Positive Opening for Indian Markets on U.S. Tariff Reprieve; Gold Hits Record High

 India’s benchmark indices opened on a positive note Friday, buoyed by improved sentiment after the U.S. announced a temporary rollback of some tariffs.

Market Update at 10:15 AM: India’s benchmark indices opened on a positive note Friday, buoyed by improved sentiment after the U.S. announced a temporary rollback of some tariffs, although global trade tensions continue to weigh on investor confidence.

The benchmark BSE Sensex climbed 2 per cent to 75,284, while the broader NSE Nifty 50 advanced 2 per cent to 22,864. Market sentiment got a boost from a U.S. tariff relief, although concerns over global trade uncertainties still persist.

On Wall Street, stocks surged Wednesday following U.S. President Donald Trump’s decision to ease certain tariffs, even as duties on Chinese imports were increased. This momentum carried over into global markets on Thursday.

Nonetheless, persistent fears of a global economic slowdown, stemming from the ongoing trade conflict, curtailed the broader rally and drove investors toward safe-haven assets. As a result, gold prices hit a record high, and the Swiss franc strengthened to its highest level against the U.S. dollar in a decade.

Among sectoral performers, metals rallied 2.7 per cent, supported by a softer dollar, while pharmaceutical stocks rose 3 per cent, recovering from a 2 per cent decline seen in the prior session.

Pre-Market Update at 7:45 AM: Indian stock markets are likely to start on a positive note on Friday, with the Sensex and Nifty 50 expected to open higher. This anticipated gap-up opening comes even as global markets remain under pressure due to rising tensions surrounding the US-China trade war and its potential impact on the global economy. 

Gift Nifty was hovering near the 22,940 mark, showing a premium of about 460 points over the previous close of Nifty futures, hinting at a strong gap-up opening for the Indian stock market indices.

Meanwhile, the Reserve Bank of India (RBI) is set to unveil its first monetary policy decision for FY26 today. The Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, is widely expected to announce a repo rate cut, considering the backdrop of easing inflation and a slowdown in economic growth.

Gift Nifty hovered near the 22,396 mark, trading at a discount of approximately 234.35 points compared to the previous close of Nifty futures. This suggests that Indian stock market indices are likely to open on a weaker note.

The US stock market slipped on Tuesday, erasing early gains and extending its losing streak. The S&P 500 fell below the 5,000 mark for the first time in nearly a year, with the market shedding around USD 5.83 trillion in value over the past four sessions.

The Dow Jones Industrial Average dropped 320.01 points, or 0.84 per cent, finishing at 37,645.59. Meanwhile, the S&P 500 slid 79.48 points, or 1.57 per cent, to close at 4,982.77. The Nasdaq Composite also tumbled, losing 335.35 points, or 2.15 per cent, to settle at 15,267.91.

US President Donald Trump announced a 90-day pause on reciprocal tariffs for countries that have refrained from retaliating, while moving ahead with higher tariffs on China. Acknowledging growing concerns and nervousness around the tariff situation, Trump admitted that "people were jumping a bit out of line," but remained confident that trade agreements would eventually be secured with several nations, including China.

In an unexpected turn, US consumer prices fell in March, driven by lower costs for gasoline and used cars. The Consumer Price Index (CPI) slipped by 0.1 per cent—its first decline since May 2020—following a 0.2 per cent increase in February. Economists surveyed had anticipated a modest rise of 0.1 per cent. On an annual basis, inflation rose by 2.4 per cent in March, easing from the 2.8 per cent pace recorded in February.

Former US President Donald Trump has significantly raised tariffs on Chinese goods, pushing the overall rate to at least 145 per cent. This figure includes a 125 per cent tariff reflecting "reciprocal" duties, alongside additional levies in response to China's retaliatory measures against earlier US tariffs. It also factors in a 20 per cent duty imposed earlier this year, linked to efforts to combat fentanyl trafficking.

Meanwhile, the number of Americans filing for new unemployment benefits saw a slight uptick last week. Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 223,000 for the week ending April 5, aligning with economists' expectations. 

Commenting on monetary policy, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, stated that while interest rate cuts remain a possibility, the significant shifts in US trade policy have introduced considerable uncertainty. This makes it challenging to predict the economic outlook and determine the appropriate path for adjusting the Fed’s rate policies.

Asian markets slipped on Friday, mirroring the sharp losses seen on Wall Street overnight as escalating US-China trade tensions dampened investor sentiment.

Japan’s Nikkei 225 tumbled 5.46 per cent, and the broader Topix index fell 5.05 per cent. In South Korea, the Kospi shed 1.55 per cent, while the Kosdaq edged down 0.11 per cent. Futures for Hong Kong’s Hang Seng index alOn Wednesday, the Indian stock market closed in the red, pressured by persistent concerns over a potential trade war sparked by US President Donald Trump's tariff measures. The Sensex dropped 379.93 points, or 0.51 per cent, ending the session at 73,847.15, while the Nifty 50 slipped 136.70 points, or 0.61 per cent, to settle at 22,399.15.so pointed to a weaker start.

On Wednesday, the Indian stock market closed in the red, pressured by persistent concerns over a potential trade war sparked by US President Donald Trump's tariff measures. The Sensex dropped 379.93 points, or 0.51 per cent, ending the session at 73,847.15, while the Nifty 50 slipped 136.70 points, or 0.61 per cent, to settle at 22,399.15.

The Reserve Bank of India (RBI) on Wednesday reduced the repo rate by 25 basis points, bringing it down to 6 per cent. Additionally, the central bank shifted its policy stance to ‘accommodative’ and revised India's GDP growth forecast for FY26 lower, from 6.7 per cent to 6.5 per cent.

Meanwhile, Tata Consultancy Services (TCS) posted a net profit of Rs 12,224 crore for the March quarter, marking a 1.3 per cent decline from Rs 12,380 crore in the previous quarter. Its Q4FY25 revenue rose marginally by 0.8 per cent to Rs 64,479 crore from Rs 63,973 crore sequentially. In dollar terms, revenue slipped 1 per cent quarter-on-quarter to USD 7,465 million. TCS’ EBIT stood at Rs 15,601 crore, down 0.6 per cent QoQ, with the EBIT margin narrowing to 24.2 per cent from 24.5 per cent. The company reported a Total Contract Value (TCV) of USD 12.2 billion for the quarter and declared a final dividend of Rs 30 per share.

Gold prices moved close to their record highs, driven by growing recession fears and heightened trade tensions between the United States and China, which boosted demand for safe-haven assets like bullion. Spot gold advanced by 1 per cent, reaching USD 3,205.53 per ounce, after touching an all-time high of USD 3,217.43 earlier in the session. For the week, gold has risen over 5 per cent. Meanwhile, US gold futures jumped 1.5 per cent, settling at USD 3,226.50.

Crude oil prices continued to decline on Friday, building on the more than 3 per cent drop seen in the previous session. Brent crude slipped by 0.47 per cent to trade at USD 63.03 per barrel, while US West Texas Intermediate (WTI) crude futures edged lower by 0.60 per cent, settling at USD 59.71 a barrel.

The US dollar lost ground against major currencies, reaching a 10-year low against the Swiss franc. It fell 3.89 per cent to 0.825 versus the franc. Meanwhile, the euro strengthened by 2.23 per cent, and the dollar dropped 2.07 per cent against the Japanese yen, trading at 144.66.

On April 09, 2025, foreign institutional investors (FII) sold shares worth Rs 4,358.02 crore, while domestic institutional investors (DII) bought shares worth Rs 2,976.66 crore.

Stocks that are banned for trading in the F&O segment on April 11, 2025, are Birlasoft Ltd, Hindustan Copper Ltd, Manappuram Finance Ltd, and National Aluminium Co Ltd.

Disclaimer: The article is for informational purposes only and not investment advice.