Tata Motors, Sun Pharma, Tata Steel, HCL Technologies, Tech Mahindra, Bajaj Finserv, Adani Ports, and Reliance Industries. These companies saw significant early gains, reflecting optimism over improved export prospects and reduced trade tensions.
Only Asian Paints and Nestle lagged behind, trading in the red amidst the broader market upswing.
Global Markets Mixed Amid Trade Uncertainty
Asian markets painted a mixed picture. While Shanghai's SSE Composite and Hong Kong's Hang Seng posted modest gains, Japan’s Nikkei 225 plunged 4%, and South Korea’s Kospi edged lower.
In the US, markets faced a sharp correction on Thursday after the previous day’s rally. The Nasdaq Composite dropped 4.31%, S&P 500 slid 3.46%, and the Dow Jones Industrial Average fell 2.50%, indicating ongoing global trade tensions and investor nervousness.
Experts Cautious Despite Upbeat Sentiment
"While intra-day volatility is expected to persist, one positive factor for India is that higher US tariffs on China may boost Indian exports to the US," said Vikas Jain, Head of Research at Reliance Securities. He added that China's possible retaliation could redirect Foreign Institutional Investors (FIIs) from Chinese markets to India.
FIIs, however, were net sellers on Wednesday, offloading equities worth ₹4,358.02 crore.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that while the current environment does not support a prolonged rally, India’s robust macroeconomic fundamentals make it relatively resilient amidst global trade tensions.
Oil Prices and Previous Session Recap
Global oil benchmark Brent crude edged down 0.36% to $63.10 per barrel.
On Wednesday, Indian markets closed lower ahead of the holiday. The Sensex had declined 379.93 points to settle at 73,847.15, while the Nifty shed 136.70 points, closing at 22,399.15. Markets remained shut on Thursday in observance of Shri Mahavir Jayanti.
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