Indian stock markets opened strong on Tuesday, tracking positive global cues after former U.S. President Donald Trump paused tariff imposition for a month. Investors reacted positively, leading to gains across major indices. The Nifty 50 index opened at 23,509.90, gaining 148.85 points (0.64 percent).
?Nifty hits 4-week high; Snaps 2-session losing streak led by Shriram Finance, LT
Here's how the market panned out today! ? #Nifty #StockMarket #StockMarketIndia #stockmarketsindia pic.twitter.com/f5qfd5PqCp
— ET NOW (@ETNOWlive) February 4, 2025
Indian stock markets opened strong on Tuesday, tracking positive global cues after former U.S. President Donald Trump paused tariff imposition for a month. Investors reacted positively, leading to gains across major indices. The Nifty 50 index opened at 23,509.90, gaining 148.85 points (0.64 percent).
The BSE Sensex surged 500.86 points (0.65 percent) to start at 77,687.60. Experts said the temporary halt on tariffs will help the market recover from Monday’s losses. Investors are now focusing on the Union Budget, which was previously overshadowed by trade concerns.
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— ET NOW (@ETNOWlive) February 4, 2025
Ajay Bagga, a Banking and Market Expert, told ANI, “Indian market futures indicate a positive opening. The positives of the Union Budget should help the markets.
Down 1 to 2 percent this early North American morning: that’s the reaction of the Canadian dollar and Mexican peso to the weekend’s US tariff news.
The focus is now on the calls that President Trump is scheduled to have with the leaders of the two countries.#economy #tariffs… pic.twitter.com/7Kv6icjrQz— Mohamed A. El-Erian (@elerianm) February 3, 2025
The other optimistic forecast is the Indian central bank, RBI, may start a rate cut cycle on Friday, Feb 7th.
Expect short covering to dominate today as markets try to take the US and Asian lead and recover some lost ground.
He added, “Trading on Trump narratives is extremely harmful. From currency markets to stock markets to commodities to even crypto assets, markets moved again on Monday night/Tuesday morning as Mexico and Canada obtained a 30-day respite from Trump tariffs in return for upgrading their border controls, ramping up the fight against drug trafficking, and agreeing to negotiate a new agreement.
Most NSE sectoral indices were green except Nifty FMCG, which traded lower.
Global cues lift Indian markets
Nifty Auto led with a 1.58 percent surge. Nifty PSU Bank jumped over 1.72 percent, reflecting investor confidence in banking. Of the Nifty 50 stocks, 40 were in the green, while 10 traded lower.
The broader market sentiment remained upbeat, backed by improving global cues. “The nifty ended in the red for the second day but not before staging a recovery from the day’s lows. Broader benchmarks underperformed, but the nifty’s long lower shadow showed that in the near term, bulls remain in the game.
Support spans the 23062 – 23200 zone, with near-term resistance seen in the 23386 – 23574 area with an extension near 23670. The index is still inside the falling channel originating from the December 20th lows, but yesterday’s drop held the 20-DMA on a closing basis, so at least for now, bulls seem to have the edge,” said Akshay Chinchalkar, Head of Research, Axis Securities. Asian markets also saw substantial gains.
Japan’s Nikkei 225 climbed over 1 percent, Hong Kong’s Hang Seng index surged 2.48 percent, and South Korea’s KOSPI gained 1.5 percent. The positive momentum extended beyond Indian markets.
