Sensex jumps over 500 points as Trump pauses tariffs
What's the story
The Indian stock market opened on a strong note today, buoyed by positive global cues.
The rally was sparked by US President Donald Trump's decision to postpone tariff imposition on Canada and Mexico by a month.
The Nifty 50 index opened at 23,510, up 149 points (0.64%), while the BSE Sensex jumped over 500 points (0.65%) to open the session at around 77,687.
Recovery
Market recovery and investor focus
Market experts believe the temporary halt on tariffs will help recover from Monday's losses when Sensex plunged over 700 points.
Further, investors are now turning their focus to the Union Budget 2025, which was earlier overshadowed by trade concerns.
Ajay Bagga, a banking and market expert, told ANI, "Indian market futures are indicating a positive opening. The positives of the Union Budget should help the markets."
Market performance
Sectoral indices and market sentiment
Most sectoral indices on the NSE were trading in the green, except for Nifty FMCG.
Nifty Auto led the gains with a 1.58% surge, while Nifty PSU Bank jumped by over 1.72%, reflecting investor confidence in the banking sector.
Out of the 50 stocks in the Nifty 50 index, 40 stocks were in the green during the opening hour.
Bharat Electronics, Hindalco, ONGC, Tata Motors, and Infosys were the top gainers on Nifty 50, rising 2-3%.
Global impact
Global market response and midcap performance
The positive momentum wasn't restricted to Indian markets, as Asian markets also saw strong gains.
Japan's Nikkei 225 climbed over 1%, Hong Kong's Hang Seng index surged 2.48%, and South Korea's KOSPI gained 1.5%.
In the broader market, both BSE Midcap and BSE Smallcap were up almost by 1%.
Ruchit Jain, Vice President of Motilal Oswal Financial Services, said, "A one to three-month consolidation phase is expected before any significant rally."