Tariff Delay Sparks Optimism: Benchmark Indices Gain Up to 0.90 Per Cent
The Sensex climbed 0.90 per cent to 77,879.43, while the Nifty 50 advanced 0.86 per cent, reaching 23,562.75.
Market Update at 9:45 AM: Indian equity markets opened on a strong note. This surge comes after the President Donald Trump decided to postpone a proposed 25 per cent tariff on imports from Canada and Mexico for a month, following commitments from these nations to enhance border security. The move averted immediate trade disruptions that could have led to higher consumer prices and economic instability.
At 9:45 AM, the Sensex climbed 0.90 per cent to 77,879.43, while the Nifty 50 advanced 0.86 per cent, reaching 23,562.75.
Broader markets mirrored the bullish sentiment, with the Nifty Midcap 150 rising 1.31 per cent to 19,835.05 and the Nifty Smallcap 250 gaining 0.96 per cent to 15,828.90.
Meanwhile, market volatility edged higher, as reflected in India VIX, which increased by 1.95 per cent to 14.63, signaling heightened investor caution.
Among sectoral indices, Nifty PSU Bank, Nifty Metal, and Nifty Pharma emerged as the Top Gainers, rising 2.53 per cent, 2.04 per cent, and 1.50 per cent, respectively. On the flip side, Nifty FMCG was the worst performer, declining 0.68 per cent, followed by Nifty Consumer Durables and Nifty Media, which fell 0.64 per cent and 0.41 per cent, respectively.
Within the Nifty 50, Hindalco, ONGC, and Larsen & Toubro led the gainers, advancing by 3.16 per cent, 2.69 per cent, and 2.67 per cent, respectively. Conversely, Trent, Power Grid, and Hindustan Unilever were the top laggards, shedding 4.13 per cent, 1.44 per cent, and 1.17 per cent, respectively.
The broader market was positive, with 1,943 stocks advancing, significantly outnumbering 442 declining stocks, indicating strong buying interest across sectors.
Market Update 8:15 AM: U.S. equities ended Monday’s session in the red, although they trimmed earlier sharper losses after President Donald Trump announced a temporary postponement of tariffs on Mexico.
The Dow Jones Industrial Average slipped by 124.47 points, or 0.27 per cent, closing at 44,420.19. The S&P 500 declined 45.45 points, or 0.75 per cent, to end at 5,995.01, while the Nasdaq Composite tumbled 235.21 points, or 1.20 per cent, finishing at 19,392.23.
Asian markets edged higher on Tuesday following the U.S. administration’s decision to defer tariffs on Mexico and Canada for a month, with the announcement of further negotiations with China providing additional support to investor sentiment.
The GIFT Nifty indicates a positive start for Indian markets. At approximately 7:00 AM IST, Nifty futures were trading at 23,549, suggesting an optimistic opening.
U.S. Treasury yields surged, with the 2-year yield rising by 24 basis points and the 10-year yield climbing 13 basis points in early Tuesday trade.
The U.S. dollar softened, with the dollar index easing to 108.67 against a basket of major currencies, giving up some of its previous session’s gains after President Trump’s tariff pause on Mexico.
WTI crude oil futures slid to approximately USD 72.2 per barrel on Tuesday, erasing Monday’s gains. The drop came after Trump agreed to delay his proposed tariffs on Mexico and Canada for 30 days following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on enhancing border security measures.
Foreign Institutional Investors (FIIs) extended their selling streak for the 23rd consecutive session on February 3, offloading equities worth Rs 3,958 crore. Meanwhile, Domestic Institutional Investors (DIIs) continued to be net buyers, purchasing equities worth Rs 2,708 crore on the same day.
No securities are currently under the F&O ban for today.
Disclaimer: The article is for informational purposes only and not investment advice.