Mumbai— Indian stock markets rallied sharply on Tuesday after the U.S. administration announced a 90-day reciprocal tariff relief, with further exemptions likely in the automotive sector.
The Sensex opened with a surge of nearly 1,700 points at 76,852 and quickly hit an intraday high of 76,908. It remained in a narrow range near the peak throughout the session, driven by strong buying interest in private banks, metal stocks, IT firms, and infrastructure-related companies.
By the close, the Sensex had gained 1,578 points, or 2.1%, to end at 76,735. Heavyweights HDFC Bank, ICICI Bank, and Axis Bank were the top contributors, accounting for nearly 750 points—almost half of the day’s overall gain.
Similarly, the Nifty opened at its day’s high of 23,368 before settling slightly lower at 23,329, still up 500 points or 2.2%.
The rally was supported by a rebound in global markets, particularly in the U.S., amid growing optimism that former President Donald Trump could announce additional tariff rollbacks—boosting investor sentiment globally.
“Markets are adjusting to the new reality of daily Trump twists and turns,” said Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. “Sometimes, when tariffs appear to be temporarily lifted, markets react positively; when something unexpected happens, they react negatively.”
Top gainers on the Nifty included IndusInd Bank, Shriram Finance, Larsen & Toubro, Tata Motors, and Axis Bank.
Broader indices such as the Nifty 500, Midcap, and Small Cap also posted strong gains, reflecting widespread market optimism.
Sector-wise, Realty, Automobiles, Metals, Financial Services, and Media emerged as the best performers.
“Additional optimism was driven by reports suggesting that President Trump may extend similar tariff relief to the auto sector,” said Sundar Kewat of Ashika Institutional Equity.
The Indian rupee also strengthened, rising 28 paise to close at 85.77 against the U.S. dollar, compared to Friday’s closing rate of 86.05. (Source: IANS)
