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Sensex Reclaims 75k Level, Nifty Jumps 2% as Trump's Tariff Pause Brings Cheer on D-street

Sensex, Nifty today: Stock markets rallied on Friday as Trump announced a 90-day pause on the imposition of tariffs on certain countries, China excluded

Sensex, Nifty

Sensex Today: D-Street investors witnessed a sharp rally in stock markets as Trump’s announcement of a 90-day tariff pause brought some relief on the macro front. Domestic benchmark indices— Sensex and Nifty— rallied by nearly 2% on Friday, despite global markets resuming their downward streak. All industry indices were trading in the green territory.

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Nifty Metal was the top-performing sectoral index, surging over 280 points or 3.58%. At 10:10, BSE Sensex was trading at 75,129 level, up by nearly 1,300 points. Whereas, Nifty50 surged by over 400 points, reclaiming the 22,800 level mark, during the morning trading session.

BSE Sensex
BSE Sensex

From the Sensex Pack, except Asian Paints all stocks were trading in green. Tata Steel, Tata Motors, Bajaj Finserv, Bharti Airtel, Adani Ports and Mahindra and Zomato (now Eternal) were among the top-performing stocks.

However, D-street analysts continue to take a cautious stance, calling the rally a temporary play. This is majorly due to looming uncertainty around Trump's tariff stance. While the 90-day pause might have brought cheer across the D-street, policy flip-flopping and trade spat between China and the US might dim the overall sentiment. This was visible in the movement of global markets yesterday which witnessed bears taking charge again.

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"The gap up opening in the Nifty this morning is unlikely to sustain beyond a point given the elevated uncertainty in global markets. President Trump’s retreat from the reciprocal tariffs imposed on countries except China was forced by the US bond market where instead of safe-haven buying in US  treasuries, there was big selling, pushing the 10-year bond yield up to 4.5%," VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

In brief, bond vigilantes forced Donald Trump to retreat. The 10-year yield is even now at around 4.46%, he added.

No room for a sustained rally?

It appears so. The US markets resumed the downtrend yesterday with the S&P 500 index dropping over 3.46%. The tech-heavy Nasdaq, which had recently logged its strongest single-day surge, reversed course and plummeted over 4.3% or 737 points.

The Dow Jones Industrial Average also witnessed a 1,000-point decline and went below the 40k level mark. Asian markets followed the cue and experienced a similar decline. Japan's Nikkei dropped over 1,444 points. South Korea's Kospi also went marginally down by 0.83%.

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"There is no room for a sustained rally in the market in the present uncertain context. But investors can take relief from the fact that Indian macros are good and we are one of the least impacted countries in this trade war. Investors have to be cautious and should prioritise safety over returns," Vijayakumar said.

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