Mumbai: Indian stock markets opened higher on Tuesday, buoyed by global optimism and hopes of lessening trade tensions.
The increase followed words and actions from the US government indicating potential tariff relief, which investors regard as a step toward a broader trade agreement with China.
The Nifty 50 index rose 539.80 points, or 2.36 percent, to open at 23,368.35, while the BSE Sensex rose 1,679.20 points, or 2.23 percent, to begin the day at 76,836.46.
Market mood was boosted by indications that US President Donald Trump may make additional trade concessions, particularly in the semiconductor and electronics sectors.
Ajay Bagga, a Banking and Market Expert, said ANI, "Indian markets are motivated to see the good today. The worst of Trump's tariff tantrums may be over, if only for 90 days. Markets will look to earnings and management guidance for clarity during the Trump Policy Uncertainty. India stands out as a strong structural domestic tale that should draw some FPI flows once the Trump policy is finalised."
US Customs has announced temporary tariff exemptions for important consumer and industrial devices, including semiconductors. On Sunday, the US Commerce Secretary reiterated that the reprieve is only temporary. Trump also stated in a post that current restrictions are temporary and that more chip tariffs may be issued next week.
Global markets reacted warmly to these events. On Monday, the Asian, European, and US markets all closed higher. In pre-market trading, US Big Tech companies experienced gains of more than 6%.
Meanwhile, Indian investors remained confident in the market. Despite constrained liquidity in March, Indian SIP investors invested more than Rs 25,000 crore in equities mutual funds, providing solid support to the markets.
Foreign Institutional Investors (FIIs) were net sellers in the previous session on April 11, withdrawing Rs 2,519 crore, while Domestic Institutional Investors (DIIs) remained net buys, investing Rs 3,759 crore.
In corporate news, numerous Indian corporations are scheduled to release their March quarter results on Tuesday. These companies include ICICI Lombard General Insurance Company, Indian Renewable Energy Development Agency, GM Breweries, MRP Agro, Hathway Bhawani Cabletel and Datacom, and Delta Industrial Resources.
In other Asian markets, Taiwan's weighted index increased by more than 1.6 percent, South Korea's KOSPI increased by 0.79%, Japan's Nikkei 225 increased by 0.88%, and Hong Kong's Hang Seng index increased by 0.07 percent.
In the United States, markets closed higher on Monday, with the Dow Jones up 0.78 percent, the NASDAQ up 0.64 percent, and the S&P 500 up 0.79 percent.
Investors are keeping a cautious eye out for any more pronouncements from the US administration that could alter the trade picture and influence future market movements.
