New Delhi: Indian stock indices experienced a significant rise on Friday, buoyed by President Trump's decision to suspend reciprocal tariffs on numerous countries, including India, for a period of 90 days.
The Sensex finished at 75,157.26 points, gaining 1,310.11 points or 1.77 percent, while the Nifty closed at 22,828.55 points, up 429.40 points or 1.92 percent. Among the sectoral indices, Nifty metal, consumer durables, and oil and gas sectors were the leading performers on Friday.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "The unexpected halt on reciprocal tariffs from the US has provided some relief amid ongoing uncertainties. Any progress in bilateral trade discussions could significantly impact the short-term outlook for export-driven sectors. Additionally, the favorable domestic conditions, characterized by lower interest rates and manageable inflation, are encouraging investors to adopt a balanced portfolio strategy for improved long-term risk-reward."
President Trump has paused the reciprocal tariffs for various countries currently in negotiations with the US administration, although the 125 percent tariff on China remains in effect.
The stock indices made a notable recovery following the recent downturn triggered by the announcement of reciprocal tariffs by the US administration, which had led to a global sell-off in equities, affecting India as well.
Last week's announcement of reciprocal tariffs by Trump sent shockwaves through global asset classes, including those in India. Equity markets around the world faced declines, particularly in response to Trump's extensive trade tariffs, which raised concerns about trade tensions and a potential economic downturn.
Since beginning his second term, President Trump has consistently emphasized his position on tariff reciprocity, asserting that the United States will impose tariffs equivalent to those levied by other nations, including India, to ensure equitable trade practices.
